Cambodia’s Ministry of Economy and Finance suspends monthly prepayment of tax on income (PToI) for qualified textile and garment enterprises until the end of 2028. Specifically, it targets Qualified Investment Projects (QIPs) post-tax exemption whose production—for export—covers textiles, garments, footwear, bags, hats, labels, gloves, socks, towels, pillowcases, blanket covers, mattress covers, and tablecloths. This extends prior suspensions (e.g., to 2025 via earlier Prakas), aiming to bolster sector sustainability amid economic pressures.
Objectives
The regulation seeks to ensure business continuity, boost exports, preserve jobs, and benefit Cambodian workers and citizens linked to the industry. It responds to practical necessities in the textile-garment sector, a key economic pillar facing global challenges like US Tariff, GSP and EBA.
Duration and Implementation
Suspension runs from issuance through December 31, 2028. Overrides conflicting prior provisions; relevant officials implement immediately upon signature.
2026 Preparation and Beyond
Actually, taxpayers should apply exclusively to post-exemption QIP enterprises in specified export-oriented sub-sectors. Enterprises must maintain compliant accounting per tax, accounting, and auditing laws; file/pay other taxes on time; and submit annual independent audit reports to tax authorities. Non-compliance triggers revocation of suspension and penalties under tax laws.
We will continue to closely monitor developments and provide the latest information promptly from the General Department of Taxation.
Tax services to be implemented by licensed tax agents in Cambodia are provided by Cam Accounting & Tax Service Co., Ltd., a member firm of Kreston Global, holding GDT tax agent license, Accounting, Auditing and liquidator licenses from ACAR, and accredited by National Bank of Cambodia (NBC) and Trust Regulator (TR).
Our Audit, Tax & Accounting Expert
Ms. Haing Sivtieng, MIPA, MBA
Tax & Accounting Partner
Mobile: +855 89 777 589
Mr. Keat Heng, ACCA, CPA, FCCA
Audit Partner
Mobile : +855 12 753 257
E-mail : info@krestoncambodia.com
Website : www.krestoncambodia.com
