The Royal Government of Cambodia has launched Special Program to Promote Investment in Preah Sihanouk Province. There are three both tax and non-tax benefits to investors.

1. INCENTIVES FOR PROJECTS ON INCOMPLETE BUILDINGS

• A three-year tax holiday including income tax, monthly prepayment of income tax, and the minimum tax.
• Application of a zero rate VAT on the completion and renovation of incomplete structures.
• A five-year exemption from withholding tax on property leases.
• Waivers on property tax and administrative fines.
• Removal of charges for public services and for exceeding land use quotas.
• Encouragement of alternative dispute resolution methods for investment disputes.
• Simplified construction permit application processes with the relevant authorities, including:

• reduced fees for construction supervision and related certifications,
• simplified investment and business procedures,
• support for establishing auction markets for property, and
• investor matchmaking services, including property price guidance in Sihanoukville.

2. INCENTIVES FOR INVESTMENT PROJECTS NOT RELATED TO IMCOMPLETE BUILDINGS

• Streamlined investment and business procedure, including license and permit applications.
• Special tax incentives and reliefs, such as exemptions on import, patent, signboard taxes, withholding tax on property leases, and registration fees for businesses in Sihanouk province.
• Tax benefits including a three-year extension on annual income tax, monthly prepayment of income tax, and minimum tax exemptions for eligible investments and SMEs registered with the tax authorities.
• The ability for SMEs to register with the tax authorities to apply a zero rate VAT on locally produced inputs. 

3. INCENTIVES FOR EXPANDING INVESTMENT AND BUSINESS PROJECTS

• Efficient procedures and permits for expanding investment projects or business activities.
• Tax reliefs, including exemptions on import, patent, signboard taxes, and withholding tax on property leases for expanding enterprises.
• An income exemption to be multiplied by 150% as the basis for income tax calculation.
• A three-year income tax exemption based on the capital expansion ratio, with the allowance for income exemption to be multiplied by 150% as the basis for income tax calculation.

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