2020 28 April

Cambodia Legal Update: Ministry of Tourism Issues Notification on Government’s Additional Measures Towards Certain Tourism Enterprises Seriously Impacted by COVID-19

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Following the press release on the instructions of the Royal Government of Cambodia on further measures to help the private sector and employees severely affected by Covid-19 (Round 2 and 3) and Instruction 045/20 issued by the Ministry of Labour and Vocational Training (“MLVT”) dated 17 April 2020, on the suspension of employment contracts and contribution payments to the National Social Security Fund (“NSSF”) for certain enterprises in the garment and tourism sectors (“Instruction 045/20”), the Ministry of Tourism has issued Letter 011, dated 17 April 2020, providing notification on additional measures to support enterprises and employees in certain aspects of the tourism sector (“MOT Letter 011”).
 
MOT Letter 011 instructs all Municipal/Provincial Departments of Tourism to disseminate information regarding government support for certain enterprises facing serious difficulty as a result of COVID-19, particularly with regards to the following:

  1. Extend the exemption for all monthly tax payments for hotels, guesthouses, restaurants and travel agents, which have registered with the General Department of Taxation and are located in Phnom Penh, Siem Reap, Sihanoukville, Kep, Kampot, Bavet or Poipet, for a period of three months, from March until May 2020. These businesses are obligated to file monthly tax returns and use E-VAT during the exemption period.
  2. While the above taxpayers needed to have submitted their annual income tax returns for 2019 by 31 March 2020, the related tax payments may be made in monthly instalments through to November 2020.
  3. To avoid the termination of lease agreements for lessees experiencing difficulties in making lease payments, facilitate and encourage lessors to reduce or extend lease payments.
  4. Inform all eligible enterprises (hotels, guesthouses, restaurants and travel agents located in Phnom Penh, Siem Reap, Sihanoukville, Kep and Kampot) who have suspended or will suspend employment contracts, that they must follow the formalities of the MLVT or Provincial Department of Labour and Vocational Training where the enterprise is located in order for suspended employees to be eligible to receive government subsidies of USD 40 per month for a period of up to two months without requiring employees to attend a soft skills training course, as mentioned previously by the Government. In addition to the government subsidy, the relevant enterprises may provide additional benefits to employees based on its ability, as stated in Instruction 045/20. Please refer to this link for further information on Instruction 045/20.
  5. Eligible enterprises can suspend monthly contribution payments to the NSSF during the suspension of operations after the MLVT approves the employment contract suspension.
  6. Delay seniority payments accrued prior to 2019 and current seniority payments for 2020 to 2021.

Should you need any further information or need any legal support, please contact us at labor.kh@dfdl.com.

The information provided here is 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.


Contacts

Chris Robinson

Partner, Head of Cambodia Corporate & Commercial Practice Group

chris.robinson@dfdl.com

Samnangvathana Sor

Senior Consultant, Cambodia Corporate & Commercial Practice Group

samnangvathana.sor@dfdl.com

Alex Larkin

Senior Consultant, Cambodia Corporate & Commercial Practice Group

alex.larkin@dfdl.com


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