- Notification on enterprise information update for enterprises and companies under the authority of the Department of Large Taxpayers;
- Implementation of Sub-decree № 40 ANKr.BK, dated 31 March 2015, on adjustment to the stamp tax tariff;
- Notification of adjustment to the base daily wage in relation to fines imposed under the penal provisions of the Labor Law;
- Announcement on employment of foreign labor working in establishments in the Kingdom of Cambodia;
- Notification on procedure for fulfillment and adjustment to the customs declaration on imported goods through the temporary admission regime; and
- The launch of Cambodia Industrial Development Policy 2015-2025.
❑ TAXATION 2015
NOTIFICATION ON ENTERPRISE INFORMATION UPDATE FOR ENTERPRISES AND COMPANIES UNDER THE AUTHORITY OF the DEPARTMENT OF LARGE TAXPAYERS, Notification № 7487 (GDT) 23 September 2015
In compliance with the Law on Taxation and Prakas No. 1139 SHV.PK on Tax Registration, dated 9 October 2014, of the Ministry of Economy and Finance, the General Department of Taxation (GDT) informs directors and owners of enterprises and companies under the authority of the Department of Large Taxpayers that for enterprises and companies registered at the Tax Department prior to 1 November 2014, which have not yet completed the tax registration update process, they must do so by 15 November 2015.
For enterprises and companies which fail to update their enterprise information by the above deadline, from 16 November 2015 onwards, the General Department of Taxation may take certain measures as follows:
- To invalidate VAT certificate registered prior to 1 November 2014 (VAT certificate by old system);
- Not accept requests for input tax credit or request to VAT refund;
- Ask for cooperation with the General Department of Customs and Excise to cease the export-import operation;
- Ask for cooperation with the Council for the Development of Cambodia to postpone requests to import raw materials, machineries and equipment; and
- Other measures in accordance with applicable law.
IMPLEMENTATION OF SUB-DECREE № 40 ANKr.BK, DATED 31 MARCH 2015, ON ADJUSTMENT TO STAMP TAX TARIFF, Prakas № 982 (MEF), 18 August 2015This Prakas aims to ensure the effectiveness and effect of the management and collection of stamp tax revenues for the benefit of the national budget. The objective of the Prakas is to determine the rules and procedures for management and collection of stamp tax revenues on legal letters and posters in accordance with the applicable laws and regulations.
This Prakas extends its scope of implementation to legal letters and posters which are required to pay stamp tax in compliance with Sub-decree № 40 ANKr.BK, dated 31 March 2015, on amendment to the stamp tax tariff. Prakas № 037 PrK.KHV, dated 22 October 1991, on Instruction for implementation of the sub-decree on stamp tax collection and other provisions which are contrary to this Prakas will be deemed abrogated.
❑ LABOR 2015
AMENDMENT TO THE BASE DAILY WAGE IN ACCORDANCE WITH THE PENAL PROVISIONS IN CHAPTER 16 OF THE LABOR LAW, Inter-ministerial Prakas № 377 (MoLVT and MOJ), 14 September 2015
The Ministry of Labor and Vocational Training, and the Ministry of Justice decided to adjust the base daily wage from the amount of 8,000 (eight thousand) Riel to 40,000 (forty thousand) Riel. The base daily wage, which has been amended, is the determined level for calculation of fines in accordance with the penal provisions in Chapter 16 of the Labor Law.
ANNOUNCEMENT ON APPLICATION FOR FOREIGN LABOR (QUOTA) AND FOREIGNER WORK PERMIT, Notification № 272 (MoLVT), 16 September 2015
This announcement aims to inform the owners and directors of enterprises and establishments and foreigners as stated in Article 1 of the Labor Law that, with reference to Articles 261, 264 and Article 265 of the Labor Law, and Prakas № 196 KB/BrK on Employment of Foreign Labor and Prakas No. 195 KB/BrK on Foreigner Work Permit and Foreigner Employment Card, dated 20 August 2014, owners and directors of enterprises and establishments who are in need of employing foreign labor (quota), must apply for quota at the Ministry of Labor and Vocational Training or Department of Labor and Vocational Training for the next year by no later than the end of November of each year.
The announcement further states that owners and directors of enterprises and establishments who are employing foreign labor, and foreigners who come to do business in Cambodia, must apply for work permits and employment cards for foreigner at the Office of Foreigner Inspection of the Department of Employment and Labor and extend the validity of work permits and employment cards by no later than the end of March of each year.
