Corporate - Tax credits and incentives

Last reviewed - 04 September 2023

Foreign tax credit

Residents earning foreign-sourced income can receive credits for foreign taxes paid.

Inbound investment

The Council for the Development of Cambodia (CDC) can be approached for a one-stop service to register a project and obtain approval for a QIP status. CDC licensing is, however, not mandatory (except for certain large, politically sensitive projects) and is applicable to those projects that do not fall within the 'negative list'. There are detailed criteria of the 'negative list', which are generally small-size investment in agriculture, service, industrial, and infrastructure sectors. 

The current investment incentives that are applicable to the QIP registered with the CDC include a CIT exemption period from three to nine years based on investment activity categories, or special depreciation (see Special depreciation in the Deductions section) and import duty exemptions. Not all QIPs will be entitled to all incentives.

In addition, after the expiry of the full income tax exemption, a QIP is still entitled to a partial income tax exemption for the next six years, including:

  • Payment of only 25% of total income tax liabilities for the first two years after the expiry of a full income tax exemption period.
  • Payment of only 50% of total income tax liabilities for the second two years.
  • Payment of only 75% of total income tax liabilities for the third two years.

Investment projects are required to submit a half-year and annual report to the CDC / the Provincial/Municipal Investment Sub-committee (PMIS) within 20 days after the closing date of tax return submission to guarantee its investment incentives. After receiving the half-year and annual report from the investors, the CDC/PMIS will issue a Certificate of Compliance (CoC) to the investors. The CoC is intended to provide confirmation that the QIP has acted in compliance with the relevant tax regulations.

Tax incentives in the securities sector

The Royal Government of Cambodia issued this new Sub-Decree to grant tax incentives to companies/enterprises listed on the Cambodian Stock Exchange (CSX) for the first time, and to public investors (residents and non-residents) who hold or trade in government, equity, or debt securities on the securities market.

Under the Sub-Decree, the tax incentives include:

  1. A 50% reduction of the annual CIT liability for the first three years or for any period approved by the MEF.
  2. Tax liability waivers: Initially, listed companies/enterprises are entitled to tax liability waivers of full CIT, WHT, VAT, specific tax on certain merchandise and services, accommodation tax, and public lighting tax (liabilities for a certain number of years before being initially listed on the CSX).
  3. WHT incentives: Public investors are entitled to a 50% reduction of the WHT payable on interest and/or dividend received from holding and/or trading in government, equity, or debt securities within three years, starting from the effective date of this Sub-Decree.

Annual tax liability reduction or waivers in points (i) and (ii) above are not applied to Qualified Investment Project (QIP) companies during the tax holiday. Other companies/enterprises that have already been listed on the CSX, but haven’t received tax incentives yet, are also entitled to tax incentives such as in point (i) above.

There are some conditions (i.e. where companies/enterprises fail to file annual and monthly tax returns and pay taxes on time, do not allow tax authorities to audit accounting records or other documents, or do not pay taxes, additional tax, and interest) that mean the GDT can ask the MEF to forfeit the tax incentives that were initially granted to those listed companies/enterprises.

Provisions issued in accordance with Sub-Decree No. 01 ANKr.BK dated 8 January 2015 on tax incentives in the securities sector shall continue to comply with this new Sub-Decree, which is effective from 4 January 2019.

Additional tax incentives for rice farming, paddy rice purchase, and export of milled rice

The MEF has issued Prakas to provide additional tax incentives to any enterprises in the business of rice farming, paddy rice purchase, and export of milled rice, as follows:


  • Domestic supplies of paddy rice: 0%.
  • Domestic supplies of milled rice: 10%.
  • Export of milled rice: 0%.
  • Supplies of milled rice or milled rice production services to rice exporters (subject to specific conditions): 0%.
  • Supplies of milled rice or milled rice production services to the local market: 10%.
  • Input VAT related to rice farming, paddy rice purchase, and export of milled rice is creditable or refundable.
  • Input VAT related to import of production inputs and equipment to produce milled rice for export is borne by the government (subject to specific conditions).
  • Local purchases of production inputs, except for paddy rice: 10%.


  • Entitled to tax holiday period (i.e. from three to nine years based on investment activity categories plus other incentives).
  • Exempt from 1% prepayment of CIT during the tax holiday period.