Tax & Investment Benefits

Tax & Investment Benefits

Cambodia’s Investment Perspective: GDP: Cambodia economy outperforms most of its neighboring countries. Almost comparable to giant economy China:

1. 20% Corporate Tax:

Standard rate of tax on profit for legal persons with minimal restrictions on profit transfers to designated location(s)

2. 100% Business Ownership:

Foreigners can own and operate the business 100% without required local partner(s), except land

3. Tax Holiday:

Up to 9 years corporate tax holiday on export profits for QIP & low corporate taxes

4. 10% VAT:

Temporarily suspend on importation for production equipment, production machinery, construction materials and raw materials.

5. 100% Import Duty Free:

On importation for production equipment, production machinery, construction materials and raw materials.

6. One-Stop-Service:

On site one-stop-shop short customs office, short lead time and low cost for customs paperwork process and clearances. No bureaucratic process and unnecessary cost

7. Emerging Market:

A “Blank-Canvas Investment Opportunities”, basically, most industrial investment opportunities are undeveloped

8. Young Population:

With approximately over 60% of young populations

9. Low Labor Cost:

On average monthly salary is around $150usd compared with $300-$450usd in the region

10. LDC:

Cambodia is a Least Development Country, no import taxes, duties and anti-dumping duties imposed on importers of the host country

11. Centralized Location:

Simply you can fly to/from any major commercial cities in Asia within 45 minutes to 4.5 hours

12. Liberal Investment Policy:

One-stop-shop and fast investment registration process, minimal restriction on foreign direct investment, partnership, no restriction on profits and international currency transfers to designated location. Investment registration LEAD TIME 6-8 weeks

13. Long Term Lease:

Foreign businesses can lease the land up to 99 years

Disavantages of investing outside SEZ

1. Import VAT:

May subject to 10% VAT on all import equipment, machinery, construction materials, raw materials and related fees, except garment related goods

2. Export VAT:

May subject to 10% VAT for applicable export goods and other related fees

3. Off Site Custome Office:

oOff-site customs document processing can be time consuming and costly due to bureaucratic process and unnecessary costs

4. Enviromental Risk:

The infrastructure may not built according to international standards and codes. Environmental impacts could affect bottom line and public challenges

5. Logistics:

Long lead time (LLT) to and from Commercial hubs in Cambodia/Thailand due to customs clearance process and other related procedural matters

6. Safety & Security:

Expose to potential risks; employees, management and fixed assets can be affected due to open and uncontrollable environments i.e., traffics, squatters, poor surrounding infrastructure

7. Infracstructure:

Limited access to reliable supporting infrastructure such as electricity and water supply, waste-management systems, public warehousing, and container terminal

8. Professional Services:

Limited access to professional services and business consultations

9. Corporate Image:

Lack of environmentally friendly supporting infrastructure