Market Info

The default tax year for all registered entities is the calendar year commencing from 1 January to 31 December. However, any registered entity with 51% foreign ownership is allowed to request for new tax year-end different from the calendar year.

Source: https://www2.deloitte.com/content/dam/Deloitte/kh/Documents/tax/kh-tax-guide-to-taxation-in-cambodia-2020.pdf

Level of turnover:

• From KHR250 million (~USD62.5K) to KHR700 million (~USD175K); or

• Join in bidding, price consulting or price surveying in supplying goods and services

Source: https://www2.deloitte.com/content/dam/Deloitte/kh/Documents/tax/kh-tax-guide-to-taxation-in-cambodia-2020.pdf

Level of turnover:

– From KHR700 million (~USD175K) to KHR4,000 million (~USD1M); or

– A registered legal entity, representative office; or

– A national and sub-national institution, association and non-governmental organization; or

– Foreign diplomatic and consular mission, international organization and other governement’s technical cooperation agencies

Source: https://www2.deloitte.com/content/dam/Deloitte/kh/Documents/tax/kh-tax-guide-to-taxation-in-cambodia-2020.pdf

Level of turnover:

– More than KHR4,000 million (~USD1M);

– A subsidiary of a multinational company, a foreign branch; or

– A Qualified Investment Project (QIP)

Source: https://www2.deloitte.com/content/dam/Deloitte/kh/Documents/tax/kh-tax-guide-to-taxation-in-cambodia-2020.pdf

According to Law on Commercial Enterprise (LOCE) in Cambodia, the investor intending to open a business is required to set up an entity either in the form of a sole proprietorship, general or limited liability, partnership, public limited liability company, the foreign branch, and the RO, with either a foreign or Cambodian national.

Private Limited Company

To establish a Private Limited Company, the entity should have from 1 to 30 shareholders. The Private Limited Company is not allowed to offer its shares or other securities to the public; however, it is allowed to transfer its shares to the other shareholders.

Public Limited Company

The process of running a Public Limited Company is regulated and has more restrictions compared to other forms of entities. There shall be at least three directors managing the Public Limited Company. The shareholders shall elect directors by an ordinary resolution of shareholders who have the right to vote.

The form of this entity may offer the securities to the public – financial institution and insurance company; however, it is required to have the approval from the relevant authorities.

Foreign Company

A foreign company may set up a branch to start up a business operation in Cambodia which has the same legal entity as its principal.

– Foreign branch: Before commencing a business, a foreign branch should apply for the business registration with the MoC. The procedure of registration of the foreign branch is similar to the Private Limited Company except its own articles of incorporation. In addition, all the liabilities of the branch office will belong to its principle.

– Representative Office (RO): Foreign companies that wish to explore the feasibility of doing business in Cambodia may register as a RO with the MoC. The RO’s activities are confined to market research, feasibility studies, advertising and marketing activities on behalf of its head office. The RO is prohibited from entering into any contractual arrangements facilitation for selling goods or services.

– Subsidiary: Foreign investors who wish to have at least 51% shareholding of a legal entity in Cambodia should establish their entity in the form of a limited company which maintains nationality as a foreign entity. However, a foreign nationality in Cambodia is not eligible to hold the land right as mentioned above.

Source: https://www2.deloitte.com/content/dam/Deloitte/kh/Documents/tax/kh-tax-guide-to-taxation-in-cambodia-2020.pdf

The Ministry of Labor and Vocational Training (“MLVT”) has recently issued Prakas No. 243/22 on Public Holidays for 2024, dated 26 September 2023 with a total of 21 Public Holidays. The purpose of this Prakas is to inform that workers/employees of all factories/enterprises stipulated in Article 1 of the Cambodian Labor Law shall be entitled to the following paid holidays in the year 2023:

• 01 January International New Year’s Day – 01 day off
• 07 January Victory Over Genocide Day – 01 day off
• 08 March International Women’s Day – 01 day off
• 13-14-15-16 April Khmer New Year’s Days – 04 days off
• 01 May International Labor Day – 01 day off
• 14 May King Norodom Sihamoni’s Birthday – 01 day off
• 22 May Visak Bochea Day – 01 day off
• 26 May Royal Plowing Ceremony – 01 day off
• 18 June Queen Norodom Monineath Sihanouk’s Birthday – 01 day off
• 24 September Constitutional Day – 01 day off
• 01-02-03 October Pchum Ben Festival – 03 days off
• 15 October Commemoration Day of Former King Norodom Sihanouk – 01 day off
• 29 October King Norodom Sihamoni’s Coronation Day – 01 day off
• 09 November National Independence Day – 01 day off
• 14-15-16 November Water Festival – 03 days off

Source: Prakas No. 274/23 on 2024 Public Holidays by MLVT

(Effective Date: 31-Mar-1997): The employer has the right to grant his worker special leave during the event directly affecting the worker’s immediate family.

If the worker has not yet taken his annual leave, the employer can deduct the special leave from the worker’s annual leave.

If the worker has taken all his annual leave, the employer cannot deduct the special leave from the worker’s annual leave for the next year.

Hours lost during the special leave can be made up under the conditions set by a Prakas of the Ministry in Charge of Labor.

Source: https://www.mlvt.gov.kh/index.php/en/official-docs/royal-code/40-%E1%9E%96%E1%9F%92%E1%9E%9A%E1%9F%87%E1%9E%9A%E1%9E%B6%E1%9E%87%E1%9E%80%E1%9F%92%E1%9E%9A%E1%9E%98/88-%E1%9E%85%E1%9F%92%E1%9E%94%E1%9E%B6%E1%9E%94%E1%9F%8B%E1%9E%9F%E1%9F%92%E1%9E%8A%E1%9E%B8%E1%9E%96%E1%9E%B8%E1%9E%80%E1%9E%B6%E1%9E%9A%E1%9E%84%E1%9E%B6%E1%9E%9A-labour-law.html

(Effective Date: 31-Mar-1997): Unless there are more favourable provisions in collective agreements or individual labour contracts, all workers are entitled to paid annual leave to be given by the employer at the rate of one and a half workdays of paid leave per month of continuous service.

LABOR LAW (1997)

Any worker who has not worked for two continuous months is entitled, at the termination of his labour contract, to compensation for paid leave calculated in proportion to the amount of time he worked in the enterprise.

For jobs that are not performed regularly throughout the year, a worker is considered to have met the condition of continuous service if he works an average of 21 days per month.

