As the new year starts, this Update provides you a reminder of the key regulatory compliance requirements for the year of 2025 that would affect your company. These include the following annual filing requirements in order for your company to be in good legal standing under Cambodian laws:
- Renewal of Patent Tax Certificate
A company is required to pay and renew its Patent Tax Certificate(s) annually by the end of March each year.
- Filing of Annual Income Tax Return
A company is required to file an annual income tax return with a tax administration by the end of the third month after the end of the fiscal year, meaning by the end of March or any month as approved by the General Department of Taxation (“GDT“). The company must attach the balance sheet, income statement and other additional information as required by the GDT. The tax is due and payable at the time of filing of the return. Please note that even if the company does not earn any income or profit, the company is still required to file a NIL declaration.
- Application for / Extension of Work Permit for Foreign Employee(s)
According to the Labour Law and related regulations, foreign employees must obtain a work permit in order to legally work in Cambodia. A work permit is valid from the date of its issuance until 31 December of that same year and may be extended so long as the extension does not exceed the fixed period in the residency permit/visa of the expatriate in question.
- Labour Self Inspection Regime via Automated System
A company is required to conduct its labour self-inspection twice a year via the automated system of the Ministry of Labour and Vocational Tranining, by the end of June and December respectively. This inspection aims to assess the company’s compliance with labour law and regulations and to rectify any non-compliance issues before the imposition of penalties by labour inspectors.
- Filing of Annual Declaration of Commercial Enterprise
A company is required to submit its Annual Declaration of Commercial Enterprise within three months from the 12th month of the entity’s re-registration or registration date.
Please review the above and let us know if you wish for assistance in proceeding with any of the above annual or bi-annual filings. For further queries, please contact Chum Socheat, Tax Manager, at chum.socheat@rajahtann.com or any of our team members set out on this page.
Concluding Words
Rajah & Tann Sok & Heng Law Office would like to thank you for your trust and confidence in our work throughout 2024. We hope to continue our good working cooperation with you for this new year.
Disclaimer
Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.
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Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.