Welcome to this edition of DFDL’s Cambodia Law Update. In this issue we present Cambodian regulations and information touching on the following:
- Promulgation of the Law on Associations and Non-Governmental Organizations
- Recognition of Exclusive Rights to Use Trademarks
- Suspension of Tax Prepayment on Profit for Companies/Enterprises which Obtain Tax Incentives in the Securities Sector
- Procedures and conditions in requesting, providing and using Cambodian ID Cards
- Limitation of speed for vehicles
- Establishment and appointment of technical working group for the preparation of environmental code
- Promulgation of the Law on State General Budget Settlement for 2013 Management
❑ NON-PROFIT AND RELIGIOUS ORGANIZATIONS 2015
PROMULGATION OF LAW ON ASSOCIATIONS AND NON-GOVERNMENTAL ORGANIZATIONS, Royal Kram № NS/RKM/0815/010 (Royal Palace) 12 August 2015
This Royal Kram aims at guaranteeing the rights and freedoms in establishing associations and non-governmental organizations (“NGOs”) in the Kingdom of Cambodia, to protect their legitimate interests and to protect the public interests as well enhancing partnerships and cooperation between associations and NGOs with public authorities. This law determines the formalities to legally recognize associations and NGOs as well as to determine the relationship between associations and NGOs with public authorities for the development of Cambodian society. This law extends a scope of application to associations and NGOs, which are conducting activities in the Kingdom of Cambodia except for any separate stipulated provisions of law.
Under this law, establishment of domestic associations or NGOs requires that there be founding members, who are legal persons with Khmer nationality, and at least 3 persons 18 years or older. Domestic associations or NGOs must register with the Ministry of Interior. The statutes of domestic associations or NGOs must have substance in conformity with the Constitution and other existing laws. The Ministry of Interior will examine the requested documents of a domestic association or NGO, and will decide whether or not to accept the registration within 45 working days. The Ministry of Interior can deny registration of any domestic association or NGO, which has been found to have objectives and goals which may affect security, stability, and public order or may jeopardize national security, national unity, good culture, traditions, or customs of Cambodian national society. Any domestic association or NGO, which the Ministry of Interior decides not to approve for registration, has the right to appeal to the court.
A domestic association or NGO which is not registered will not be allowed to conduct activities in the Kingdom of Cambodia. Domestic associations and NGOs must notify in writing the information of every account which is to open its operation at a bank in the Kingdom of Cambodia to the Ministry of Interior and the Ministry of Economic and Finance within 30 days from the date of registration at the Ministry of Interior. Conditions, forms and procedures of establishment, and registration of domestic associations and NGOs for legal entities and foreigners must be determined by Prakas (declaration) of the Minister of Ministry of Interior. Any foreign association or NGO wishing to start a project in the Kingdom of Cambodia must register with the Ministry of Foreign Affairs and International Cooperation in the form of a memorandum of understanding.
All NGOs, foreign NGOs and foreign associations are required to maintain neutrality toward all political parties in the Kingdom of Cambodia.
Any association or NGOs whose activities affect or jeopardize the national security or are involved with money laundering, terrorism financing, terrorist offences, or any other criminal offences will be punished in accordance with the applicable criminal law of the Kingdom of Cambodia.
❑ INTELLECTUAL PROPERTY 2015
RECOGNITION OF EXCLUSIVE RIGHTS TO USE TRADEMARKS, Instructional Circular № 07 (RGC), 6 August 2015
This Circular of the Royal Government gives instructions on recognition of exclusive rights to use trademarks as follows:
- Exclusive rights to use trademarks on goods in the Kingdom of Cambodia will be carried out in compliance with the Law concerning Marks, Trade Names and Acts of Unfair Competition and Sub-decree No. 64 ANKr.BK, dated July 12 2006, on Implementation of the Law concerning Marks, Trade Names and Acts of Unfair Competition and other relevant applicable provisions.
- For imported goods in the Kingdom of Cambodia for non-commercial purposes or for use in the benefit of humanity, personal use, diplomatic missions, community, national and international organizations, technical cooperation agents of various governments, installment and further processing, experiment and scientific research, sample goods for display, agricultural production contract, private investment project, public investment or all types of second hand products, will not be subject to the scope of implementation in recording and filing of the permitted letter for imported goods bearing exclusive marks.
- For any restricted goods as specified in the applicable provisions, a permission letter from a competent ministry, institution, or the Royal Government of Cambodia must be obtained in order to import such goods bearing exclusive marks.
