News

• 03 July, 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: 19 June - 03 July

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

1. Ministry of Economy and Finance Prakas on the Implementation of the Withholding Tax on Interest on Domestic and Foreign Loans borrowed by Banks and Microfinance Institutions 
 
On 19 June, the Ministry of Economy and Finance issued Prakas No. 525​ to reduce the interest on domestic and foreign loans borrowed by banks and microfinance institutions to relieve the burden for citizens’ and enterprises’ loan payments during COVID-19. 

• The withholding tax on interest for new loans is reduced to 5% between April and December 2020, 10% in 2021, and back to the normal rate in 2022 onward. 
• The withholding tax on interest for existing loans is reduced to 10% between April and December 2020, and back to the normal rate in 2021 onward. 

This Prakas also stated the list of supporting documents banks and microfinance institutions shall prepare to implement the above withholding tax exemptions. 

2. Law on Anti-Money Laundering and Financial Terrorism, and Law on Mutual Legal Assistance in Criminal Matters 

On 27 June, the Law on Anti-Money Laundering and Financial Terrorism and Law on Mutual legal Assistance in Criminal Matters were promulgated. 

The Law on Anti-Money Laundering and Financial Terrorism has 9 chapters and 47 articles. The  Cambodian Financial Intelligence Unit  will  enforce  the Law, under the management of the Unit’s  board  which  consists  of  6  State  institutions  including the Ministry of Interior and the National Bank of Cambodia. Money laundering crime carry prison sentences ranging from 2 to 5 years with 100 Million Riels to 500 Million Riels in fines. 

The Law on Mutual Legal Assistance in  Criminal Matters  has  6 chapters and 44 articles. The Ministry of Justice  will be the  central authority  and responsible for  requesting  support on behalf of  the  competent authorities  in  Cambodia  to  another  country  and  vice  versa.

3. Ministry of Commerce Prakas on Recognition of the Phnom Penh Chamber of Commerce Advisory Members 

On 25 June, the Ministry of Commerce issued Prakas No. 201 on the recognition of the Phnom Penh Chamber of Commerce advisory members for the 4th Mandate 1st Round. EuroCham has been recognised as an advisory member for the Chamber in the Prakas. 

4. Ministry of Economy and Finance Decision on the Implementation Date of the Royal Government’s Subsidy for Poor and Vulnerable Families during the COVID-19 Period  

On 17 June, the Ministry of Economy and Finance issued Decision No. 044 to inform that the Subsidy for Poor and Vulnerable Families during the fight against COVID-19 will be implemented for two months in June and July 2020. The subsidy will be disbursed on the fourth week of each month. Extension of the implementation period will be determined separately depending on the situation. 

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

On 23 June, the Ministry of Labour and Vocational Training confirmed that 12,760 suspended employees from 34 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. 

6. Ministry of Labour and Vocational Training Notification on the Provision of Subsidised Allowances to Suspended Employees in the Garment and Tourism Sectors (round 8) 

On 25 June, the Ministry of Labour and Vocational Training confirmed that 7,028 suspended employees from 44 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.