Legal and Tax Updates

Legal Update: Prakas on Tax Incentives for Enterprises in Tourism Sector

Issue: No. 005P/24P 26 February 2024

On 08 February 2024, the Ministry of Economy and Finance (the “MEF”) issued a Prakas No. 119 MEF.BrK.GDT on the Tax Incentives for Enterprises in Tourism Sector (the “Prakas”).

This Prakas aims to provide tax incentives, in order to recover the tourism sector, for any enterprises in tourism sector including hotel, guest house, restaurant and tourism agency company, which has been registered with the tax authority and having business activities in Phnom Penh, Siem Reap Province, Preah Sihanouk Province, Kep Province and Kompot Province.

The tax incentives which will be provided is as follows:

City/Province Tax Incentive Obligations to file the Annual Income Tax and Accounting Records
Siem Reap Province A.   Exemption of all monthly tax payment, except VAT and accommodation tax, from October 2023 until the end of June 2024;

B.   Exemption of tax on income for year 2023. For tax relief on tax on income which already paid by enterprise shall be allowed as tax credit and subject to be set of with tax on income for year 2024;

C.   Exemption of all tax debt due before the fiscal year 2023, including tax, additional tax, interest, 25% additional tax and compound interest; and

D.   Not subject to the tax audit for the fiscal year 2020 until 2023.

During this period, the enterprise still has the following obligations:

–   Medium and large taxpayers shall file the tax return via e-Filling and annual tax income return via ToI e-Filling in accordance with the existing tax laws and regulations.

–   Small taxpayer shall file the tax return as determined by the tax administration or via GDT Tax Prefilling App.

The taxpayers shall keep, record, and maintain the accounting and information regarding to its business activities in accordance with the existing tax laws and regulations.

Phnom Penh, Preah Sihanouk Province, Kep Province and Kompot Province. Not subject to the tax audit for the fiscal year 2020 until 2023.



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


Mr. Sokvichhai has more than 8 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 and trust business, initial public offering, bond issuance, investment incentives & qualified investment project, and labour & employment related issues. Sokvichhai also assists major business in preparing various complex commercial agreements.
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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