- End-users and redistribution outlets/depots may purchase goods from distributors in provinces, the capital or various areas in the Kingdom of Cambodia without any discrimination. Provided, however, that in the event that the competent ministries identify any entity taking action contrary to this instruction, its recognition of permission letter for exclusive rights to use marks will be nullified or the company may be punished as referred to in articles of the applicable law.
- The Ministry of Commerce shall issue Prakas on Determination of Detailed Procedures on Recording and Filling of the permission letter for imported goods bearing exclusive marks in compliance with applicable international agreements, provisions of the Law concerning Marks, Trade Names and Acts of Unfair competition, the sub-decree and relevant applicable provisions and in line with this Instructional Circular aimed at ensuring effectiveness for controlling the rights to import goods bearing exclusive marks and serving to benefit end-users and the general public in the Kingdom of Cambodia.
❑ TAXATION 2015
SUSPENSION OF TAX PREPAYMENT ON PROFIT FOR COMPANIES/ENTERPRISES WHICH OBTAIN TAX INCENTIVES IN THE SECURITIES SECTOR, Prakas № 855 (MEF) 24 July 2015
This Prakas temporarily allows the suspension of tax prepayment on monthly profit of companies/enterprises which have obtained tax incentives in the securities sector in line with Sub-decree No. 01 ANKr.BK, dated 08 January 2015, on Tax Incentives in the Securities Sector. The duration of suspension of tax prepayment on profit will be in line with the period of receiving tax incentives in the securities sector.
The suspension of tax prepayment on profit will begin from the date on which companies/enterprises obtain permission for issuing and selling securities to the public from the Securities and Exchange Commission of Cambodia so as to register the securities trading at the permitted securities market. Companies/enterprises must notify the General Department of Taxation through the Securities and Exchange Commission of Cambodia in order to suspend the tax prepayment on profit in accordance with this Prakas.
During the period of tax incentives in the securities sector, if the General Department of Taxation and/or the Securities and Exchange Commission of Cambodia finds that there is any irregularity in relation to tax issues, the tax incentives will be terminated in accordance with article 8 of Sub-Decree No. 01 ANKr.BK, dated 08 Ja
nuary 2015.
❑ ADMINISTRATION 2015
PROCEDURE AND CONDITIONS FOR REQUESTING, PROVIDING AND USING CAMBODIAN ID CARDS, Prakas № 6375 (MOI), 29 July 2015
This Prakas determines procedures and conditions for requesting, providing and using Cambodian ID cards for the purpose of ensuring the implementation of obligations, rights and advantages of people as determined by the law. The Ministry of Interior gives competence to the General Department of ID to direct, promote, instruct and facilitate the work regarding provision of ID cards.
The governors of the Capital and provinces are responsible for implementing works related to providing Cambodian ID cards within their jurisdictions and being signers on the name lists of people who have fulfilled the formalities to request for Cambodian ID cards. Cambodian ID cards are to be issued within 30 working days following the date of fulfilling the formalities of requesting ID cards.
❑ TRANSPORTATON 2015
DETERMINATION OF SPEED FOR VEHICHLES, Sub-decree № 86 (RGC) 8 July 2015
This Sub-decree aims at determine the maximum speed for all types of vehicles to reduce the number of land traffic accidents. The objectives of this sub-decree are: (a) keep safety for land traffic; (b) prevent/curb driving of vehicles exceeding the limited speed; and © promote awareness and participation from all circles in order to reduce land traffic accidents. This sub-decree applies to vehicles of all types in the Kingdom of Cambodia.
❑ ENVIRONMENT 2015
ESTABLISHMENT AND APPOINTMENT OF TECHNICAL WORKING GROUP FOR THE PREPARATION OF ENVIRONONMENTAL CODE, Decision № 014 (MOE), 13 July 2015
It is decided to establish the Technical Working Group for the Preparation of the Draft Environmental Code of the Kingdom of Cambodia led by H.E. E Vuthy, Advisor attached to Ministry of Environment, Deputy Director General of the General Department for Administration and Finance.
The Technical Working Group for the Preparation of Draft Environmental Code has the right to use the seal of the Ministry of Environment, to receive technical and financial support from development partners, and to use the budget of the Ministry of Environment in necessary cases.
❑ FINANCE 2015
PROMULGATION OF THE LAW ON SETTLEMENT OF GENERAL BUDGET FOR 2013 MANAGEMENT, Royal Kram № NS/RKM/0715/008(Royal Palace) 29 July 2015
This Royal Kram transmits the Law on Settlement of General Budget for 2013 Management, which has been approved by the National Assembly and the Senate.
DFDL Contact:
Alex Larkin
Senior Adviser
alex.larkin@dfdl.com
*The information contained in this legal update is provided for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