The length of paid leave as stated above is increased according to the seniority of workers at the rate of one day per three years of service. Official paid holidays and sick leave are not counted as paid annual leave.

Source: https://www.mlvt.gov.kh/index.php/en/official-docs/royal-code/40-%E1%9E%96%E1%9F%92%E1%9E%9A%E1%9F%87%E1%9E%9A%E1%9E%B6%E1%9E%87%E1%9E%80%E1%9F%92%E1%9E%9A%E1%9E%98/88-%E1%9E%85%E1%9F%92%E1%9E%94%E1%9E%B6%E1%9E%94%E1%9F%8B%E1%9E%9F%E1%9F%92%E1%9E%8A%E1%9E%B8%E1%9E%96%E1%9E%B8%E1%9E%80%E1%9E%B6%E1%9E%9A%E1%9E%84%E1%9E%B6%E1%9E%9A-labour-law.html

In this article we discuss the latest law updates on the minimum wage in Cambodia. For more information on the labor law, investment law, commercial enterprise law and more, check out our Library of Laws section on the website.

What is the minimum wage in Cambodia?

The Ministry of Labour and Vocational Training (“MLVT”) issued Prakas 247 on 21 September 2022 that Cambodia’s government has agreed to increase the monthly minimum wage to USD200 from the current USD198. Under Prakas 247, this raise in the minimum wage in Cambodia was effective from 1 January 2023 and only applies to the textile, garment, and footwear and travel goods industries.

Workers will continue to receive their benefits such as attendance bonuses, travel and accommodation bonuses, meal allowances, and overtime pay.

Who determines the minimum wage in Cambodia?

The National Council on Minimum Wage (NCMW), a tripartite body comprising equal representation of labor unions, employer’s associations, and the government sets the minimum wage. The Ministry of Labor and Vocational Training announced the results of a tripartite vote on four possible wage increases: USD198, USD206, USD210, and USD213. Of the 51 council members, 46 voted for USD198 which was increased to USD200 after an intervention by Cambodia’s Prime Minister Hun Sen.

In determining the minimum wage, the NCMW studies the following criteria:

• Inflation;
• Cost of living;
• Productivity;
• Competitiveness;
• Sector profitability; and
• The current labor market situation.

What benefits do workers receive under the minimum wage in Cambodia?

In addition to the minimum wage, workers will also receive the following benefits:

• Attendance bonus — USD10 per month;
• Travel and accommodation expenses — USD7 per month;
• Meal allowances — USD 0.50 per day; and
• Overtime and seniority bonus — USD2-USD11 per month for those between their second to the eleventh year of work.

To note: workers who are paid based on productivity can earn more than the minimum wage; however, if the amount they produce earns them less than the minimum wage, then the employer has to add the remainder to a total of USD200 or USD198 for workers on probation.

What was the previous minimum wage in Cambodia before the increase?

On 28 September 2021, the Ministry of Labour and Vocational Training (“MLVT”) issued Prakas 264 on the Determination of Minimum Wage in Cambodia for Workers in the Garment, Textile, Footwear, Travel Product and Bag Sectors, to set new minimum wage in Cambodia, which was effective from 1 January 2022.

Under Prakas 264, workers in the relevant sectors were entitled to:

• For regular workers, USD 194 per month.
• For probationary workers, USD 192 per month.

Prakas 264 set the minimum wage in Cambodia for piece-rate workers.  For such workers, the pay rate is to be determined based on their level of production and, in case such production gives rise to a higher pay rate than the minimum wage in Cambodia, the workers will be entitled to such a higher amount.

However, if their production gives rise to a pay rate lower than the minimum wage, the employer must adjust the workers’ pay, such that the total pay is at least equal to the minimum wage in Cambodia (USD 194 for regular workers and USD 192 for probationary workers).

Other benefits that such workers have received remain unchanged, such as compensation for transportation or accommodation allowance of USD 7 per month, attendance bonus of USD 10 per month, the food allowance of USD 0.5 per day (or one free meal per day) for those who work overtime and seniority bonus from USD 2 to USD 11 per month for those in their second to the eleventh year of work. 

Under the Law on Minimum Wage in Cambodia, which was promulgated on 6 July 2018, the key factors in determining the minimum wage include social considerations (such as inflation rates and living expenses); and (2) economic considerations (such as productivity, competition, job market status and profitability of a particular industry). The discussions on the minimum wage are conducted on an annual basis unless decided otherwise by the National Council on the Minimum Wages, and such minimum wage is determined by a Prakas issued by the MLVT.

Source: Prakas No. 247/22 on Minimum Wage by MLVT

From 8 September 2021 non-resident entities who provide digital goods/services or e-commerce activities to Cambodian consumers and who expect to have sales of USD15k or more before the end of the year, over three consecutive months, have 30 days to register for VAT with the General Department of Taxation (GDT) in Cambodia.

From 2022 onward the same non-resident entities, as described above, expect to have sales of USD62.5k or more in 2022 or future years, or expected sales in any calendar year of USD15k or more for three consecutive months, will need to register for VAT within 30 days.

Once registered for VAT non-resident entities will need to invoice customers in Cambodia with respect to B2C and B2B transactions. The VAT registered non-resident will need to file monthly VAT declarations and pay the 10% VAT on B2C sales to the GDT.

Registered taxpayers who receive digital goods/services or e-commerce activities from a non-resident (B2B transaction), whether the non-resident has registered for VAT or not, will need to pay 10% VAT to the GDT on behalf of the non-resident under a VAT reverse charge mechanism.

Detailed Analysis

In April of this year, Sub-decree No. 65 S.E on the Implementation of Valued Added Tax on E-Commerce (“Sub-decree 65”) was enacted with the stated purpose of introducing the conditions and mechanism for the collection of VAT on the provision of digital products, services and e-commerce activity by non-resident entities to consumers in Cambodia. Please refer to our earlier update here.

The issuance of Sub-decree 65 was a response by the Cambodian authorities to the growth of e-commerce trade in the Kingdom which has allowed overseas suppliers to provide digital goods and services to customers in Cambodia without the need to have a brick and mortar office in-country thereby making it difficult to tax these transactions. This type of special circumstance was contemplated in Article 75(2) of the Law on Taxation.

