This list is a must to do for foreigners and registered companies in Cambodia to remain compliance. Please feel free to book an appointment for a free 30-minute consultancy for any service we offer. We can arrange our consultancy either by visiting our office or Skype call.
A Must To Do Between January to March and Annually
ONE: Foreigner Work Permit Renewal
According to the Cambodian Labor Law, Articles 261, 264, 265 and Prakas No. 196, dated August 20, 2014; all foreign nationals working and/or holding E-Business (multiple entries) Visa in the Kingdom of Cambodia are required to hold a work permit. For those holding a work permit from 2019, the time to renew your work permit is January 1 to March 31, 2020. Late work permit renewal is subject to a penalty of $900 USD. Foreign nationals who had never hold a work permit before, you need to apply for it for the first time once you start holding E-Business(multiple entree) visa.
TWO: Annual Tax On Income (TOI) Return
All registered businesses in the Kingdom need to file annual TOI returns between January 1 and March 31 2020 for the fiscal year 2019. Late returns are subject to obstacle penalties according to the following formula ($500 obstacle penalty +10% total penalties values + 1.5% monthly interest rate).
THREE: Patent Renewal
All registered businesses in the Kingdom need to renew their patent certificates annually between January 1 and March 31 of each year. Late renewals are subject to obstacle penalties according to the following formula ($500 obstacle penalty +10% total penalties values + 1.5% monthly interest rate).
A Must To Do on a Monthly Basis
FOUR: Monthly Tax Return
All registered businesses in the Kingdom need to return taxes monthly between the 1st and the 20th of the month for corporate taxes from the previous month. Late returns are subject to obstacle penalties according to the following formula ($500 obstacle penalty +10% total penalties values + 1.5% monthly interest rate).
In order to return taxes more properly, medium and large taxpayers need to practice standard accounting system which means accounting software and proper bookkeeping is another a must to do. Small taxpayers should at least practice simplified accounting system, e.g. Excel Worksheet.
Other a Must To Do
FIVE: Enterprise Registration
All registered businesses in the Kingdom need to apply for an enterprise registration with the Ministry of Labor and Vocational Training once the entity starts hiring the first employee.
SIX: Quota/Employee Registration
All registered businesses in the Kingdom need to register their foreign employee(s) with the Ministry of Labor and Vocational Training in advance between September 1 and November 31, 2019 if the company plans to employ them in 2020.
SEVEN: National Social Security Fund Registration
All registered businesses in the Kingdom need to apply for a National Social Security Fund for their employee(s) once employees have been hired.
EIGHT: Annual Company Declaration
All registered businesses in the Kingdom need to declare a company update with the Ministry of Commerce every twelve months referred to the incorporated date stated on the company registration certificate. Late updates are subject to obstacle penalties for $500 per year if the business owner fails to do it.
NINE: Change of shares, decrease/increase of shares, change of Shareholder, Business Activity, Name, Address, and any part of the Articles of Incorporation
Business owners must first submit requests to the Ministry of Commerce. After the requests have been approved, the business owner needs to update the General Department of Taxation within 15 days concerning the changes.
TEN: Business Closure
In order to properly close a business in the Kingdom of Cambodia, business owners need to first submit the business closure request to the General Department of Taxation and/or Tax Branch where monthly tax returns are submitted, and last is the Ministry of Commerce. If owners fail to complete these steps, they remain corporate taxpayers and are subject to penalties according to the taxation laws and practices.
If you think this article is helpful, please kindly like and share. We wish you all the best for doing business in Cambodia. For a quick support, please find us here.
ONE: Foreigner Work Permit Renewal
According to the Cambodian Labor Law, Articles 261, 264, 265 and Prakas No. 196, dated August 20, 2014; all foreign nationals working and/or holding E-Business (multiple entries) Visa in the Kingdom of Cambodia are required to hold a work permit. For those holding a work permit from 2019, the time to renew your work permit is January 1 to March 31, 2020. Late work permit renewal is subject to a penalty of $900 USD. Foreign nationals who had never hold a work permit before, you need to apply for it for the first time once you start holding E-Business(multiple entree) visa.
TWO: Annual Tax On Income (TOI) Return
All registered businesses in the Kingdom need to file annual TOI returns between January 1 and March 31 2020 for the fiscal year 2019. Late returns are subject to obstacle penalties according to the following formula ($500 obstacle penalty +10% total penalties values + 1.5% monthly interest rate).
THREE: Patent Renewal
All registered businesses in the Kingdom need to renew their patent certificates annually between January 1 and March 31 of each year. Late renewals are subject to obstacle penalties according to the following formula ($500 obstacle penalty +10% total penalties values + 1.5% monthly interest rate).
A Must To Do on a Monthly Basis
FOUR: Monthly Tax Return
All registered businesses in the Kingdom need to return taxes monthly between the 1st and the 20th of the month for corporate taxes from the previous month. Late returns are subject to obstacle penalties according to the following formula ($500 obstacle penalty +10% total penalties values + 1.5% monthly interest rate).
In order to return taxes more properly, medium and large taxpayers need to practice standard accounting system which means accounting software and proper bookkeeping is another a must to do. Small taxpayers should at least practice simplified accounting system, e.g. Excel Worksheet.
Other a Must To Do
FIVE: Enterprise Registration
All registered businesses in the Kingdom need to apply for an enterprise registration with the Ministry of Labor and Vocational Training once the entity starts hiring the first employee.
SIX: Quota/Employee Registration
All registered businesses in the Kingdom need to register their foreign employee(s) with the Ministry of Labor and Vocational Training in advance between September 1 and November 31, 2019 if the company plans to employ them in 2020.
SEVEN: National Social Security Fund Registration
All registered businesses in the Kingdom need to apply for a National Social Security Fund for their employee(s) once employees have been hired.
EIGHT: Annual Company Declaration
All registered businesses in the Kingdom need to declare a company update with the Ministry of Commerce every twelve months referred to the incorporated date stated on the company registration certificate. Late updates are subject to obstacle penalties for $500 per year if the business owner fails to do it.
NINE: Change of shares, decrease/increase of shares, change of Shareholder, Business Activity, Name, Address, and any part of the Articles of Incorporation
Business owners must first submit requests to the Ministry of Commerce. After the requests have been approved, the business owner needs to update the General Department of Taxation within 15 days concerning the changes.
TEN: Business Closure
In order to properly close a business in the Kingdom of Cambodia, business owners need to first submit the business closure request to the General Department of Taxation and/or Tax Branch where monthly tax returns are submitted, and last is the Ministry of Commerce. If owners fail to complete these steps, they remain corporate taxpayers and are subject to penalties according to the taxation laws and practices.
If you think this article is helpful, please kindly like and share. We wish you all the best for doing business in Cambodia. For a quick support, please find us here.
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