Cambodia allows tax exemption for aviation, tourism sector

Following the temporary suspension of operations due to the Covid-19 pandemic, the government has issued a three-month minimum tax exemption for the aviation sector and exemption on monthly taxes for tourism operators.

These measures are aimed at easing the burden of the private sector affected by the virus’ spread, said a statement from the government.

Reports in the Phnom Penh Post said the minimum 10 per cent tax exemption applied from last month to next month for airlines operating in Cambodia.

The government also allowed airlines to set up debt repayment plans to be paid in installments following the temporary suspension.

Tourism operators eligible for tax exemption include hotels, guesthouses, restaurants and aviation agencies registered with
the Economy and Finance Ministry’s General Department of Taxation.

“The measure will apply to eligible operators in Phnom Penh and Siem Reap, Preah Sihanouk, Kep and Kampot provinces, as well as Bavet and Poipet towns for the three months.

“These businesses are obliged to file tax-related documents at the department or on its website via the e-VAT online system every month during the tax exemption period,” said the statement.

The government expanded the scope of its 20 per cent sponsored contribution mechanism to workers and employees affected by the suspension of operations in the tourism sector.

Read the full article at New Straits Times: https://www.nst.com.my/world/region/2020/04/580928/cambodia-allows-tax-exemption-aviation-tourism-sector