Article 75(2) of the Law on Taxation provided the ability to the Cambodian Government to issue a Sub-decree to impose special conditions concerning the liability to collect, declare and pay VAT where the supplier of the taxable supply that is consumed in Cambodia is not engaged in business in Cambodia or where there are other obstacles relating to the collection of VAT from the supplier.

Prakas 542 MEF.P on the Rules and Procedure for the Implementation of VAT on E-Commerce (“Prakas 542”) was passed on the 8th of September 2021 and as its name suggests it provides further detail on how Sub-decree 65 will be implemented. We provide further detail on the salient points of Prakas 542 below.

Who is Impacted?

Those parties primarily impacted by the recent regulatory updates are non-resident suppliers of digital goods, services and e-commerce activity (“Non-resident E-Supplier”) and importantly those registered taxpayers in Cambodia (“Taxable Person”) who transact with the aforementioned non-resident suppliers under a B2B transaction. The obligations for both Non-resident E-Suppliers and Taxable Persons are far-reaching and the failure to comply with these obligations could result in severe penalties.

Non-resident E-Supplier in Cambodia

Under a Prakas 542 a Non-resident E-Supplier who expects to have annual turnover to its Cambodia consumers (both individual and business) of Khmer Riel 250 million (approximately USD62.5k) or expected turnover within any three consecutive months that end in the current calendar year that exceed Khmer Riel 60 million (approximately USD15k) are now obliged to register for VAT within 30 days.

Practically what this means is that from September 2021 Non-resident E-Suppliers need to ask themselves will my revenue generated from sales to Cambodia customers exceed USD15k by the end of 2021? If the answer is yes then those suppliers would have 30 days to register for VAT – if the answer is no then the suppliers can wait until 1 January 2022 and then make an assessment at that time whether they will have turnover in 2022 of more than USD62.5k or expect to have turnover in any three consecutive months in 2022 that exceeds USD15k.

For those Non-resident E-Suppliers who do meet the threshold to register for VAT the new Prakas outlines the process and documentation that is required. Practically speaking Non-resident E-Suppliers may need to use a registered Tax Agent in Cambodia to complete the Tax Registration process for them which requires the following documents, (if not in Khmer or English language translated documents are required), to be submitted:

• VAT registration application,
• Non-resident taxpayer registration documents,
• Valid identification documents of owner or representative (ID card or passport),
• Two current 35 x 45mm passport photos not older than 3 months of the director or representative,
• Bank account details of the non-resident issued by or printed from the bank.

The fee to register for VAT is Khmer Riel 400,000 (approximately USD100) and should there need to be any updates to the information provided the fee for such updates is Khmer 200,000 (approximately UDS50).

Upon completion of the VAT registration process the Non-resident E-Supplier shall receive the following:

• A simplified VAT registration certificate,
• Tax registration certificate,
• Notice on tax compliance.

If a Non-resident E-Supplier fails to register for VAT, whether voluntarily or at the invitation of the tax authority in Cambodia, the tax authority can unilaterally register the Overseas E-Supplier and issue a tax re-assessment of the taxes that they believe have not been paid – along with penalties and interest. Obstruction of the tax law includes failure to register with the tax authority and an entity that obstructs the implementation of the tax law is liable to a fine from 5 million Khmer riel (approximately USD1,250) to 10 million Khmer riel (approximately USD2,500) and/or to imprisonment from 1 month to 1 year.

Invoicing

Once registered for VAT in Cambodia the Non-resident E-Supplier will need to issue tax invoices for each transaction it makes to consumers in Cambodia. That would include transactions with individuals (B2C) and transactions with Taxable Persons in Cambodia (B2B).

Invoices issued by the VAT registered Non-resident E-Supplier would need to include:

• The name, address, and VAT registration number of the Non-resident E-Supplier
• Name and address of the customer, and in a B2B transaction their VAT registration number
• Invoice number and date of issuance,
• Description of the good/service
• The taxable value and VAT (in a B2B transaction) or the total value of the supply inclusive of VAT (in a B2C transaction).
• In a B2C transaction the Non-resident E-Supplier would need to declare and pay the VAT charged to the GDT by the 20th of the month following the month in which the supply was made. A supply is determined to be made at the earlier of when the invoice was issued, goods delivered or payment received.

In a B2B transaction, the Non-resident E-Supplier would need to show the VAT charged as a separate line item in the issued invoice and declare the VAT charged in its monthly VAT declaration however the obligation to actually pay the VAT charged by the Non-Resident E-Supplier to the GDT rests with the Taxable Person under the VAT reverse charge mechanism.

Taxable Person

The VAT reverse charge mechanism is novel to Cambodia and increases the compliance obligation significantly for those Taxable Persons in Cambodia who transact with Non-resident E-Suppliers. An important point to note is that the obligation for a Taxable Person to apply the VAT reverse charge exists regardless of whether the Non-resident E-Supplier has registered for VAT in Cambodia or not.

Under the VAT reverse charge mechanism a Taxable Person who receives a supply of digital goods, services or e-commerce activities from a Non-resident E-Supplier, regardless of whether or not they are registered for VAT, will need to declare and make the payment of the VAT to the GDT by the 20th of the following month in which the supply takes place.

This works in a similar fashion to the withholding tax regime in Cambodia whereby a registered taxpayer who makes payments of Cambodian sourced income to a non-resident is obliged to withhold and pay withholding tax to the GDT on their behalf. In practice, however, the compliance obligation for a Taxable Person under Prakas 542 seems to be somewhat higher than that of a Withholding Agent.

Under Prakas 542 a Taxable Person would need to undertake the following:

When dealing with a Non-resident E-Supplier that has not registered for VAT, the Taxable Person would need to make a judgment as to whether or not the supply constitutes a digital good, service or e-commerce activity.

The latter is a little complex as can be seen by the extensive and non-exhaustive list of e-commerce activities annexed in Sub-decree 65 which can include for example tangible products purchased online, online advertising, customer support, online consultancy, data-warehousing, streamed content, online shopping portals etc.

Tax advisors and internal finance personnel will now be required to learn very quickly what constitutes e-commerce activities to ensure that the requirement to pay the VAT reverse charge is adhered to by their clients and businesses respectively.

A Taxable Person will also need to be aware that for VAT invoices issued by Non-resident E-Suppliers who have registered for VAT that they will also be responsible for paying the 10% VAT to the GDT, on behalf of the VAT registered Non-resident E-Supplier, under the reverse charge mechanism.

