Cambodia: New guidance on tax incentives for investment projects
Under new guidance, investment incentives available to investment projects have been updated significantly
New guidance on tax incentives for investment projects
Sub Decree No. 139 ANK.BrK (dated 26 June 2023) on the Implementation of the Law on Investment includes detailed, updated procedures on the registration of investment projects and a range of new investment incentives available to investors.
Under the new guidance, investment incentives available to investment projects have been updated significantly:
- While the basic tax incentives available remain the same—Tax on Income (ToI) Exemption and Accelerated Depreciation—the period of the ToI Exemption is now defined based on the investment activity category in which the qualifying investment project falls, which can be broadly defined as high, medium or low technology. The sub decree includes clear guidance on which activities fall into which investment activity category.
- Greater clarity is also provided with respect to custom duty incentives and additional incentives.
- There are also clear provisions which outline when an investment expansion project can receive additional incentives.
Read an August 2023 report [PDF 225 KB] prepared by the KPMG member firm in Cambodia
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