Download - Investment in Cambodia
Investment in Cambodia
Saily Sor
Table of contents Cambodia at a glance Council for Development of Cambodia(CDC) Role and Responsibility Investment Approval Process Legal business type in the company according to the law of investment Major investment in Cambodia Incentive of Law of investment in Cambodia Cambodia Accounting System Cambodia Tax system Summary of Tax rate in Cambodia When is the tax should be paid? Reason to invest in Cambodia Cambodia economic situation Map explorer of Cambodia Average flight from Cambodia to other ASEAN countries ASEAN Infrastructures Recent Development in Cambodia Prohibited fields of investment Comparison between Cambodia and Thailand References
Cambodia at a glanceLand area: 181,035 km2 Population: 15,458,332 ( 2014
Estimated)GDP: USD $18Billion
( Estimate2015)GDP per capita: $1,146.083
( 2015estimate)Legal system: Constitutional
Monarchy Political: Prime Minister of
Cambodia is selected by voting from people
Membership: WTO,IMF,WB,UN, ASEAN
The Council for Development of Cambodia (CDC) is the sole and One-Stop Service organization responsible for the rehabilitation,
development and oversight of investment activities. The CDC is responsible for the evaluation and the decision-making on all
rehabilitation, development and investment project activities (Article 3, “Amended Law on Investment”)
Council for Development of Cambodia (CDC)Role and Responsibility
Investment application
CDC issues a Conditional Registration Certificate to the Applicant
Company Registration / Ministry of Commerce Relevant licenses, as appropriate / Ministry of Industry and Energy Review and approval of construction plan / local authorities- Ministry of Land Management, Urban Planning and Construction. Initial environmental impact assessment / Ministry of Environment Tax Department Registration / Ministry of Economy and Finance
CDC issues a Final Registration Certificate to the Applicant
3 working days
28 working days
Investment Approval Process
Legal business types in Company according to Law of Investment
A. EnterpriseB. Limited CompanyC. PartnershipD. Foreign Business
a. Commercial representativeb. Branchc. Subsidiary
Major Investment 2011 2012 2013 2014 2015 2011-2015
Agriculture 794.5 556.6 1,128.80 264.7 482.6 3,227.20Industries 1,340.80 1,489.70 1,106.70 2,835.60 919.3 7,692.10
Infastructure 2,782.30 227.8 2,620.80 353.5 3,129.80 9,114.20Tourism 845.6 691.5 106 479.6 111.9 2,234.60
Total 5,763.20 2,965.60 4,962.30 3,933.40 4,643.60 22,268.10
Major Investment in Cambodia
26%
10%
17%
36%
11%
Major Investment
Major Investment Agriculture IndustriesInfastructure Tourism
Improve infrastructure and utility Improve modern education and technical trainingHighly recommend for investment project that bring back the positive
development Encourage and support for project that bring back skill and develop
innovationEncourage and support for investment project that develop new product
by using local process productHighly recommended investment to consult with CDC in order to form
the business in Cambodia
Incentive of Law of Investing in Cambodia
Accounting SystemKICPAA (Kampuchea Institute of Certified Public Accountants and Auditors)CASs(Certifier of Accounting Standard)ASEAN federation of accountants (AFA)IFRS(International Financial Report Standard)
Cambodia Accounting System
Tax LawsLaw on Taxation of The Kingdom of Cambodia 2003Financial act 1994,1995,2007Other provision(Prakash, Sub decree, direction and notification…)
Cambodia Tax System
Corporation tax rate: 20%Sales/service tax rate: 10%Oil, gas, and business related to mineral exploitation is 30%Insurance: 5%Withholding tax: 10% to 15%VAT 10%, 0% for industries who supply certain goods and service to exportersPersonal income tax : 0% to 20%Cambodia no tax on capital gainTaxes on specific goods and services:
Gazed soft drinks, alcoholic product, beer : 20% Cigarettes: 15% Entertainment services, air transport of passengers: 10% Telephone services: 3%
Summary of Tax Rate in Cambodia
Every month by before 15th day of the following month.For annual profit tax by before March 31st of the following year.VAT by before 20th day of the following month.
When is the tax should be paid?