When it comes to the Taxable Person actually declaring and making the payment of the VAT reverse charge there is also currently uncertainty as to how this is done. A bank receipt could be provided evidencing that the VAT reverse charge has been paid to the GDT but there is currently no provision in the monthly VAT declaration to show the VAT reverse charge details.

VAT Input Credit

A Taxable Person is allowed to claim a VAT input credit on the supplies it receives from a Non-resident E-Supplier provided that the Taxable Person has paid the VAT reverse charge to the GDT. Interestingly a VAT input credit appears to be allowed even in the event that the Non-resident E-Supplier has not registered for VAT which is re-enforced by the obligation under Article 40 of the Sub-decree on VAT, requiring a tax invoice or bill of entry for import, being deliberately excluded from the criteria under which an input credit can be claimed in Article 8 of Prakas 542.

Commentary

The enactment of Sub-decree 65 and Prakas 542 in Cambodia were inevitable when we look at global development trends with respect to the taxation of e-commerce as governments around the world become more concerned around tax leakages arising from the inability to tax a supplier who does not have a physical presence in their jurisdiction.

It will be interesting over the coming months to see how many of the large players in the e-commerce sector feel compelled to register for VAT in Cambodia under this new development. Concerns still linger with respect to the interplay of the VAT registration requirement under Prakas 542 and the expansive definition of permanent establishment (PE) under Cambodia’s Tax on Income regulations which provide that a non-resident taxpayer who carries out e-commerce activities is considered to have a created a PE if the goods or services are supplied or used in Cambodia.

By specifically stating that VAT registration is required for Non-resident E-Suppliers who do not have a PE in Cambodia the new e-commerce regulations appear to have knocked back the wide expanse of the PE definition. If the tax authority wishes to encourage compliance and VAT registration by the large e-commerce players we suggest that it should clarify this issue which could be seen as a deal breaker for some when it comes to the registration obligation.

Some may also see the liberal allowance of obtaining VAT input credit in the instance that a Non-resident E-Supplier does not register for VAT as not incentivizing voluntary VAT registration. If a VAT input credit was not allowed, in the scenario where the Non-resident E-Supplier was not VAT registered, the tax registered consumer in Cambodia would need to bear the cost of making the VAT reverse charge but would not be allowed the input credit thereby dis-incentivizing it to transact with unregistered Non-resident E-Suppliers.

What is also problematic is the additional compliance obligation that is now place on those registered taxpayers who in a number of cases may be the unwitting consumer of an e-commerce activity that would be captured under the expansion list of e-commerce activities in Sub-decree 65. Failure of a registered taxpayer to pay the VAT reverse charge from September 2021 is going to result in re-assessed tax, penalties and interest and the potential to be unable to obtain a corresponding VAT input credit. The stakes are quite high and it will be incumbent for tax advisors and internal finance teams alike to educate themselves on the types of transactions that will create a VAT reverse charge obligation for their clients and businesses respectively.

We understand and sincerely hope, that further clarification will be forthcoming over the coming weeks from the GDT regarding the implementation of Prakas 542.

Source: https://www.dfdl.com/resources/legal-and-tax-updates/cambodia-new-prakas-on-vat-for-e-commerce/

Pursuant to Prakas 448 on the Registration of Enterprises and their employees with the National Social Security Fund (“NSSF”) for persons governed by the Labour Law (“Prakas 448”), all enterprises regulated by the Law on Social Security Schemes must immediately register themselves and their employees for the occupational risk scheme (covering work-related accidents and occupational disease insurance) and healthcare scheme. Enterprises that are already operating but are yet to register with the NSSF must do so by 10 December 2017.

Enterprises that are established after the issuance of Prakas 448, must register with the NSSF within 30 days from the commencement of operations.

Enterprises that are already registered with the NSSF for the occupational risk and health care schemes are not required to re-register with the NSSF.

Moving forward, enterprises must register their employees with the NSSF no more than three days after the commencement of employment, except for employees who already hold an NSSF membership card. This requirement does not apply to employees who already possess a valid NSSF membership card.

Every business employing one or more workers must register its business and workers with the NSSF for the Occupational Risk Scheme (for work-related accidents and occupational diseases) and the Health Care Scheme. Once registered, the business must pay to the National Social Security Fund (NSSF):

• A monthly contribution equivalent to 0,8% of each worker’s monthly average wages (between USD0.40 and USD2.40 per month per worker) for the Occupational Risk Scheme.
• A monthly contribution equivalent to 2.6% of a worker’s monthly average wages (between USD1.30 and USD7.80 per month per worker) for the Health Care Scheme.

The government issued Sub-Decree No. 32 dated 4 March 2021 on the Pension Fund Scheme for persons defined in the Labour Law (Sub-Decree 32). Under Sub-Decree 32, a business that employs one or more employees must register with the National Social Security Fund (NSSF) for the Pension Fund Scheme within 30 days after the sub-decree becomes effective.

If the business is already registered for the Health Care Scheme and Occupational Risk Scheme, it must register workers with the Pension Scheme within three days from the date of the worker’s commencement of employment. Contribution to the compulsory pension scheme will be jointly paid by the employer and the employee at the same rate of 2% (total of 4%) of the contributable wage for the first five years. Sub-Decree 32 does not indicate the date on which the Pension Scheme will be implemented. It merely states that this will be determined by a separate joint Prakas of the MLVT and MEF.

Source: https://www.dfdl.com/resources/legal-and-tax-updates/cambodia-legal-alert-new-national-social-security-fund-registration-requirements/

MLVT Notification No. 023/19 dated 8 July 2019 on the entitlement to retroactive seniority payments (prior to 2019) and ongoing seniority payments (from 2019 onwards) for the textile, garment, and footwear industries.

Once again, all employers are reminded that the seniority payment described in the amendment to the Labor Law is applicable to employees that are employed under a UDC.
Employees employed under a fixed duration contract (“FDC”) are instead entitled to severance pay, proportional to their wages and the duration of the contract. The exact severance amount may be determined in a collective bargaining agreement, but if it is not, the severance pay will be set at 5% of the wages employees have been entitled to during the duration of their contract.

Per prior MLVT regulations, the duration of an FDC cannot be longer than two years. The FDC may be renewed or extended one or more times as long as the total duration of all renewals or extensions does not exceed two years. If an FDC exceeds such limits, it automatically becomes a UDC. Employers who have been using FDCs that exceed the maximum duration will have those FDCs become UDCs by the end of 2019 at the latest, and must then pay seniority payments from the date that the FDC became a UDC, in accordance with Prakas No. 443 and other applicable regulations.

