Cambodia Strengthens Investment Climate with New Tax Law Approval

In a momentous move that underscores Cambodia's commitment to fostering a favorable investment climate, the draft tax law has been officially approved and promulgated, garnering the signature of the esteemed King of the Kingdom of Cambodia on 16th May 2023.

This new legislation comprises 20 comprehensive chapters and 255 articles, meticulously designed to facilitate, improve, and address gaps while ensuring consistency with evolving socio-economic developments and the dynamic business landscape.

The implementation of the new tax law is poised to make significant contributions to the growth and enhancement of Cambodia's business sector. By nurturing a more favorable investment environment, it will attract increased private investment, bolster fiscal compliance, foster fair competition, and empower the nation's economic progress.

Coinciding with this pivotal moment, the Public Procurement Law has also been enacted, featuring 15 chapters and 87 articles. This landmark legislation establishes crucial principles for the clear delineation of roles and responsibilities between the procurement management and enforcement bodies. Moreover, it emphasizes the seamless transfer of authority and procurement responsibilities to implementing institutions, fortifies acquisition mechanisms, and introduces a robust complaint resolution framework, underpinned by a comprehensive punitive regime.

Under the guidance of Samdech Heng Samrin, President of the National Assembly, the ninth session of the National Assembly of the sixth legislature convened on Wednesday, 19th April 2023. During this auspicious gathering, three draft laws were discussed and approved, including the draft law on public procurement and the draft law on the approval of the border trade agreement between the Government of the Kingdom of Cambodia and the Government of the Socialist Republic of Vietnam. These legislative measures hold immense significance in advancing the nation's development, bolstering trade, economy, and society, as well as nurturing cooperation with neighboring countries.

The new draft tax law stands as a testament to Cambodia's progressive approach in aligning its legal framework with evolving socio-economic dynamics. By streamlining processes, reinforcing fiscal compliance, and promoting a conducive investment climate, Cambodia demonstrates its unwavering commitment to driving sustainable growth and fostering prosperous business opportunities for both local and international investors.

Source: Construction & Property News