This new Instruction establishes the guiding principles for manufacturers, importers, and distributors of alcoholic products and sugary beverages in Cambodia, in the context of providing prizes, and trade discounts.
Below are the salient provisions of the new Instruction:
Description | Details |
Prohibited Prize Offerings/ Activities [Article 1] |
o This activity must cease by 30 September 2026. o From 29 June 2026, impacted enterprises must cease ordering, importing, or producing new ring-pulls, bottle caps, or packaging that contain/place prizes in the product packaging.
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Trade discounts for alcoholic products and sugary beverages [Article 2] |
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Other prizes and benefits [Article 3] |
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Over the past few years, competition among alcoholic and sugary beverage companies in Cambodia has intensified. Marketing campaigns aimed at increasing sales have largely been driven by promotional activities such as ring-pull prizes, free goods, trade discounts, and other similar incentives. While these mechanisms help businesses remain competitive, they also create challenges from a tax perspective, particularly regarding the monitoring and implementation of the applicable tax treatment of such promotions.
This new Instruction provides much-needed guidance by clarifying what types of prize offerings and promotional activities are permissible. It also establishes limitations and benchmarks for determining what may be considered a reasonable level of prizes, trade discounts, and other incentives. Taxpayers intending to implement these types of incentives and marketing programs are encouraged to seek professional advice to ensure compliance with the applicable tax regulations, effectively manage potential tax risks, and identify any available tax planning opportunities.
As committed tax advisors to our clients, we welcome any opportunities to discuss the relevance of the above matters to your business.
