An Instruction on tax relief has been issued by the Ministry of Economy and Finance of Cambodia. The instruction reduces withholding tax from 14% to 10% on aircraft leasing for domestic airline operators and the special tax on air transportation services from 10% to 5% for both domestic and foreign airline operators. This initiative, backed by the Prime Minister, aims to ease the tax burden on airlines leasing aircraft from foreign entities and reduce air travel costs air passengers. This measure is effective from June 1, 2024, to May 31, 2027.
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