News

• 22 June, 2020
• Posted by: EuroCham Cambodia

With the COVID-19 situation continuing to impact Cambodia, EuroCham will be regularly disseminating the official announcements from the Royal Government to ensure our network is updated as efficiently as possible.

Due to the significant number of incoming announcements, we are unable to translate these in full so please refer to our summaries below and the attached official notices in Khmer.

Official Announcements: 09 - 22 June

(English summaries provided by EuroCham Cambodia, subject to corrections by relevant authorities)

1. Royal Government of Cambodia Sub-Decree on the Online Business Registration System

On 10 June, the Royal Government of Cambodia issued the Sub-Decree on the Online Business Registration System to define the procedure, requirements, and approval for online business registrations. The scope of this Sub-Decree is applicable to registrations under the Ministry of Commerce, tax registrations with the General Department of Taxation, verification of enterprise establishment by the Ministry of Labour and Vocational Training, and registration of Qualified Investment Projects by the Council of Development of Cambodia. Requests for online registration can be made via the website: https://www.registrationservices.gov.kh. This process also permits representatives of business owners to register a business on their behalf.

Registration Certificate Procedure:

• Within 3 days after receiving an application, the Ministry of Commerce reviews the information and provides a certificate of business registration in digital form.  
• Within 4 days after the approval of the registration, the General Tax Department reviews the information and provides tax patent registration in digital form. Taxpayers will be taxed only 50% of the patent tax to promote online tax registrations. The business must provide bank account details to the General Department of Taxation within 15 days.      
• After business registration and tax registration approval, the Ministry of Labour and Vocational Training will review the enterprises opening notice; and provide a administrative registration number of enterprises opening notice within 1 day. Unless otherwise notified by the Ministry of Labour and Vocational Training, the enterprise opening notice will be deemed as automatically revived and received.  
• Within 20 days after receiving the application, the Cambodia Development Council reviews the accuracy of the information and provides the Plan Registration Certificate in digital form.   

2.   Royal Government of Cambodia Circular on Strategic Budget Planning for 2021-2023

On 09 June, the Royal Government of Cambodia released Circular No. 03 on strategic budget planning for 2021-2023. The Cambodian economy in 2020 is forecasted at -1.9% due to the impact of COVID-19, whilst the rate is forecasted to increase to 3.5% in 2021. National expenditures on public administration, national security, social affairs, and economic sectors will be decreased. Civil servant salaries will be kept equal to the rate in the Law on Financial Management 2020. 

Incentive policies for priority sectors such as agriculture, manufacturing, and SMEs will continue to be implemented as well as other tax exemptions. The Royal Government will prepare a budget to address the urgent and necessary needs during COVID-19 to support the economy. The Royal Government’s management system of taxation and customs and excise will continue to be improved, especially expanding to electronically. 

3. General Department of Taxation on Delaying the Implementation Deadline for E-Filing

On 16 June, in response to the request from private sector, the Ministry of Economy and Finance issued an announcement to inform that the Ministry has delayed the implementation deadline of the E-Filing system for three months (from June until August 2020). The E-Filing system will be implemented from September 2020 onward so that enterprises have more time to prepare to effectively use the system. In addition, the Ministry also mentioned different methods of filing in which taxpayers could choose for the E-Filing system.

In the meantime, taxpayers who have not prepared for the E-Filing system, can temporarily declare their monthly tax through the old tax declaration form and continue using Online-VAT Refund and Online-VAT Credit systems following Decision No. 001 issued on 09 January 2019 by the Ministry of Economy and Finance. Furthermore, taxpayers who have started using the E-Filing system can continue using this system as usual.

4. Royal Government of Cambodia Sub-decree on the Implementation of the Subsidy Programme for Poor and Vulnerable Families during the Fight Against COVID-19

On 12 June, the Royal Government of Cambodia issued Sub-Decree No. 88 to determine the policy and process to manage the subsidy for poor and vulnerable families. Families residing in Phnom Penh classified as level-1 will receive 120,000 Riels per month, and 52,000 Riels per family member. Children under five years old, disabled person, citizen who are 60 years or older or families with a HIV-positive member will receive 40,000 Riels each.  

Families classified as level-2 and reside in the outskirts of Phnom Penh Capital or in the countryside will received a reduced subsidy of between 16,000 Riels and 120,000 Riels. The President of the National Social Protection Council will determine the date and duration of the implementation.  

5. Ministry of Tourism Letter to the Municipal and Provincial Tourism Departments on the Renewal Fee of Tourism Licenses of Tour Guides for 2020

On 16 June, the Ministry of Tourism informed its departments in Phnom Penh, Siem Reap and Preah Sihanouk that the Ministry has received the approval from the Ministry of Economy and Finance to waive the renewal fee for tourism licenses for tour guides in 2020. The Ministry of Tourism outlined the following key points in its letter:  

1. Exemption of renewal fees for tour guide licenses at all levels for 2020. Businesses are still obliged to submit their renewal application for tour guide licenses during this exemption.  
2. This exemption will be implemented from 17 June 2020 until 31 December 2020.     
3. The application fee will be maintained for business who apply for new tour guide licenses in 2020.   
4. The Ministry will continue to impose a monetary fine for expired tour guide licenses and for those who have not complied with the Joint-Prakas on the Provision of Public Services and Monetary Fine; however, the renewal fee for the 2020 tourism guide license is still exempted.    

6. Ministry of Labour and Vocational Training Notification on the Provision of Subsidised Allowances to Employees in the Garment Sector (round 5)

On 16 June, the Ministry of Labour and Vocational Training confirmed that 7,612 employees from 8 suspended enterprises and factories of the garment sector will receive a message from Wing Specialized Bank about the subsidised allowance. Employees can withdraw the allowance at any branch of the nearest Wing agents by bringing their Khmer ID card and phone number. There will be no service fee required for the withdrawal. 

7. Ministry of Labour and Vocational Training Notification on the Provision of Subsidised Allowances to Employees in the Garment and Tourism Sectors (round 6)

On 16 June, the Ministry of Labour and Vocational Training confirmed that 22,332 employees from 91 suspended enterprises and factories of the garment and tourism sectors will receive a message from Wing Specialized Bank about the subsidised allowance. Employees can withdraw the allowance at any branch of the nearest Wing agents by bringing their Khmer ID card and phone number. There will be no service fee required for the withdrawal.