Investment Update: Special Program to Promote Investment in Preah Sihanouk Province 2024

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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