The Royal Government of Cambodia will continue its relief measures to mitigate the economic impact of Covid-19 and support the recovery of the country’s battered tourism sector, according to an official announcement on 15 July 2022.

The relief measures include:

• Another three months of monthly tax exemptions — except for Value Added Tax (VAT) — for hotels, guesthouses, and travel agencies that are registered with the General Department of Taxation (GDT) and that conduct business in Phnom Penh, Siem Reap, and Preah Sihanouk provinces. The extension will last from July to September 2022.
  NOTE: These businesses remain obliged to file tax returns and use an e-system to manage VAT (E-VAT) each month during this time.
• Debt that was owed to the Royal Government of Cambodia (RGC) at the end of 2019 will continue to be frozen and there will be a continued penalty exemption for tourism businesses in 2022. 
• Tourism businesses are encouraged to organize skill development courses for their employees and may request financial support from the Skills Development Fund as deemed necessary.

Background

The RGC set out a series of measures with a proactive spirit and a high sense of responsibility to continuously control the spread of the virus and maintain the stability of businesses in the hardest hit sectors.

The RGC remains highly cautious even though the Covid-19 situation is now under control. The government recently continued a nationwide vaccination campaign for third, fourth and fifth booster doses to fortify personal immunity and socio-economic resilience. Cambodia has completely reopened all socio-economic activities by reducing health measures and requirements for vaccinated visitors, resulting in a noticeable uptick in business in several sectors that were significantly impacted by the global health crisis.

Additionally, the export of garments, travel accessories, footwear, and Cambodian textiles texture increased by 25.2% by the first half of 2022 compared to the same period last year. For tourism, despite the increase in domestic and international visitors, problems such as the Covid-19 threat and global inflation are still exerting pressure and creating challenges for most tour operators.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.