Corporate - Tax credits and incentives

Last reviewed - 11 August 2022

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) may 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'. Some of the projects in the 'negative list' include the following:

  • All kinds of commercial activities, import and export activities, and transportation services (except the railway sector).
  • Currency and financial services.
  • Activities that relate to newspapers and media.
  • Production of tobacco products.
  • Provision of value-added services of all kinds of telecommunication services.
  • Real estate development.

The current investment incentives that are applicable to the QIP registered with the CDC include a CIT exemption period of up to six years or special depreciation (see Special depreciation in the Deductions section) and import duty exemptions. Not all QIPs will be entitled to all incentives.

Annually, a QIP is required to obtain a Certificate of Compliance (CoC) from the CDC to guarantee its investment incentives. 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. trigger period plus three years plus three year priority period).
  • Exempt from 1% prepayment of CIT during the tax holiday period.