2020 03 August

Cambodia Update: Additional Measures to Support Private Sector Workers & to Revive the Post-COVID-19 Economy


On 31 July 2020, the Royal Government of Cambodia (“RGC”) issued a press release and rolled out ‘Round 5’ of measures aimed at mitigating the impacts of COVID-19 on businesses and workers in Cambodia. These represent a combination of new and existing measures (that have been extended) already in place. In addition to providing relief to businesses and workers amid the current COVID-19 outbreak, this round of measures is also geared towards promoting economic growth and helping businesses rebound in the wake of the unprecedented disruption caused by COVID-19.

Round 5 of the RGC’s measures are summarized below:

1. Further measures to support garment, textile, footwear, travel products & bags sectors

The government will continue to implement measures that provide aid to suspended employees and workers in certain segments of the private sector. This includes those in the garment, textile and footwear (“GTF”) sectors that are registered with the Department of Labour and Vocational Training (“DLVT”), the Ministry of Commerce (“MOC”), the Ministry of Tourism (“MOT”) and the General Department of Taxation Cambodia (“GDT”). Those suspended workers, subject to their current status being certified with appropriate documentation will:

  • Continue to be eligible to receive government subsidies of USD 40 per month for a period of up to two months from August to September 2020. An additional USD 30 per month will be available to GTF sector workers (a total of USD 70 per month for such workers).
  • Hotel, guest house, restaurant and tourism workers will be eligible to receive USD 30 per month for another two months, i.e. until the end of September 2020.
2. Further measures to support hotels, guesthouses, restaurants & travel agents

Monthly tax exemptions that had been provided to hotels, guesthouses, restaurants and travel agents registered with the GDT that operate in Phnom Penh, Siem Reap, Preah Sihanouk, Kep, Kampot, Bavet or Poi Pet will be extended for two more months (August 2020 to the end of September 2020).

3. Further measures to support the tourism & aviation sectors

The Minimum Tax exemption provided to all airline entities operating in Cambodia will be extended for two more months (August 2020 to the end of September 2020).

4. Financial support program for poor & vulnerable families

The program to provide cash benefits to poor and vulnerable families that were hit particularly hard during the COVID-19 pandemic is extended by two more months (August 2020 until the end of September 2020).

All relevant ministries are directed to implement these instructions immediately, efficiently and without delay.

The RGC will continue to monitor the COVID-19 situation along with the economic and financial climate both locally and globally, in order to assess and take action where necessary to ensure the welfare of all priority sectors of the Cambodia economy. This is in keeping with the RGC’s aims to stabilize and revitalize the national economy and to restore economic growth as the effects of the COVID-19 pandemic gradually begin to subside.

The DFDL tax team as always stand ready to answer any questions that you may have on this and other tax issues of concern.

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.


Clint O’Connell

Partner, Cambodia Deputy Managing Director & Head of the Cambodia Tax Practice



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