Haing is a talented individual committed to quality and ethical professions in the field of accounting and auditing. She has been involved in tax and audit services for more than 12 years with international and local accounting firms and banking. She qualified as a public accountant from the Institute of Public Accountants in Australia and was awarded a membership from the Institute of Financial Accountants in the UK and received her Certified Accounting for Technician (CAT) from ACCA, UK and got a Master in Finance from the Nantes University of France. Additionally, She speaks fluently in Chinese and English.
Keat is a lead partner for this engagement and he has more than 15 years of experience in an international audit firm which already engaged in garment factories, banking, telecom, listed companies, microfinance, hotels & restaurants, and NGOs.
Mr. Heng is a fellow member of the Association of Chartered Certified Accountants (“FCCA”) UK and a member of the Kampuchea Institute of Certified Public Accountants and Auditors (“KICPAA”) in Cambodia as a local CPA. He got an ACCA qualification from the UK and a Master of Finance as well. He is fluent in English and Khmer.
Cambodia’s new investment law offers tax incentives
August 5, 2024
Cambodia’s new investment law offers tax incentives to investors. The Cambodian government has enacted this new investment law designed to provide substantial benefits to investors, with a focus on tax incentives. This move aims to attract and stimulate investment across various high-potential sectors.
The new law offers tax incentives for the following sectors:
1. High-Tech Industries: Companies involved in innovation or research and development (R&D).
2. Innovative or Competitive New Industries: Enterprises engaged in high value-added manufacturing.
3. Global Supply Chains: Industries supplying to regional and global production networks.
4. Electrical and Electronic Industries: Businesses operating within the electrical and electronics sectors.
5. Mechanical and Machinery Industries: Firms involved in mechanical and machinery production.
6. Spare Parts, Assembly, and Installation: Industries focused on the manufacturing and installation of spare parts.
7. Special Economic Zones: Investments within designated special economic zones.
8. Digital Industries: Companies in the digital technology sector.
9. Environmental Management and Protection: Industries dedicated to environmental protection, biodiversity conservation, and the circular economy.
10. Green Energy: Investments in technology that contribute to climate change adaptation and mitigation.
Summary of Basic Incentives for Qualified Investment Projects (QIP):
QIP investors can choose between two main incentive options:
Option 1: Income Tax Exemption
– Income Tax Exemption: 3 to 9 years, based on sector and investment activities, starting from the first income.
– Post-Exemption Tax Rates: After the exemption period, a gradual tax rate applies: 25% for the first two years, 50% for the next two years, and 75% for the final two years.
– Additional Benefits:
– Prepayment tax exemption during the income tax exemption period.
– Minimum tax exemption, subject to an independent audit.
– Export tax exemption, unless restricted by other laws.
Option 2: Special Depreciation
– Special Depreciation: Accelerated deduction of capital expenditure as per current tax regulations.
– Expense Deduction: Up to 200% of eligible expenses for up to 9 years, depending on sector and investment activities.
– Additional Benefits:
– Prepayment tax exemption for a specified period, based on sector and investment activities.
– Minimum tax exemption, subject to an independent audit.
– Export tax exemption, unless restricted by other laws.
Additional Incentives (Applicable to Both Options):
– Export QIP and Supporting Industry QIP: Exempt from customs duties, special taxes, and VAT on imports of construction materials, equipment, and production inputs.
– Domestic-Oriented QIP: Exempt from customs duties, special taxes, and VAT on imports of construction materials and equipment. Incentives for production inputs will be detailed in future regulations.
This legislative development underscores Cambodia’s commitment to creating a favourable business environment encourages technological advancement and sustainable practices.
The National Bank of Cambodia accredits Kreston Cambodia to provide banking and microfinance audits. This accreditation reflects the firm’s dedication to maintaining the highest standards of financial oversight and support for the country’s economic growth.
If you would like to speak to one of our experts in Cambodia, please get in touch.
