Date of publication: 27-02-2020
Category: Legal updates
On February 17th, 2020, the government issued a Prakas No. 159 SHV.BrK សហវ.ប្រក concerning the instruction of implementing sub-decree on tax incentives for small and medium enterprises in priority sectors. The purpose of this Prakas is to provide instruction on the procedure to apply for tax incentives for small and medium enterprises in priority sectors as stipulated in Sub-Decree no. 124 ANKr.BK issued on October 02, 2018.
In particular, to apply for the incentive, for newly registered companies, owners may apply online through the website of the General Department of Taxation (“GDT”) at http://www.tax.gov.kh. Otherwise, the owners may complete the SMEs TIC form provided by tax administration and submit to the GDT along with other tax registration documents. For the existing companies, owners may also apply for tax incentives online or fill in the SMEs TIC form, and submit at the office of the GDT or at the Khan and Provincial tax branch. The GDT will make a decision over the request and inform to the requesting companies between 7 to 10 days after receiving the request.
It is important to note that even though the enterprises could obtain such tax incentives, the enterprises are still required to prepare accounting records as well as to file a tax return of annual income tax and other tax declarations as required by the applicable tax laws and regulations.