Legal and Tax Updates

Legal Update: Instruction on the Implementation of Tax Obligation for Public Administrative Institutions

Issue: No. 015P/23 20 September 2023

On 13 September 2023, the Ministry of Economy and Finance (the “MEF”) issued Instruction No. 021 SHV.S.Nr.N.GDT on the Implementation of Tax Obligation for Public Administrative Institution (the “Instruction”).

This Instruction is intended to facilitate the performance of tax obligations and​ the management the tax collection to ensure efficiency, transparency, and effectiveness. The MEF has guided the performance of tax obligations for Public Administrative Institutions as follows:

Guidance on Performance of Tax Obligations for Public Administrative Institutions
Obligation of Registration and Information Update A.      Public Administrative Institutions shall register with the tax administration within 15 days after commencing economic activities or other activities or after receiving a registration certification letter or permit issued by relevant ministries or institutions.

B.      Public Administrative Institutions shall notify or update any information to the tax administration within 15 days after changing its address, form, name, business objective, transfer, cessation of business, company management, or person responsible for tax matters.

Patent Tax Patent Tax shall be exempted for any activities of Public Administrative Institutions as part of the public service of its mission for public interest.
Value Added Tax (VAT) A.      The income of the Public Administrative Institutions received from the state budget subsidies and the income received upon completing its public service fee mission such as the public service fee attached to the annex of the ministry’s budget, technical guardian institutions, or other contributions, which are not subject to VAT.

B.      Any credit of VAT Input paid by the Public Administration Institutions to the suppliers is not allowed as VAT credit and to refund.

Tax on Income Income tax shall be exempted for income received from the state budget subsidies and the public service fees, including other incomes, in order to serve public service as part of its mission and without any portion of the property or such income being used for personal gain.
Other Taxes The Public Administrative Institutions shall perform their obligations as withholding tax agents in accordance with Article 25, Article 26, and Article 31 of the Law on Taxation, and shall pay tax on salary and other taxes in accordance with laws and regulations in force.
Submission of Tax Declaration


Public Administrative Institutions are required to submit monthly tax declarations and annual tax declarations to the tax administrative. This submission shall be made as per the application, working hours, and location specified by the tax administrative, regardless of with or without tax payment obligation.




The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any questions or need any assistance, please feel free to contact us:



NOEUM Sokvichhai,


Managing Director

+855 12 826 785


Sokvichhai has more than 10 years of experiences in labour, corporate, commercial and investment advisory in Cambodia. He actively advices and assists various businesses in commercial, tax, and labour registration, business licensing, products registration & distribution, business recapitalization & restructuring, and mergers & acquisitions transaction. He also has particular experiences in advising collective investment fund & trust business, securities (IPO & bond), investment incentives & qualified investment project, and labour & employment related issues.
Dr. CHHAK Limchheang,


Head of Real Estate and Construction Practice Group

+855 89 813 160


He has several years of professional experiences in real estate-related transaction and construction sector in Cambodia. He has advised local and foreign clients on acquisition and disposal of residential, industrial and commercial properties, on commercial lease, factory perpetual lease, real estate joint venture development and FIDIC agreements. Recently, he led counsel to advise on both real estate and tax issues of real estate development project with an approximate investment portfolio of USD 40 million in Kampot Province. He is currently leading a legal counsel to advise a major domestic company in their joint venture property development with an investment portfolio nearly USD 200 million in Phnom Penh.

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