26 AUGUST - 02 SEPTEMBER | KEEPING YOU INFORMED: RECENT ANNOUNCEMENTS BY THE ROYAL GOVERNMENT
- 02 September, 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: 26 August - 02 September
(English summaries provided by EuroCham Cambodia, subject to corrections by relevant authorities)
1. Ministry of Economy and Finance Prakas on Capital Gains Tax
On 1 April, the Ministry of Economy and Finance issued the Prakas No. 346 on Capital Gains Tax. This Prakas defines “Capital” as the property, lease, investment assets, business reputation, intellectual property, and foreign currency. “Capital gains” refers to a taxable income derived from the generation of income from the sale or transfer of capital minus the allowable expenses. This capital gain is taxed at a fixed rate of 20%.
The price and cost of the property shall be defined as follows:
- Price of a property shall be based on the price of sale/purchase agreement and other supporting documents. If the tax administration finds that the sale price is lower than the market price, the tax administration shall be entitled to reassess the sale price.
- Cost of a property includes the cost of the property when it is bought and the expenses incurred during its purchase or, occupation, sale, or transfer.
Once the property price is determined, taxpayers are permitted to choose one of the two methods to calculate capital gains:
- Determination-based expense deduction
- Actual expense-based deduction
Capital gains tax shall be calculated by multiplying the capital gains by the fixed tax rate of 20%.
**Attached with unofficial translation provided by EuroCham**
2. Royal Government of Cambodia Sub-Decree on Determining the Types, Procedures for Granting Permit or License to Intermediaries and Individuals Providing E-Commerce Services and Exemptions
On 27 August, the Royal Government of Cambodia issued the Sub-decree on Determining the Types, Procedures for Granting Permit or License to Intermediaries and Individuals Providing E-Commerce Services and Exemptions. This Sub-decree defines the exemption, types, procedures, and conditions for the issuance of licenses and certificates of trust in e-commerce for the purpose of governing e-commerce operations in Cambodia and internationally.
A business licence is required for an individual, private enterprises, legal entities and branches of foreign companies that operate e-commerce activities in the Kingdom or offer services from Cambodia to overseas or from overseas to Cambodia. The Licenses for e-commerce services must be granted to the following legal entities and branches of foreign companies that will conduct e-commerce transactions and activities:
- E-Commerce website services;
- E-Commerce platform services;
- Online marketing services;
- Online auction website services;
- Other similar services provided through software or smart devices for the promotion of e-commerce.
In addition, the sub-Decree also outlines that an electronic business certificate must be issued to the individual persons or private enterprises who run electronic business in the Kingdom, including those who use social media or electronic systems as a means of supplying or buying goods and/or services. The validity of the electronic business certificate lasts two years from the date of issuance of the license by the Ministry of Commerce while the e-commerce license is valid for three years.
3. Ministry of Health Notification on COVID-19 testing fee payment mechanism and diversion of deposit to the foreign travellers to Cambodia
On 31 August, the Ministry of Health issued a notification on COVID-19 testing fee payment mechanism and returning of deposit, as follows:
- All foreign travellers shall pay 100 USD for each COVID-19 test. This amount will be deducted from their bank deposit;
- The Ministry of Health will return the remaining deposit to each passenger in 3 days after the second COVID-19 test shows a negative result;
- Foreign travellers (who are sponsored) shall pay 100 USD for their second COVID-19 test in addition to their hotel reservation fee.
4. Royal Government of Cambodia Sub-Decree on the Organization and Functioning of the National Commission for Consumer Protection
On 27 August, the Royal Government of Cambodia issued the Sub-decree on the Organization and Functioning of the National Commission for Consumer Protection. This Sub-decree aims to strengthen and promote the effective enforcement of the Law on Consumer Protection and trading in good faith. According to this Sub-decree, the National Commission for Consumer Protection shall have the following roles and duties:
- Prepare and publish the strategic policy and plans in relation to the Law on Consumer Protection;
- Propose to the Royal Government to review or amend any law, regulations related to consumer protection if necessary;
- Request for comment or decision from the Royal Government on the enforcement of the Law on Consumer Protection;
- Review and resolve in case the provisions prepared by any competent regulators conflict with the provisions prepared by other regulators;
- Provide consultation to consumer associations and organizations in relation to consumer protection;
- Review and decide on the rules and procedures which are necessary for enforcement of the Law on Consumer Protection; and etc.
5. Royal Government of Cambodia Sub-Decree on Public Holiday Calendar for Civil Servants, Employees and Workers for 2021
On 26 August, the Royal Government of Cambodia issued the Sub-Decree No. 131 stating public holidays for civil servants, employees, and workers for 2021. The Ministries and institutions responsible for international relations shall maintain permanent staff to handle the works. The total number of public holidays for 2021 is 21 days.
6. Ministry of Labour and Vocational Training Notification on the Provision of Subsidised Allowances to Suspended Employees in the Garment and Tourism Sectors (Round 27)
On 02 September, the Ministry of Labour and Vocational Training confirmed that 14,601 suspended employees from 51 enterprises and factories of the garment and tourism sectors will receive a message from Wing (Cambodia) Specialised Bank about their subsidised allowance. Employees can withdraw the allowance at any Wing branch by bringing along their Khmer ID card and phone number. No service fee is required for the withdrawal.
7. Ministry of Labour and Vocational Training Notification on the Provision of Subsidised Allowances to Suspended Employees in the Garment Sector (Round 26)
On 26 August, the Ministry of Labour and Vocational Training confirmed that 5,231 suspended employees from 13 enterprises and factories of the garment sector will receive a message from Wing (Cambodia) Specialised Bank about their subsidised allowance. Employees can withdraw the allowance at any Wing branch by bringing along their Khmer ID card and phone number. No service fee is required for the withdrawal.