Cambodia Issues Tenth Round of Stimulus Measures

On October 28, 2021, Cambodia issued its tenth round of stimulus measures to help specific industries mitigate the economic impact caused by the ongoing pandemic. These latest measures are an extension of the support provided in the ninth stimulus package, which was issued in June 2021.

Meanwhile, the tourism industry contributes 12 percent of GDP and the government views this industry as an indispensable path towards economic recovery. As such, the government also plans to attract seven million tourists by 2025 and 11 million domestic tourists by 2023.

Suspended workers from the garment, textile, and footwear sectors will continue to receive the standard US$40 per month until the end of December 2021. Moreover, an additional US$30 per month contributed by their employers (thus totaling US$70 per month) will also continue.

Suspended workers of hotels, guest houses, restaurants, and tourism workers will be eligible to receive US$40 per month, also until the end of December 2021.

Employees and workers from the mentioned sectors must be registered with the Department of Labor and Vocational Training (DLVT), the Ministry of Commerce (MoC), the General Department of Taxation of Cambodia (GDT), and the Ministry of Tourism (MoT).

Hotels, guesthouses, travel agencies, and restaurants will continue to be exempt from paying monthly tax until the end of December 2021. These businesses must be registered with the GDT and be located in Siem Reap, Phnom Penh, Preah Sihanouk, Kep, Kampot, Bavet, and Poi Pet. Businesses, however, must continue to submit their tax returns via the E-VAT system every month during this exemption period.

There are four pension schemes available in Cambodia:

Airlines in Cambodia are still exempt from paying the ‘minimum tax’ until the end of December 2021. The minimum tax due is equal to one percent of total turnover, except value-added tax (VAT), and is irrespective of whether the taxpayer is in a profit or loss situation.

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This article was first published by AseanBriefing which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, India, and Russia. Readers may write to [email protected].

Source link : Cambodia Issues Tenth Round of Stimulus Measures by ASEAN Briefing

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