On 10 October 2024, the Ministry of Economy and Finance issued Prakas No. 626 on Tax Incentives for Enterprises in the Tourism Sector that operate in Siem Reap province (“Prakas no. 626“). Prakas no. 626 aims to restore the tourism sector by providing tax incentives for enterprises in the tourism sector, including hotels, guesthouses, restaurants and travel agent companies that are registered with the General Department of Taxation (“GDT“) and conduct their business in Siem Reap province.
The tax incentives provided for the above-mentioned enterprises are as follows:
- Exemption from paying their monthly taxes, except for value-added tax and accommodation tax, from July 2024 until the end of June 2025.
- Exemption from tax on income for year 2024. For any prepayment of tax on income that has been paid, it will be allowed as a tax credit for offsetting against the tax on income for year 2025.
- Not subject to tax audits for year 2024.
During the incentive period, the enterprises that are entitled to these exemptions still have the obligation to comply with the following:
- Small taxpayers are required to file tax returns according to the form, time, and place determined by the tax administration, or to file such tax returns via the GDT Tax Prefiling App.
- Medium and large taxpayers are required to file their tax returns using the e-Filing system every month and also file an annual tax on income return using the online Tol e-Filing system in accordance with the law and tax regulations.
- Taxpayers must keep and maintain accounting records and information related to their business activities in accordance with the law and tax regulations.
If you have any queries on the above, please feel free to contact our team members below who will be happy to assist.
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