If employees under such converted UDCs have already received severance pay of 5%, they are not entitled to claim a seniority payment.
Both retroactive and ongoing seniority payments are exempt from taxes.
Employees are not entitled to a seniority payment in the case of an employee’s unilateral resignation or serious misconduct.

Ministerial Instruction No. 057/19 dated 10 June 2019 on the payment of retroactive seniority payments by employers in the textile, garment, and footwear industries

This is applicable to employers and employees in the textile, garment, and footwear industries, and covers retroactive seniority payments only.

METHOD TO COUNT AN EMPLOYEE’S WORK SENIORITY IN CAMBODIA

Years of service prior to 2008 are not subject to the retroactive seniority payment. The maximum ceiling of the retroactive seniority payment to be paid is capped at six months (equal to 156 days) of the actual average wages(excluding fringe benefits) of each particular year for service years from 2008 to 2018.

In the first year of employment, a confirmed employee who has continuously worked for an employer for from one to six months (excluding the probation period) is entitled to a seniority payment calculated at 7.5 days. If s/he has worked longer than six months, the retroactive seniority payment would be for the full year, calculated at 15 days.

METHOD TO CALCULATE THE RETROACTIVE SENIORITY PAYMENT

Ministerial Instruction No. 057/19 provides a formula with examples (not discussed here) to calculate the retroactive seniority payment for each applicable year from 2008 to 2018.

Step 1: Calculate the average actual wage per month
Average actual wage per month = Total monthly actual wages during the period for which the retroactive seniority payment applies ÷ Number of total months during the period for which the retroactive seniority payment applies

Step 2: Calculate the average actual wage per day
Average actual wage per day = Average actual wage per month ÷ 261

Step 3: Multiply the average actual wage per day with the number of days of the retroactive seniority payment
Retroactive seniority payment per year = Average actual wage per day × 152

METHOD OF PAYMENT FOR THE RETROACTIVE SENIORITY PAYMENT

Payments equal to 15 days of average actual wages must be made twice a year. The first payment is payable at the same time as the second installment payment of wages due in June, and the second must be paid at the same time as the second installment payment of wages due in December. Retroactive seniority payments must be paid based on the actual years of service of each employee for the period from 2008 to 2018.
Employers must separate employees’ monthly wages from the retroactive seniority payment to avoid any confusion regarding tax obligations.

RETROACTIVE SENIORITY PAYMENTS BASED ON EMPLOYMENT CONTRACT CATEGORY

If an FDC was used for a period exceeding the limits of the law (as explained above), counted as of 2018, the retroactive seniority payment must be determined as below.

If an employee has already received severance pay (5%) at each FDC’s expiration date, s/he is not entitled to a retroactive seniority payment.
If an employee has not received severance pay (5%) at each FDC’s expiration date, a retroactive seniority payment must be made and calculated as explained above by counting the employee’s seniority from the date of signing the first employment contract.
If an FDC becomes a UDC in any year up to the end of 2018, the retroactive seniority payment must be paid as follows:

If an employee has already received severance pay (5%) at each FDC’s expiration date during the period when the FDC was used, the employer must pay retroactive seniority payments that have not been paid from the time when the UDC was put in place up through 2018 only.
If an employee has NOT received severance pay (5%) at each FDC’s expiration date, the employer must pay retroactive seniority payments in compliance with the basis, formula, and methods described above. In such a case, work seniority must be counted from the date the employee signed the first employment contract.

EMPLOYEE TERMINATION

If employees are terminated without a valid reason, they are entitled to the following items:
Unpaid wages up to the termination date
Compensation in cash in lieu of prior notice (applicable in a case where an employer has not given prior notice as required by the applicable laws and regulations)
Compensation in cash for untaken annual leave up to the termination date
Seniority payment entitlement for the half-year in which the employees are terminated, equal to 7 days of wages and fringe benefits if employees have remaining work seniority of from one month to less than six months
Total retroactive seniority payments that have not been paid
Besides items 1 to 4 above, employees may claim damages equal to the seniority payment owed to them, but not exceeding six months of wages and fringe benefits. In this case, employees are released from obligations to provide proof of their damages claim. However, if the employer does not agree with the damages claim, the employee may submit the case to the competent ordinary court for a decision.
Employees terminated for serious misconduct are entitled to the following items:
Unpaid wages up to the termination date
Compensation in cash for untaken annual leave up to the termination date

Common Principles

The work seniority used to calculate the retroactive seniority payment must be counted from the date the confirmed employee signed the employment contract excluding the probation period.
Confirmed employees who have worked for employers at least 21 days are considered as having worked for one full month and are entitled to receive the retroactive seniority payment.
The actual wages used for the basis of calculating the retroactive seniority payment due are the actual wages excluding other benefits such as healthcare benefits, occupational risk benefits, and overtime payments.
For employees who have retired or died any time from 2019 onwards, employers must pay all of the remaining seniority payments to those employees or their living heirs.
Periods of maternity leave, sick leave, and work-related accident leave are counted as employees’ work seniority for the purpose of calculating the retroactive seniority payment.
Retroactive seniority payments must be paid together with the second instalment payment of wages for June and December. Thus, when employers pay the second instalment payment of wages for June and December each year, employees in the textile, garment, and footwear industries who have work seniority before 2019 will receive: (i) the second instalment payment of wages for June and December; (ii) the current seniority payment of each half-year calculated at 7.5 days; and (iii) the retroactive seniority payment (if any).
Employees and employers must keep evidentiary documents, such as payslips or receipts or the equivalent and have them signed or thumb-printed by both parties for each retroactive seniority payment.
Ministerial Instruction No. 058/19 dated 10 June 2019 on the payment of ongoing seniority payments

The instruction applies in general to all employers within the scope of the Labor Law, regardless of whether they are or not they are in the textile, garment, and footwear industries.

METHOD TO COUNT WORK SENIORITY

From 2019 onward, employees’ work seniority for ongoing seniority payments are counted each half-year: the first half-year is counted from January to June, and the second from July to December.
Confirmed employees who have worked for from one to six months within each half-year and have worked until the end of each half-year (June and December) are entitled to an ongoing seniority payment equal to 7.5 days of wages and fringe benefits for each particular half-year.
Employees that have resigned before the end of June or December are NOT entitled to the ongoing seniority payment for that particular half-year.

