Welcome to this edition of DFDL’s Cambodia Law Update. In this issue we present Cambodian regulations and information touching on the following:
- Instruction on application for tax registration or update of enterprise ’s information pursuant to the self-declaration regime (Form 101)
- Modification of fiscal stamp tax table
- Extension of deadline in declaring patent tax payment of enterprise related to tax declaration of self-declaration regime for the year 2015
- Urbanization of the Capital, municipalities and urban areas
- Provision of administrative services of the Ministry of Interior
- Promulgation of the Law on Organization and Functioning of the National Election Committee
- Organization and functioning of the Ministry of Environment
- Changing the composition of secretariat of the Labor Advisory Committee
- Online registration of tourism-related licenses
■ Taxation 2015
Instruction on Application for Tax Registration or Update of Enterprise’s Information Pursuant to the Self-declaration Regime (Form 101), Instruction № 2439 (GDT) 21 April 2015
The General Department of Taxation issued an Instruction on application for tax registration or update of enterprise’s information related to the self-declaration regime (Form 101). Pursuant to this Instruction, an enterprise shall be required to provide the following information: (1) enterprise, (2) shareholders, (3) enterprise branch, and (4) estimation of turnover.
The information required on the enterprise consists of: (1) details on tax registration, (2) head office address, (3) main business address, (4) registration documents issued by Ministry of Commerce and other ministries-institutions, (5) form of business, (6) business activities, (7) employee information, (8) bank account information, (9) patent tax, (10) registration tax, and (11) company logo/business sign.
The information on shareholders required includes the shareholder’s information, shareholder’s address, and company representative information for legal person.
Modification of Fiscal Stamp Tax Table Notification №40 (RGC) 31 March 2015
This sub-decree aims to determine and modify the fiscal stamp tax related to legal standard letters and posters as detailed in the table of this sub-decree. The fiscal stamp tax shall not apply to any posters which have published for non-profit purposes such as logos for social education, environmental prevention, stopping family violence, protection of forest and wild animals, traffic law education, and the logos of national and international non-governmental organizations, and the logos of the state institutions.The implementation of this sub-decree can be determined in detail or further instructed by the Minister of Economy and Finance. Sub-decree № 76 ANKr.BK, dated 11 October 1995, on Improvement and Supplement to the Sub-decree on Collection of Fiscal stamp tax shall be abrogated.
Deadline in Declaring Patent Tax Payment of Enterprise Pursuant to the Self-declaration Regime for the Year 2015 Notification № 2546 (MEF) 27 April 2015
The General Department of Taxation informs all owners of enterprises subject to the self-declaration regime for tax payment declarations, that in the year 2015 enterprises registered for tax registration before November 2014 must update the required information of enterprises attached with other relevant documents, and must declare and pay patent tax in the same time. This measure makes comes into force as some enterprises do not have enough time for the patent tax payment declaration.
In order to give an opportunity for any enterprises that are late completing the tax payment declaration or lack relevant documents, to have sufficient time in preparing related documents for updating the enterprise’s information, the General Department of Taxation informs the delay for the year 2015 patent tax payment declaration until 31 May 2015.
■ Construction 2015
Urbanization of the Capital, Municipalities and Urban Areas, Sub-decree № 42 (RGC), 3 April 2015
The Royal Government has issued the Sub-decree on Urbanization of the Capital, Municipalities and Urban Areas. This sub-decree aims to ensure: (1) the quality, effectiveness, sustainability and equity of urbanization; (2) the protection of rights, and public and private interests during development, conservation and construction; (3) the promotion of cultural values, green development, and alleviating climate change, as well as increasing preventive measures against disasters; and (4) caring for the security, welfare, and convenience for all individuals including the physically challenged, the elderly, and children.
The purpose of this sub-decree is to regulate urbanization within the capital, municipalities, and urban areas in the Kingdom of Cambodia in order to attain: (1) adequate functions to ensure health, attractiveness, safety, order, and convenience of accommodation, employment provision, education, relaxation, and commuting; (2) the promotion of socio-economic development, environmental protection, national defense, food security, and preservation of cultural treasures; (3) the promotion of quality and effectiveness in improvement, development, and protection of public infrastructures in the capital, municipalities, and urban areas; (4) balance between development and conservation as well as the relationship between urban areas and rural areas based on special geographical features of each region; and (5) clear guidance that can predictably lead to development of the capital, municipalities, and urban areas.
This sub-decree governs the applications on public state land and private state land, including individually private land in the capital, municipalities, and urban areas in the Kingdom of Cambodia, except for special conservation areas, that are set in other separate provisions.
Services of urbanization shall be in compliance with the following principles: (i) involves participation from all relevant stakeholders; (ii) consistent with principles of decentralization and de-concentration; (iii) follow the hierarchy and two-way approach (bottom up/top down) in all decisions; (iv) has the cooperation of all relevant specialists and local authorities; (v) uses physical urban planning as a basis for the development of the cities, the conservation of the city, the development of land, the development of infrastructures, and all construction works as well as integration so that land can be used properly, according to its objectives, effectively, sustainably, balanced, and equitably.This sub-decree describes the mechanisms for the development of a Spatial Plan, a Master Plan, and a Land Use Plan at the national and sub-national levels listed below: (1) at the national level, there shall be a National Committee on Spatial and Urban Planning, which shall initiate the development of a Spatial Plan for national and regional levels; and (2) the sub-national levels as detailed in article 6 of this sub-decree. These mechanisms at the sub-national level mentioned above must cooperate with the National Committee on Spatial and Urban Planning in order to achieve democratic development at the sub-national level according to their respective jurisdiction in the development of an Urban Physical Plan.