For enterprises and establishments in the municipalities-provinces, the owners and directors are required to apply at their municipal-provincial department of labor and vocational training. In the event of failure to comply, the Ministry of Labor and Vocational Training has authority to take measures to impose penalties in accordance with the penal provisions of Chapter 16 of the Labor Law.
❑ IMPORT – EXPORT 2015
NOTICE ON PROCEDURE FOR FULFILLMENT AND ADJUSTMENT TO CUSTOMS DECLARATION ON IMPORTED GOODS THROUGH THE TEMPORARY ADMISSION REGIME, Notification № 1339 (GDCE) 23 September 2015
The General Department of Customs and Excise of Cambodia has determined certain procedures for fulfillment and adjustment to customs declaration on imported goods through the temporary admission regime, to include the following:
- Customs Declaration when goods imported:
Make a customs declaration through/by the temporary admission regime, expansion regime “5100” on 100% of the customs value. The customs declaration must be made in accordance with the final importation regime after the importation by the temporary admission regime, “4051” expansion regime/form on 20% of the customs value for the tax and excise obligation per year.
Update the results of examination on the two customs declarations, both the temporary admission regime and the final importation regime after the importation by the temporary admission regime.
- Correction / Adjustment to Customs Declaration
Per request of the customs broker or the declarant, asking for performing the tax and excise obligation to be paid for next year in accordance with the applicable law and regulations, the customs officer in charge of interrogating/asking for information must make adjustment to the customs declaration by/through the final import regime after the importation by the temporary admission regime, “4051” expansion regime/form by adding to the 20% customs value, specifically it is required to adjust the customs value from 20% to 40% for an additional one year. Updating and adjustment in the examination result must be made in the ASYCUDA System.
The adjustment is to be implemented for the following year regarding the above procedures until the tax and excise obligation is paid in full.
A receipt for vehicles will be issued when the obligation of tax and excise is fully paid in accordance with law and regulations, and the customs procedures in force.
- Cancellation and Adjustment/Correction of Customs Declaration
For customs declarations already registered in accordance with the final import regime after importation by temporary admission, (“4051” expansion regime/form) to be created subsequently in accordance with the year which has the number of customs declaration exceeding one, such declaration must cancel the former registered customs declaration by keeping only the customs declaration which has been created more recently.
The Launch of Cambodia Industrial Development Polic
Following the adoption of the Cambodia Industrial Development Policy (IDP) 2015-2025 in March 2015, the Council for the Development of Cambodia (CDC), in cooperation with the Supreme National Economic Council (SNEC), officially launched the IDP on 26 August 2015, presided over by Samdech Akka Moha Sena Padei Techo Hun Sen.
The launch marked a key milestone in the implementation of the IDP and towards further integration into the ASEAN Economic Community by the end of 2015. The IDP addresses five priority industrial sectors as follows:
- New industries or manufacturing with high value-added, creative and highly competitive products that focus not only on consumer products but also on production equipment;
- Small and medium size enterprises (SMEs) in all sectors, particularly those involved in the production of pharmaceuticals, medical equipment, construction materials, export packaging, furniture and industrial equipment;
- Agro-industrial productions for export and domestics markets;
- Supporting industries to the agricultural, tourism and textile sectors as well as industries that link with global and regional supply chains such as garments, spare parts and other semi-finished products; and
- Industries that serve regional production lines such as information technology and telecommunications , energy, heavy industries, green technology and cultural/historical/traditional handicrafts.
The IDP sets key policy measures and action plans for two main objectives, which are the promotion of investment and the development of special economic zones (SEZs). To achieve these aims, the CDC is mandated to carry out policy reform including, amendments to current investment laws and regulations, and the adoption of a new law on SEZs by early 2016.
The policy making and amendments to investment laws will be aimed at reviewing the criteria for selecting qualified investment projects, further strengthening a favorable investment environment, considering additional investment incentives and reinforcing institutional capacity, among other things.
The new law on SEZs will be developed with a view towards continuing the development of SEZs in provinces, promoting hubs for SMEs, developing industrial corridors and encouraging competition among SEZs.
To read the full English version of the Cambodia Industrial Development Policy (IDP) 2015-2025, please visit the CDC website here.
* 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.