METHOD TO CALCULATE ONGOING SENIORITY PAYMENTS

Step 1: Calculate wages and fringe benefits per month
Wages and fringe benefits per month = Total wages and fringe benefits for the half-year ÷ 6 months or the number of actual months worked3

Step 2: Calculate wages and fringe benefits per day
Wages and fringe benefits per day = Wages and fringe benefits per month ÷ 22 days or 24 days or 26 days (based on the actual number of working days per month)

Step 3: Calculate the ongoing seniority payment for each half-year
Ongoing seniority payment for each half-year = Wages and fringe benefits per day × 7.5

METHOD TO PAY THE ONGOING SENIORITY PAYMENT

Ongoing seniority payments must be paid together with the second instalment payment of wages to employees (paid twice a month) for June and December.
Employers must divide the monthly wages and ongoing seniority payment into two separate payment packages for ease of tax payment.

EMPLOYEE TERMINATION

If employees are terminated without a valid reason, they are entitled to the following items:
Wages that have not been paid up to the termination date
Compensation in cash in lieu of prior termination notice (if employees have not been given the notice as required by the applicable laws and regulations)
Compensation in cash for annual leave that has not been taken up to the termination date
Ongoing seniority payment for the particular half-year in which the employees are terminated, equal to 7 days of wages and fringe benefits if employees still have work seniority of from one to six months
Total retroactive seniority payment that has not been paid to the employees

Besides the first four points above, employees have the right to claim damages equal to the ongoing seniority payment employees are entitled to, but not exceeding six months of wages and fringe benefits. in such a case, employees are released from obligations to provide evidence of their damages claim. However, if the employer does not agree with the damages claim, the employee may submit the case to the competent ordinary court for a decision.

Employees terminated for serious misconduct are entitled to the following items:
Wages that have not been paid up to the termination date
Compensation in cash in lieu of the remainder of all untaken annual leave.

COMMON PRINCIPLES

The work seniority used to calculate employees’ ongoing seniority payments must be counted from the date the confirmed employee signed the employment contract excluding the probation period.
Confirmed employees who have worked for employers for at least 21 days are considered as having worked for one full month and consequently, will be entitled to ongoing seniority payment.
Wages and fringe benefits used for the basis of calculating the ongoing seniority payment due from 2019 onward are the gross amount before tax.
For employees who have retired or died any time from 2019 onward, those employees or their heirs will receive the following:
The remaining retroactive seniority payment they are entitled to
The ongoing seniority payment of any particular half-year during which employees have retired or died, equal to 7 days of wages and fringe benefits if they have work seniority with the employer of from one to less than six months
Periods of maternity leave, work-related accident leave, and sick leave are counted as work seniority for the basis of calculating the ongoing seniority payment. In contrast, other benefits, such as occupational risk benefits and healthcare benefits received during the above-listed leaves are not included in the calculation of the ongoing seniority payment.
From 2019 onward, each time employers make the second installment payment of wages for June and December, they must make the following payments:
The second installment of wages for June and December
The ongoing seniority payment of 7.5 days for each particular half-year
The retroactive seniority payment, if any
Employees and employers must keep evidentiary documents, such as payment slips or receipts or the equivalent and have them signed or thumb-printed by both parties for each half-year seniority payment.

Source https://www.vdb-loi.com/kh_publications/cambodia-legal-update-seniority-payments-new-regulations-bring-some-things-into-clearer-focus/

The Council for the Development of Cambodia (CDC) is an executive agency of the Royal Government of Cambodia and the highest decision-making body. It serves as the “Etat-Major” and the “One-Stop Service” of the Royal Government, responsible for rehabilitation and development, public and private investments, and the establishment and management of special economic zones. This government agency is chaired by the Deputy Prime Minister, H.E. Mr. Sun Chanthol, ensuring high-level oversight and support for investment projects. The CDC has the following organizational structure:

• The Cambodian Rehabilitation and Development Board (CRDB) being under the direct supervision of a Secretary General which is the key component of the CDC, focusing on the coordination of development assistance and aid effectiveness in the country.
• The Cambodian Investment Board (CIB) being under the direct supervision of a Secretary General to handle general investment activities, including the approval and monitoring of investment projects and to provide services related to investment incentives, such as tax holidays and duty exemptions.
• The Cambodian Special Economic Zones Board (CSEZB) being under the direct supervision of a Secretary General to oversee the establishment and management of Special Economic Zones (SEZs) in Cambodia, which are designated areas offering specific advantages to businesses, such as improved infrastructure and streamlined regulatory processes.
• The General Secretariat of the CDC being under the direct supervision of the Secretary General of the CDC.

Vision

CDC’s vision is to be the Government Investment Promotion Agency with efficient and effective work and outputs, delivering benefits to the people of Cambodia through increased investment. Its purpose is to manage the Cambodian Government’s private sector investment policy and help attract and retain productive private sector investment.

Mission

CDC’s mission is to promote and facilitate foreign and local investments to achieve a healthy private sector in Cambodia’s development with commitment to speeding up new investment project approvals and providing a truly effective one-stop service to all investors. To achieve this mission, CDC:

• Provide information to potential investors
• Review investment applications and grant incentives
• Monitor investment projects after implementation
• Provide after-care service to investors in their projects’ implementation
• Provide a platform for private sector to participate in policy dialogue with the government through biannual Government-Private Sector Forum

CDC also works closely with other government agencies and leverage its operational arms of the Cambodian Investment Board (CIB) and the Cambodian Special Economic Zone Board (CSEZB) to ensure that our investors are efficiently supported.

Value

CDC embodies:

• A strong client focus
• Cooperation within CDC and with other agencies
• Integrity and honesty
• Openness to new ideas
• Team work and communication

Roles and Responsibilities

The CDC shall be the executive agency of the Royal Government and shall have the following responsibilities:

• To be the “Etat-Major” and the “One-Stop Service” of the Royal Government responsible for the rehabilitation and development, public and private investments, and the establishment and management of special economic zones;
• To work with all development partners and NGOs in order to sensitize them to the economic strategy conception and the priorities of the country development of the Royal Government to effectively coordinate the reception and the allocation of development assistance according to the needs and priorities by emphasizing the Royal Government’s ownership in order to achieve greater results for the nation;
• To facilitate and coordinate works between ministries and other governmental institutions with development partners and NGOs as well as investors;
• To guide the distribution and utilization of public and private resources in the development of Cambodia;
• To facilitate and streamline administrative procedures for development partners and investors;
• To review and decide on all the matters pertaining to the rehabilitation and development works and investment projects of development partners, private investments and the establishment and management of special economic zones.