Reason to Investment in Cambodia
Rich in natural resourceFriendly investment environmentFull supply of utility( electricity and water)Fully supporting from government on private sectorOne stop service by CDCHas the lowest labor cost and a dynamic workforce among
ASEAN countriesHave international airport and port for transport the
products Member of ASEANMember of Mekong FivesWTO member since 2004 increasing trade integrationsNot entered double tax agreement
Cambodia economic Situation
Map Explorer of Cambodia
Average Flight from Cambodia to other ASEAN Countries
ASEAN Infrastructures
Recent Development in Cambodia
Aeon Shopping Mall
Camko City Olympia City
Wattanac Capital and Canadia Tower
Production/processing of psychotropic substances and narcotic substances
Production of poisonous chemicals, agriculture pesticide/insecticide and other goods by using chemical substances prohibited by international regulations or the World Health Organization, that affect the public health and environment
Processing and production of electrical power by using any waste imported from a foreign country
Forestry exploitation business prohibited by Forestry Law.
Prohibited Fields of Investment
Compare between Cambodia and Thailand Cambodia Thailand
Currency Riel BathCurrency rate($1) 4079.63 Riel 35.25 Bath
Trade organizations WTO,ASEAN,AFTA WTO,APEC, IOR-ARC,ASEANGDP $18.61 billion $1.054 trillion
GDP per capital $1,225 $15,319GDP growth 0% -0.30%
Inflation 5% 3.02%Population 15.6 million 68 millionLand area 181,035 km2 513,120 km²
Industry Tourism, garments, construction, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles
Tourism, textiles and garments, agricultural processing, beverages, tobacco, cement, light manufacturing such as jewelry and electric appliances, computers and parts, integrated circuits, furniture, plastics, automobiles and automotive parts; world's second-largest tungsten producer and third-largest tin producer
Export $6.781billion $214.37 billion
Export Commodities Clothing, timber, rubber, rice, fish, tobacco, footwearElectronics, computer parts, automobiles and parts, electrical appliances, machinery and equipment, textiles and footwear, fishery products, rice, rubber
Import $8.895million $202.65 billion
Import commoditiesPetroleum products, cigarettes, gold, construction materials, machinery, motor vehicles, pharmaceutical products Capital goods, intermediate goods and raw materials, consumer goods, fuels
Labor force 8.8million 39.41 millionElectricity import 1.83billion kWh 9.575 billion kWhElectricity export 0 1.535 billion kWh
Telephone line 584,000 6.391 millionMobile 19.1 million 84.075 million
Internet user 78,500 17.483 millionRailway 690 kmm 4,071 km
Roadway 39,618 km 180,053 kmWaterway 3,700 km 4,000 km
Sector 2009 2010 2011 2012 2013 2014 TotalAgriculture Products 60 72 64 69 61 37 363
Mineral and Ceramics 13 18 31 31 26 27 146 Light Industries/Textiles 48 65 62 69 67 37 348
Metal Products and Machinery 157 217 300 452 410 296 1,832
Electric ad Electronic Products 108 189 180 261 241 168 1,147 Chemicals and Pape 63 107 101 183 169 106 729
Service 165 188 166 292 250 241 1,302 Total 614 856 904 1,357 1,224 912 5,867
Major Investment in Cambodia 2011 2012 2013 2014 2015 2011-2015
Agriculture 794.5 556.6 1,128.80 264.7 482.6 3,227.20Industries 1,340.80 1,489.70 1,106.70 2,835.60 919.3 7,692.10
Infastructure 2,782.30 227.8 2,620.80 353.5 3,129.80 9,114.20Tourism 845.6 691.5 106 479.6 111.9 2,234.60
Total 5,763.20 2,965.60 4,962.30 3,933.40 4,643.60 22,268.10
Foreign Investment Projects Approval by BOI
http://www.iasplus.com/en/jurisdictions/asia/cambodia http://www.cambodiainvestment.gov.kh/investors-information/taxation-and-accounting.html https://en.wikipedia.org/wiki/Cambodia http://uk.practicallaw.com/3-524-4317#a929134 http://country-facts.findthedata.com/l/110/Cambodia http://www.pwc.com/kh/en/publications/2012/assets/cambodia-tax-book2012-05042012.pdf http://www.tax.gov.kh/en/brief.php http://www.rd.go.th/publish/fileadmin/user_upload/AEC/AseanTax-Cambodia.pdf http://www.cambodiainvestment.gov.kh/law-on-accounting-law-on-corporate-accounts-their-audit-and-the-accounting-
profession_020708.html http://www.cambodiainvestment.gov.kh/investment-scheme/investment-application-procedures.html http://pps.com.kh/PPSUploadFiles/iv/167_en-us.pdf http://www.cambodianembassy.org.uk/publications/PDF/Tourism/Investing%20in%20Cambodia%202013-2014.pdf http://www.cambodiainvestment.gov.kh/investment-enviroment/investment-trend.html
References