PHNOM PENH: The Royal Government of Cambodia has announced that it will extend the exemption of all types of monthly tax, such as value added tax on hotels, guesthouses and travel agencies, operating in Phnom Penh, Siem Reap and Sihanoukville, for an additional three months from January to March 2023. The government has, however, stressed that this tax exemption only applies for tourism companies registered with the General Department of Taxation.

According to a press release issued by the Royal Government on Monday, 30 January 2023, despite this extended three-month grace period, tourism businesses are still required to file tax returns and use the online system for VAT management every month.

At the same time, the Royal Government will continue to provide mediation by freezing debt figures from 2019 and excluding penalties for 2023 tourism.

The Royal Government has advised businesses in the tourism sector to develop skills development programs for their employees and to request financial support from the Skills Development Fund (SDF) project as needed.

This decision to extend the tax exemption period was made with consideration of all sectors of the economy now being reopened in the country and currently experiencing a recovery period, especially the tourism sector. Although the number of tourists in Cambodia has increased, the growth of international tourists is still slow due to the uncertain global economic situation. Therefore, this continued exemption of tax will help support and restore business in tourism.