On October 10, 2024, the Ministry of Economy and Finance issued a Prakas extending tax incentives for tourism businesses in Siem Reap province through June 2025. This follows the expiration of the previous Prakas No. 119, dated February 08, 2024 which provided tax incentives to tourism enterprises in multiple provinces. Unlike the previous incentives that applied to multiple provinces, the 2024 Prakas exclusively focuses on Siem Reap’s tourism sector.
ASPECT | EXPIRED PRAKAS (2023) | NEW PRAKAS (2024) |
Effective Period | October 2023 – June 2024 | July 2024 – June 2025 |
Geographic Scope | multiple provinces (Siem Reap, Phnom Penh, Preah Sihanouk, Kep, Kampot) | Siem Reap Province only |
Monthly Tax Exemptions | Exemption from all monthly taxes except VAT & accommodation tax | Same exemption from July 2024 – June 2025 |
Annual Income Tax | Exempt for 2023, credit toward 2024 | Exempt for 2024, credit toward 2025 |
Audit Exemptions | No audits for 2020-2023 | No audits for 2024 |
Government Policy Supports:
This Prakas aligns with the Royal Government’s ongoing efforts to revive Siem Reap’s tourism sector. On the 1st Anniversary of the 7th Legislature of the National Assembly, Prime Minister Hun Manet reaffirmed the government’s commitment by announcing an extension of the tax exemption for tourism businesses in Siem Reap. The exemption, now extended for another year, will remain in effect until the end of June 2025, providing continued relief to businesses as part of the broader recovery plan.
What’s New for 2024:
- Focus on Siem Reap: The new Prakas is dedicated solely to tourism enterprises in Siem Reap.
- Extended Relief: Tax exemptions continue through June 2025.
- No Audits: Tourism businesses in Siem Reap will not face audits for the 2024 fiscal year.
What to Do Next: Siem Reap-based tourism businesses should ensure compliance with the new Prakas and leverage these continued incentives to support their operations in 2024 and 2025.
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