10 May 2018
CAMBODIA: Raft of Incentives Looks to Woo Small Businesses into Tax Registration
In a bid to woo the 95% of the country’s 510,000 micro, small and medium enterprises (MSMEs) that remain firmly in the informal sector, a raft of incentives is on offer to any that voluntarily register with the Ministry of Industry and Handicraft (MIH) and the General Department of Taxation (GDT) before 31 December 2018. Those that register with the GDT will be exempt from Corporate Income Tax (CIT) for two years regardless of the number of years they have already been in operation. MIH registrants, meanwhile, will be given free access to a range of market research resources, while their employees will be offered vocational training, including sessions on the use of new technology.
In an additional move, the Ministry of Economy and Finance is set to launch an online business and tax registration system. There are also plans to institute a two-year CIT exemption for any business that creates a substantial number of jobs or makes a major contribution to the economy.