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Instruction on work permits for a foreign employer

IMPOSITION OF VAT UNDER STATE CHARGE ON BASIC MEALS FOR DAILY LIVING OF CITIZENS

On 19 November 2025, the Ministry of Economy and Finance (“MEF”) has issued a new Prakas introducing updated procedures and extending tax incentives for enterprises operating in Cambodia’s agricultural sector. This Prakas aims to promote agricultural productivity, enhance competitiveness, and support domestic supply and export activities.

On 2 December 2025, The General Department of Taxation (“GDT”) has issued Instruction No. 37705 on the Procedures for Tax Declaration of Transactions Incurred and Recorded in Accounting Prior to Payment.

On 2 December 2025, The General Department of Taxation (“GDT”) has issued Instruction No. 37706 on the Procedures for Tax Declaration of Transactions Incurred and Recorded in Accounting Prior to Payment in the Online Business Tax Filing System (e-Filing).

Entities should begin preparing for IFRS 18 ‘Presentation and Disclosure in Financial Statements’ sooner rather than later. Changes from IAS 1 ‘Presentation of Financial Statements’ could have a significant impact on the financial statements.

On 18 July 2025, the Ministry of Economy and Finance (“MEF”) issued Prakas 496 MEF.PRK on Capital Gains Tax (“CGT”). This marks a significant expansion of the tax net-gains from property, shares, and financial assets are now squarely within the tax authority’s reach from their respective effective dates.

On June 17, 2025, the General Department of Taxation (“GDT”) issued Instruction No. 18574 GDT to clarify concerns about the fulfillment of income tax obligations related to share premiums, which are the amounts received in excess of the par value of shares during capital increases.

On June 20, 2025, the General Department of Taxation (“GDT”) has released a new instruction No. 19116 GDT the tax obligations for members of the Board of Directors and Company Directors working in Cambodia. The guidance clarifies how individuals in such roles are taxed based on their employment status and the nature of their engagement

On 20 May 2025, the Non-Bank Financial Services Authority issued a Prakas to formally launch the digital financial reporting platform and the implementation of Cambodian Reduced Financial Reporting Framework in relation to the use of the digital financial reporting platform. A QR code to get the soft copy of the Cambodian Reduced Financial Reporting Framework is attached to the Prakas

On 22 May 2025, the Accounting and Auditing Regulator (ACAR) issued a Guideline to inform the owners of enterprises and the directors of NGOs about the procedure for the use of the financial reporting platform and the submission of the financial report using the platform.

The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) is challenging. The member firms of Grant Thornton International Ltd (GTIL) have extensive expertise in the application of IFRS. GTIL, through its IFRS Team, develops general guidance that supports its member firms’ commitment to high quality, consistent application of IFRS and is therefore pleased to share these insights.

Between 2023 and 2026, a wide range of new and amended International Financial Reporting Standards (IFRS) are being issued, significantly impacting how businesses measure, recognize, and disclose financial information. The IFRS 2025 publication provides: A comprehensive summary of all new standards and amendments effective from 2023 to 2027 Detailed guidance and economic impact assessment for each change A color-coded effective date system for easy reference and implementation planning

On 10 October 2024, the Ministry of Economy and Finance (“MEF”) issued Prakas No. 626 MEF.PrK which sets forth the tax incentives for the enterprise in tourism sector such as hotel, guesthouse, restaurant and tour agent registered and has a business activity in Siem Reap province shall be entitled as follows: 1) Exempted from paying all types of monthly taxes except value added tax (VAT) and accommodation tax from July 2024 until the end of June 2025. 2) Exempted from tax on income (TOI) for year 2024. For prepayment of tax on income which was paid already shall be allowed as a tax credit for offset with tax on income for the year 2025. 3) Exempted from tax audit for the period of 2024.

On 10 October 2024, the Ministry of Economy and Finance (“MEF”) issued Prakas No. 626 MEF.PrK which sets forth the tax incentives for the enterprise in tourism sector such as hotel, guesthouse, restaurant and tour agent registered and has a business activity in Siem Reap province shall be entitled as follows: 1) Exempted from paying all types of monthly taxes except value added tax (VAT) and accommodation tax from July 2024 until the end of June 2025. 2) Exempted from tax on income (TOI) for year 2024. For prepayment of tax on income which was paid already shall be allowed as a tax credit for offset with tax on income for the year 2025. 3) Exempted from tax audit for the period of 2024.

While the modern history of Cambodia remains vivid in the minds of every family, the nation’s rebuilding and cultural rediscovery represent a remarkable success story. Grant Thornton Cambodia has prepared this guide to assist those interested in doing business in Cambodia. This guide does not cover the subject exhaustively; however, it is intended to answer some of the more important broad generic questions that may arise.