Source:

1. The Council for the Development of Cambodia (CDC)
2. Sub Decree on The Organization and Functioning of The Council for the Development of Cambodia

Effective Date (18-Mar-2019): Following the introduction of Prakas 986 (transfer pricing regulations), Instruction Letter 151, which permitted interest-free loans between related parties, was withdrawn, and under Instruction 11946, such loans are required to bear interest on an arms-length basis.

On 18 March 2019 the GDT issued Instruction Letter 4909, which states that taxpayers with loans from related parties must have the following documentation:

• A loan agreement in which the terms of the loan are clearly stated;
• A business plan describing the needs for the loan and intended uses of the funds;
• A document explaining the basis used to determine the interest rate; and
• A Board of Directors’ resolution approving the taking of the loan.

The Instruction Letter also provides that the loan must be properly supported by transfer pricing documentation even if the interest applied is lower than the annual market rate issued by the tax authority.

We understand that in certain circumstances interest-free shareholder loans may still be permissible provided that the criteria outlined above are followed and that the loan is used for capital expenditure in Cambodia and not profit extraction.

Source: https://www.dfdl.com/resources/publications/investment-guides/cambodia-2020/

The limited liability company is the most common form of investment vehicle in Cambodia. It is usually established as a subsidiary of an investor’s offshore holding company. The limited liability company can be 100% Cambodian-owned, 100% foreign-owned, or have any combination of Cambodian or foreign shareholding, subject to certain restrictions. Find out more about our free business resources here

A limited liability company is formed with registration of its articles of incorporation (Articles) at the MOC, and receipt of a certificate of incorporation from the MOC. Any changes to the Articles and other corporate documents must also be registered in a timely manner at the MOC to be valid.

After establishment, a limited liability company must prepare and maintain, at its registered office, the following records:

• the Articles and the bylaws and all amendments thereto;
• minutes of meetings and shareholders’ resolutions;
• copies of all notices to be sent or filed in accordance with the LCE;
• a securities register; and
• accounting records

A limited liability company must issue a minimum of 1,000 shares with a par value of not less than KHR 4,000 per share (approximately one US dollar). The company has only one class of share unless the Articles specify other classes. Subject to differing class rights, shareholders have the right to vote at any meeting of the shareholders, receive any dividends declared by the company, and receive the remaining property of the company upon dissolution. If the Articles provide for more than one class of share, the rights of each class of share may (theoretically) be absolute, relative, or contingent, and the rights, privileges, restrictions, and conditions attaching to the shares of each class must be detailed in the Articles.

The board of directors has broad powers to manage the business and affairs of the company,

Including the powers to:

• appoint and remove officers and fix their salaries;
• issue, reissue or sell securities of the companies;
• adopt resolutions; and
• provide guarantees on behalf of the company.

Directors must act in good faith, within the scope of the company’s business objectives, within the framework of the company’s Articles and in compliance with applicable laws. Additionally, directors must comply with relevant registration, filing, and publication requirements of the company. Accounting books and records of the relevant financial year must be duly maintained at the registered office for ten more years.

At every annual shareholders’ meeting, the directors must present an annual financial statement to the shareholders. Annual financial statements must be approved by the board of directors and be accompanied by the auditor’s report (subject to limited circumstances whereby appointment of an auditor may be waived by shareholder resolution) before being issued, published and circulated.

Type of Limited Liability Company

Under the LCE, the types of limited liability companies permitted are listed below. The LCE describes in detail the distinction between these forms.

Form Characteristics:

– Single-Member Private Limited Company

A private limited company with one physical or legal person as the shareholder. Requires a minimum of one director.

– Private Limited Company

A limited liability company with two to 30 shareholders. Requires a minimum of one director. May have restrictions on the transfer of each class of shares as provided for by the Articles.

– Public Limited Company

A limited liability company authorized by the LCE to issue securities to the public. Requires a minimum of three directors.

Source: https://www.dfdl.com/resources/publications/investment-guides/cambodia-2020/

A foreign or local entity may operate its business in Cambodia through a branch office. Although relatively common in the banking community, the government’s policy, historically, was to limit branches to foreign investors that have executed contracts with the government. Such a limitation is not present under the current law. One notable consideration for branches is that the foreign parent company may be liable for the losses and debts of the branch. Branches cannot hold QIPs and do not have separate legal personality from their principal parent company.

Source: https://www.dfdl.com/resources/publications/investment-guides/cambodia-2020/

For some investors, the need to establish a subsidiary or branch of their offshore company, while foreseeable in the longer term, may not immediately be necessary. A more appropriate form may be that of a representative office. Representative offices are primarily used for the sourcing local goods and services and gathering local information for the parent company. They also serve as a vehicle for promoting and marketing the offshore parent’s products and services in Cambodia. They are thus best suited to assisting foreign investors wishing to gain entry to the Cambodian marketplace.

A representative office is not allowed to engage in active trading or provide services in Cambodia. It may not purchase, sell, or conduct any service or activity considered to be within the usual scope of the parent company’s business. It also may not engage in manufacturing, processing, or construction. Permitted activities include the right to employ local workers, and to market products and services at trade fairs. The representative office may negotiate commercial contracts on its parent company’s behalf, but the contract may only be entered into by the parent company.

The representative office is a non-taxable legal entity precisely because it is not permitted to engage in any sort of taxable activity. Doing so would expose the representative office to tax liability. The representative office, however, is required to withhold salary tax on salaries paid to employees and pay patent tax (an annual business operation tax). Representative offices cannot register for QIP status.

Source: https://www.dfdl.com/resources/publications/investment-guides/cambodia-2020/

A “general partnership” is a contract between one or more persons to combine their property, knowledge or activities to carry on business in with a common view to profit. They are jointly and severally liable for the obligations of the partnership to third parties.

A “limited partnership” is a contract of partnership between one or more general partners who are the sole persons authorized to administer and bind the partnership, and one or more limited partners, who are bound to contribute to the capital of the partnership. The general partners are jointly and severally liable for the debts of the partnership to third parties, whereas the limited partners are liable only to the extent of the sum of money or value of the property they agreed to contribute. While this form is common for local and small businesses it is less so for larger investments, as the processes used by the MOC for registering this business form are unclear given the lack of precedent to date.

