News

Socharakvatey Sith

27th - June, 2026

Cambodia Issues Sub-Decree on Penalties for Violations of the Law on Accounti...
The Royal Government of Cambodia issued Sub-Decree No. 102 SD.Es on Penalties for Violation of the Law on Accounting and Auditing, dated 25 May 2026 (the “Sub-Decree”). The Sub-Decree sets out the specific offenses and corresponding fines for violations of the Law on Accounting and Auditing, together with the authorities, measures, and mechanisms for imposing and managing penalties. It replaces the interim penalty regime under Sub-Decree No. 79 dated 1 June 2020. Enforcement of the penalties is within the jurisdiction of the Accounting and Auditing Regulator (“ACAR”). Scope of Application The Sub-Decree applies to: – Audited and non-audited enterprises registered with the Ministry of Commerce and/or the General Department of Taxation that are large taxpayers or medium taxpayers, and all ...

26th - May, 2026

Cambodia Clarifies Tax Obligations for Board Members and Company Directors
The General Department of Taxation (“GDT”) issued Instruction No. 19116 GDT dated 20 June 2025, providing detailed guidance on the tax treatment of members of the board of directors and company directors working in Cambodia. The Instruction clarifies how the compensation of directors – whether paid domestically or offshore – is classified, either as salary subject to Tax on Salary (“ToS”) or as services subject to Withholding Tax (“WHT”). The guidance reflects Cambodia’s application of substance-over-form principles, particularly in the context of cross-border personnel arrangements. Background The previous tax framework was largely silent on the tax obligations of board members who did not receive payment from a Cambodian entity for their directorial duties. In practice, this led to inconsistent treatment, ...

27th - October, 2025

New Requirements for VAT Refunds in Cambodia
Cambodia Mandates Khmer Riel Bank Accounts for VAT Refund Applications The Ministry of Economy and Finance has recently introduced significant changes to the Value Added Tax (VAT) refund process through Instruction No. 030 issued on 24th December 2024. This new instruction establishes a requirement for Khmer riel (KHR) bank accounts for medium and large taxpayers as well as foreign diplomatic missions, consular offices, international organizations and other governmental technical cooperation agencies, which seek VAT refunds. Key Requirements: Mandatory KHR Bank Account: Applicable entities must maintain a bank account denominated in Khmer riel that is properly registered in the General Department of Taxation (GDT) management system specifically for receiving VAT refund payments. New Account Requirements: Entities that do not currently hold ...

27th - October, 2025

First-Time Home Buyers in Cambodia: New Tax Incentives for 2025
The Ministry of Economy and Finance of Cambodia has issued a tax relief measure (Notification No. 020 dated 31st December 2024) for residential property transfers in 2025. Key Points: 1. Effective Period 1st January 2025 – 31st December 2025 2. Applicable Properties – Gated communities (Borey) – Condominiums 3. Tax Incentives For Properties Purchased Before 2025 (Transfer in 2025): – Full stamp duty exemption for properties valued up to USD 210,000 – For properties over USD 210,000: USD 210,000 deduction from tax base – Second/subsequent properties: USD 70,000 deduction from tax base For Properties Purchased in 2025: – Same benefits apply 4. Eligibility Requirements Property Source: – Must be purchased from registered residential developers – Developer must be registered with ...

27th - October, 2025

New ACAR Decision: Stricter Licensing Requirements for Accounting and Auditin...
The Accounting and Auditing Regulator (ACAR) of Cambodia has recently issued a new decision that significantly impacts the licensing process for accounting and auditing professionals. This column summarizes the key points of the decree and its implications for individuals and firms in the industry. Key Provisions of the Decree 1. Scope: The decree applies to both individuals and legal entities applying for or renewing accounting and auditing profession licenses. 2. Proper and Appropriate Criteria: Applicants must meet specific criteria outlined in the decree’s annex. These criteria aim to evaluate financial integrity, past penalties, and adherence to professional ethics. 3. Extended Application: For legal entities, the criteria apply not only to the entity itself but also to its employees, audit partners, ...