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Cambodia: Tax incentives for agriculture sector; other tax developments

Updates on VAT, tax recording procedures, and suspension of prepayment of tax on income

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january 23, 2026

The General Department of Taxation (GDT) in November 2025 released Prakas No. 962 MEF.Prk.GDT, providing tax incentives and relief to the agriculture sector.

The incentives apply to enterprises involved in the cultivation, production, domestic supply, or export of specific agricultural products, including paddy, rice, corn, soybeans, pepper, cassava, cashew nuts, rubber, Pailin longan, mango, banana, animal husbandry, aquaculture, and domestic palm oil products used as raw materials for animal feed. The incentives are valid until the end of 2027.

Read a January 2026 report prepared by the KPMG member firm in Cambodia, which also covers recent developments concerning:

  • State-borne value added tax (VAT) on basic food for daily livelihood
  • Procedures for recording and declaring taxes on transactions that occur and are recorded in the accounting records before payment
  • Suspension of prepayment of tax on income (PToI) until end of 2028

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