The technical guidelines and detailed procedures in formulating a Municipal Land Use Master Plan and Municipal Land Use Plan, and an Urban Detailed Plan, as well as procedures for dealing with complaints shall be determined by the National Committee on Spatial and Urban Planning. Use of land and/or buildings that occurred before this sub-decree entered into force shall be allowed to continue according to the existing conditions provided it does not cause danger or is hazardous to public well-being, safety, the environment, history, and culture. The conditions stipulated in this sub-decree shall apply
only on land use master plans, land use plans, and/or detailed urbanization plots made after this sub-decree has been promulgated.
■ Administration 2015
Provision of Administrative Service of the Ministry of Interior, Joint Prakas № 3666 (MOI & MEF) 18 March 2015
This Prakas intends to allow the Ministry of Interior to implement revenue collection from the administrative service fees for the benefit of the national budget. The administrative service to be provided by the Ministry of Interior shall be prepared from the administrative service series which detailed the price, service, period of the provision of service and validity in accordance with the type of each administrative service as stated in the annexed table attached to this inter-ministerial Prakas. The Ministry of Interior must post the notice in public, particularly at the place where the service is to be provided regarding the administrative service standard such as the table of administrative service series, the document forms, and the procedure for providing administrative service related to the above mentioned revenue collection.
The Ministry of Interior must prepare a place for accepting complaints/claims which may occur unexpectedly, especially in the case of implementing an inadequate standard of service, or charging service fees exceeding the determined fees, or being late in providing such service. The Ministry of Interior has the duty to collect the revenue from the administrative service, and to be responsible in managing the collected revenues, and paying the revenues to the national budget. All revenue collection from the administrative service fees are required to use the receipt of payment permitted by the Ministry of Economy and Finance in line with the Prakas № 272 SHV-BrK, dated 17 March 2011, on the Implementation of Receipt of Payment, and the Instructive Circular № 005 SHV, dated 17 March 2011, on the Management of Receipt of Payment, issued by the Ministry of Economy and Finance.
The Ministry of Interior shall determine the specific place and assign permanent officers to work at the one window service to provide the administrative service to clients in a timely manner.
■ Election 2015
Promulgation of the Law on Organization and Functioning of the National Election Committee, Royal Kram № NS/RKM/0315/002 (Royal Palace) 26 March 2015
This Royal Kram promulgates the Law on Organization and Functioning of the National Election Committee. This Law aims to determine the organization and functioning of the National Election Committee in order to organize, manage and govern the election, the election of members of the Senate, the election of the national assembly, as well as other elections in accordance with the determination of the law. The National Election Committee shall have the commission for the capital, provinces for organizing the election, the commune/Sangkat commission for organizing the election and the office election commission to implement their respective duties.
The National Election Committee shall implement its competence in an independent and neutral manner so as to ensure the election is conducted in a free, proper and fair way in compliance with political pluralism liberal democratic principles. Members of the National Election Committee and members of Election Commissions for all levels shall have neutral and impartial position in implementing the election works.
■ Environment 2015
Organization and Functioning of the Ministry of Environment, Sub-decree № 55 (RGC), 4 May 2015
This sub-decree aims to determine the mission, organization and functioning of the Ministry of Environment and other entities under the supervision of the Ministry. The Ministry of Environment is assigned by the Royal Government of Cambodia to fulfill its mission in leading and governing the protection of environment, the biodiversity conservation, the use of natural resources in an appropriate and sustainable manner for the supreme long term interest of all Cambodian people and for all future generations in the Kingdom of Cambodia.
■ Labor 2015
Adjustment to Secretariat Composition of the Labor Advisory Committee, Prakas № 113 (MoLVT), 19 March 2015
This Prakas aims to adjust the composition of the Secretariat of the Labor Advisory Committee. The committee is composed of 21 members and directed by H.E. Sat Samot, Under-Secretary of State.
The secretariat shall have the roles and duties to coordinate the study and research of the problem of a minimum wage suitable for workers, to propose a budget plan and activity plan for implementation of the labor advisory committee, to make relations and cooperate with social partners and development partners, and to facilitate with labor-related international organizations and technical assistance.
■ Tourism 2015
Online Registration of Tourism-Related Licences
In an effort to make it easier, the Cambodian Ministry of Tourism launched an online registration system for the following licences:
- Tourism license for an Apartment;
- Tourism license for an Entertainment;
- Tourism license for a Guesthouse;
- Tourism license for a Hotel;
- Tourism license for a Resort;
- Tourism license for a Restaurant;
- Tourism license for a Tourist Guide;
- Tourism license for a Tourism Sport;
- Tourism license for a Transportation;
- Tourism license for a Travel Agent; and
- Tourism license for a Spa and Massage.
The applicant must first register online to create a user account, which subsequently allows the applicant to complete the online registration forms. Following completion of the online registration, the applicant still needs to submit the relevant documents with the tourism office. Renewals of the above licences can also be done electronically.
Head of Regulatory & Compliance; Senior Adviser, Corporate & Commercial Practice Group
* 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.