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Cambodia: Tax relief for airlines, tourism sector, banks (COVID-19)

Cambodia: Tax relief for airlines, tourism, banks

The government announced additional tax relief measures for certain sectors in response to the coronavirus (COVID-19) pandemic.


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The General Department of Taxation issued Letter No. 13052 (28 May 2020) to provide instructions for tax administrative units on the implementation of tax relief for airline companies, certain tourist-related enterprises, and banking and microfinance institutions.

For airline companies registered in Cambodia, there is a further exemption of minimum tax for June and July 2020. During this two-month period, eligible airlines are not required to pay the monthly 1% prepayment of income tax.

Certain tourism enterprises (hotels, guesthouses, restaurants, and travel agency companies in various locations) are exempt from paying all types of monthly taxes for June and July 2020. These taxpayers must still comply with their tax return declaration obligations and must use the online value added tax (VAT) management system (E-VAT).

For domestic banks and microfinance institutions in Cambodia, the withholding tax rate on interest from new loans (whether domestic or foreign sourced) is reduced to 5% in 2020 and to 10% in 2021. The withholding tax rate on interest from existing loans is reduced to 10%.

Read a June 2020 report [PDF 385 KB] prepared by the KPMG member firm in Cambodia

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