The Cambodian Ministry of Economy and Finance made a new rule (called a Prakas) to help small, informal businesses become official, registered businesses. In return, the government gives them big tax breaks and forgives past mistakes.

1. Who Can Join?

Your business must work in one of these areas:

• Buying and selling things (wholesale, retail, repair shops)
• Hotels and restaurants
• Handmade crafts
• Farming groups

2. Is Your Business “Small” or “Medium”?

The government sorts businesses by how much money they make each year, how much they own, or how many workers they have.

Small Business — you count as small if you have ANY ONE of these:

• Earn 250 million to 1 billion Riels a year (or up to 1.6 billion for craft businesses)
• Have 5 to 49 workers
• Earned 60 million+ Riels in just 3 months
• Take part in government bidding

Medium Business — you count as medium if you have ANY ONE of these:

• Earn more than 1 billion up to 4-8 billion Riels a year (amount depends on your business type)
• Have 50 to 199 workers
• Are officially registered as a company

You only need to match one condition, not all of them.

3. What Do You Get for Registering?

You must sign up on your own (not because the government forced you) using the CamDX online system or by going to the tax office. If you do this between 2023–2028 (small businesses) or 2024–2025 (medium businesses), you get:

• Forgiveness for the past: All old unpaid taxes, fines, and penalties are wiped away — completely.
• Free registration: No fees to register, update info, or print your certificate.
• No patent tax: Skip this tax when you register, plus 2 extra years free if you register in 2024 or 2025.
• No income tax for 2 years: You don’t pay income tax, tax prepayments, or minimum tax for the year you register plus the next year.

4. What You Still Must Do

Getting these benefits doesn’t mean you can ignore the rules completely. You must:

• Tell the tax office within 15 days if you change your address, business name, owners, managers, bank account, or contact info.
• Keep records and file tax paperwork every year, even though you don’t have to pay income tax during the free period.
• Still pay other taxes that aren’t part of this deal, like VAT (sales tax) or salary tax for your workers.

Cam Accounting & Tax Service Co., Ltd., a member firm of Kreston Global, holding a GDT tax agent license, Accounting, Auditing, and liquidator licenses from ACAR, and accredited by the National Bank of Cambodia (NBC) and Trust Regulator (TR).

For more information, please contact our Accounting, Tax and Audit Expert
Ms. Haing Sivtieng, MIPA, MBA
Partner
Chinese Line: +855 89 777 589
English line: +855 93 33 5158

Mr. Keat Heng, ACCA, CPA, FCCA
Partner
Mobile: +855 12 753 257
E-mail : info@krestoncambodia.com
Website: www.krestoncambodia.com

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The guidelines for the implementation of the sub-decree on tax incentives for the development of the informal economy

Read PDF File “KH” 
Read PDF File “Eng”