Logo of Phnom Penh Post newspaper Phnom Penh Post - Local SMEs await procedural details from tax authorities

Local SMEs await procedural details from tax authorities

Content image - Phnom Penh Post
Workers bundle packaged goods into plastic bags at the LYLY Food Industry Co Ltd factory in Phnom Penh’s Por Sen Chey district in 2015. Hong Menea

Local SMEs await procedural details from tax authorities

Small and Medium Enterprises (SMEs) are still waiting for tax authorities to provide procedural details after the government announced tax incentives for SMEs in six priority sectors three months ago, said Federation of Associations for Small and Medium Enterprises of Cambodia (Fasmec) operations manager Ly Visal.

Speaking on Thursday, he said: “According to the General Department of Taxation [GDT], the detailed procedure for tax exemptions for the six priority sectors announced by the government will be completed by the end of January.

“After news of the tax exemption, many companies and businesses expressed their delight, but still look forward to seeing the [GDT’s] [application] procedure.”

According to the sub-decree on SME tax incentives signed by Prime Minister Hun Sen on October 2, six priority sectors, which include agro-industries as well as food production and processing will receive an exemption on income tax from three to five years.

The remaining four priority sectors are manufacturers of products used in waste processing and tourism, manufacturers of parts and equipment supplied to other manufacturers, research and development of information technology – including innovative equipment-management services and enterprises developing SME commercial districts.

The new sub-decree says that any SME intending to receive a five-year tax exemption must use at least 60 per cent domestic raw materials, increase the number of employees by at least 20 per cent or be located in SME districts.

Chen Sopheap, founder and managing director of Keiy Tambanh Khmer, which sells pha muong, seung and other traditional Khmer silk products, said she is currently not registered with the General Department of Taxation because there is insufficient legal documentation for taxation, though she notes that her company is ineligible due to its small number of staff and low income.

“I have not yet registered with the GDT, because doing so requires many standardised documents,” she said, adding that, “nowadays, I am also studying and preparing documents to prepare for registration”.

Currently, there are more than 500,000 SMEs in the Kingdom, though only 40,000 are registered, according to Fasmec president Te Taingpor.

MOST VIEWED

  • Body of woman killed in Bangkok returns

    The Cambodian embassy in Thailand is working to repatriate the body of a casino dealer who was shot dead in Bangkok on Monday night. Ministry of Foreign Affairs and International Cooperation spokesman Kuy Kuong told The Post on Wednesday that officials are preparing paperwork to

  • Chikungunya hits 15 provinces, says gov’t

    Ministry of Health spokeswoman Or Vandine said on Thursday that the chikungunya outbreak in the Kingdom has spread to 15 provinces. Some 1,700 people are now suspected to have the disease. Vandine urged people to prevent its further spread by eliminating shelters for the Aedes aegypti mosquitoes

  • Gov’t exempts visa A and B holders from Covid fees

    Airline passengers who are diplomats and officials of international organisations holding Type A and B visas for travel to Cambodia are exempted from paying Covid-19 testing fees, said the Ministry of Health in its latest adjustment of rules on Wednesday. Health Minister Mam Bun Heng

  • Bill covering dress code draws ire

    Ministry of Interior secretary of state Ouk Kim Lek responded on Tuesday to criticism concerning a draft law that would ban women from wearing overly revealing clothing, saying that input from all parties will be considered as the law moves through the promulgation process. Several

  • Passing the test: Is Cambodia’s education system failing its people?

    The Kingdom’s education system needs to grow its people but some flaws might stifle​ this growth Coming from the Khmer Rouge occupation, with the loss of many scholars and academicians and a collapsed government, the education system had to be reconstructed from scratch – one

  • What’s the deal with Cambodia and China’s FTA?

    Cambodia’s Free Trade Agreement (FTA) with China kicks off a series of FTAs in future but for now, critics wonder what else the parties could bring to the table apart from what it already has to date By the end of this year, Cambodia