Source: https://www.dfdl.com/resources/publications/investment-guides/cambodia-2020/

Cambodia places very few restrictions on the level of foreign participation in investments. As a result, a substantial proportion of investors choose to establish 100% foreign-owned limited companies. However, it should be noted that only a Cambodian company or citizen may own land and foreign ownership restrictions apply to certain sectors.

Source: https://www.dfdl.com/resources/publications/investment-guides/cambodia-2020/

Annual Taxes

• Tax on Income (“TOI”)
• Minimum Tax (“MT”)

Monthly Taxes

• Prepayment of Income Tax (“PIT”)
• Withholding Tax (“WHT”)
• Tax on Salary (“TOS”)
• Value Added Tax (“VAT”)

Other Significant Taxes

• Patent Tax (“PT”)
• Specific Tax on Certain Merchandise and Services (“ST”)
• Accommodation Tax (“AT”)
• Tax on Public Lighting (“TPL”)
• Tax on Unused Land (“TUL”)
• Tax on Immovable Property (“TIM”)
• Additional Tax on Dividend Distribution (“ATDD”)

Source: https://www.dfdl.com/resources/publications/investment-guides/cambodia-2020/

Businesses are required to pay PT upon business registration and every year thereafter for each business activity that they carry out.

In previous years the Government fee required to obtain a PT Certificate was approximately USD 285. The revised PT fees are as follows:

1. Small Taxpayer KHR 400,000 / USD 100
2. Medium Taxpayer KHR 1.2 million / USD 300
3. Large Taxpayer KHR 3 million or KHR 5 million* USD 750 or USD 1,250

*If the annual turnover of the Large Taxpayer exceeds KHR 10 billion (USD 2.5 million) then the PT payable will be USD 1,250. If the annual turnover of the Large Taxpayer is less than KHR 10 billion (USD 2.5 million) the PT payable will be USD 750.

The PT must be paid at the place where taxpayers have their specific/real business operation. A taxpayer which has a branch office, warehouse, factory and workshop with the same business objective in the same location (city-province) must only pay one PT fee.

Source: https://www.dfdl.com/resources/publications/investment-guides/cambodia-2020/

The ST is imposed on a number of local and imported products and services. The rates range from 3% to 45%. Goods subject to this ST include soft drinks, alcoholic beverages, cigarettes, and certain services such as entertainment, domestic and international air tickets, and telephone services.

Source: https://www.dfdl.com/resources/publications/investment-guides/cambodia-2020/

Tax penalties are imposed for violations of the LOT and its regulations. The level of the penalty depends upon the nature of the violation, and is determined as follows:

• Where a taxpayer or withholding agent is considered negligent (the amount of deficient tax paid is 10% or less than the amount of taxes due) the penalty is 10% of the unpaid tax;
• Where a taxpayer or withholding agent is considered seriously negligent (the amount of deficient tax is more than 10% of taxes due) or the taxpayer has failed to settle tax liabilities by the due date as stated in a tax notification on late payments issued by the GDT, the penalty will be 25% of the unpaid tax; and
• Where a tax audit conducted by the GDT exposes an underpayment of taxes, the penalty will be 40% of the unpaid tax.

In addition, penalties are imposed for late payment of taxes and late lodgment of returns, together with interest charged at 1.5% per month.

Source: https://www.dfdl.com/resources/publications/investment-guides/cambodia-2020/

Cambodia has signed Agreements for the Avoidance of Double Taxation (“DTAs”) with Singapore, China, Brunei, Thailand, Vietnam, Indonesia and Hong Kong. The DTA with Singapore and Thailand came into force on 1 January 2018 and those with China, Brunei and Vietnam entered into force on 1 January 2019. DTAs are expected to reduce barriers on cross-border investment and trade between the countries, along with the fostering of heightened future economic growth in Cambodia. Of note is the reduction in the standard WHT rates for payments made to non-residents whereby the standard Cambodian WHT rate of 14% with respect to payments of interest, royalties, service fees and dividends are reduced to 10% in most cases for those taxpayers who qualify and obtain approval from the GDT under the DTA.

Source: https://drive.google.com/file/d/1ZsnUB3DiybFaGG2FOmBZNWtVd6pVTF-M/view?usp=sharing

Withholding tax in Cambodia needs to be withheld on payments made by residents (and it seems only to those who fall under the self-declaration regime). The withheld tax constitutes a final tax when withheld in respect of resident and non-residents. The types of payments caught are as follows. WHT on payment to residents Interest: 15% (except payment to a Cambodian-registered bank or financial institution). Royalties: 15%. Rental: 10%. Interest (except local bank and financial institutions): 15%* Interest for fixed deposit: 6%* Interest for saving deposit: 4%* Services: 15% (except payments to a registered taxpayer and supported by a valid VAT invoice). WHT on payment to non-residents Under the Law on Financial Management 2017, which is effective from 1 January 2017 onwards, any resident taxpayer carrying on a business, including a PE of a non-resident person, who pays any Cambodian-source income as defined under Article 33 of the Law on Taxation to a non-resident taxpayer must withhold tax at 14% of the amount paid. WHT does not apply to property or risk reinsurance premiums in Cambodia. According to Article 33 of the Law on Taxation, Cambodian-source income includes: Interest paid by a resident enterprise, resident pass-through, or a governmental institution of Cambodia. Dividends distributed by a resident enterprise. Income from services performed in Cambodia. Compensation for management and technical services paid by a resident person. Income from movable or immovable property, if the property is situated in Cambodia. Royalties from the use, or right to use, intangible property paid by a resident person or paid by a non-resident person through a PE maintained in Cambodia. Gain from the sale of immovable property located in Cambodia or from the transfer of any interest in immovable property situated in Cambodia. Premiums from the insurance or reinsurance of risks in Cambodia. Gain from the sale of movable property that is part of a PE’s business property maintained by a non-resident taxpayer in Cambodia. Income from business activities conducted by a non-resident through a PE in Cambodia. WHT is due when the amount is paid. An expense is considered ‘paid’ when it is recorded in the accounting records. Except WHT on the rental of movable and immovable properties as stated in Article 25 and 26 of the Law on Taxation, small taxpayers are exempted from being the WHT agents for other WHT implications. * The data is from Deloitte tax guide 2020, page 20.

Source: https://taxsummaries.pwc.com/cambodia/corporate/withholding-taxes