Sok Xing & Hwang Provides Insights on 2024 Compliance Obligations for Commercial Enterprises

At the start of this New Year, we take the opportunity to remind our clients of the legal and regulatory compliance obligations for all commercial enterprises in Cambodia.

Certificate of Compliance from the Council for the Development of Cambodia (CDC)

Enterprises under the scheme of Qualified Investment Project (QIP) shall submit six-month and annual reports to apply for a Certificate of Compliance to CDC. QIP enterprises shall submit their six-month and annual reports to the CDC within 20 (twenty) days following the closing date for submitting tax returns.

A QIP-entitled enterprise risks losing its investment incentives if it fails to obtain this Certificate of Compliance.

Submission of Annual Financial Statements to the Accounting and Auditing Regulator (ACAR)  

Enterprises with Audited Financial Statements: Enterprises that are required to obtain externally audited financial statements shall electronically file such financial statements with ACAR no later than 06 (six) months and 20 (twenty) days after the close of their accounting period by using the ACAR e-filing system.

Enterprises with Unaudited Financial Statements: Enterprises that are exempt from having their financial statements externally audited shall file their unaudited financial statements with ACAR no later than 03 (three) months and 20 (twenty) days after the close of the accounting period by using the ACAR e-filing system.

National Domain Names

Commercial enterprises with level 2 national domain names ending in "" are required to pay the Telecommunication Regulator of Cambodia (“TRC”) an annual renewable fee, which is determined by the number of characters and falls within the range of KHR120,000 (approx. USD30) to KHR320,000 (approx. USD80) for 2024.

In the event an enterprise does not yet have a level 2 national domain name ending in "", it is required to apply for one from the TRC.

Annual Declaration of Commercial Enterprise (ADCE) at the Ministry of Commerce (MOC)

Commercial enterprises are required to submit an ADCE to the MOC using its online system within 03 (three) months of the enterprise's re-registration. The applicable fee for filing the ADCE is KHR80,000 (approximately USD20).

Late submissions will be subject to a fine of KHR1,000,000 (approximately USD250) by the MOC.

Corporate Secretarial Services

The Amendments to the Law on Commercial Enterprises provide that enterprises incorporated in Cambodia are required to appoint a corporate secretary who permanently resides in Cambodia.

Filing of Monthly Tax Declaration

Commercial enterprises are required to file their monthly tax declarations and pay withholding tax, salary and fringe benefit tax by the 20th day of the following month.

Tax on Income (TOI) Return

Enterprises must complete the e-filing for the 2023 annual TOI declaration and pay the annual TOI with the General Department of Taxation (GDT) by 31 March 2024.

Registered self-assessment taxpayer enterprises that have local branches shall submit a consolidated 2023 TOI declaration and include the financial information for each of the local branches to the GDT. Self-assessment taxpayers engaging in both QIP and non-QIP activities shall also be required to submit their annual 2023 TOI return to the GDT. 

Transfer Pricing Report

The contemporary Cambodian transfer pricing regulation imposes two annual requirements on self-assessment taxpayers who engaged in related-party transactions in the 2023 tax year:

  • Completion of a transfer pricing declaration that will be submitted to the GDT as an annex to the 2022 annual TOI return; and
  • Completing a 2023 local transfer pricing filing which is acknowledged in the 2023 TOI return.

Patent Tax 

By 31 March 2024, commercial enterprises registered with the GDT are required to pay their 2024 Patent Tax for each business activity they conduct. The particular classification of the enterprises under the self-assessment regime of taxation will determine the amount of Patent Tax due in 2024.

The following are the 2024 Patent Tax fees:

  • KHR400,000 (approximately USD100) for Small Tax Payer;
  • KHR1,200,000 (approximately USD300) for Medium Taxpayer; and
  • KHR3,000,000 or KHR5,000,000 (approximately USD750 or USD1,250) for Large Taxpayer.

The Patent Tax will be USD1,250 if the Large Taxpayer’s yearly revenue exceeds KHR10 billion (approximately USD2.5 million). The Patent Tax will be USD750 if the Large Taxpayer’s annual revenue is less than KHR10 billion (approximately USD2.5 million).  

Labor Compliances

Foreign Employee Quota to the Ministry of Labor and Vocational Training (MLVT): Commercial enterprises that employ foreign employees shall submit an application through the MLVT online system for foreign employee quota. The application period for the foreign employee quota, which allows employers to hire foreign employees for the following year, is typically open from early September to the end of November of the year prior to employment.

2024 Foreign Employee Work Permits: Foreign employees are legally required to possess a valid work permit to work in Cambodia. A foreign work permit is only valid for 01 (one) year, ending 31 December of that year. Enterprises employing foreign employees in 2024 shall submit an application to obtain or extend foreign work permits by 31 March 2024. 

Annual Report on the Number of Qualified Disabled Persons: For enterprises with 100 (one hundred) or more employees, 1% of their total workforce must be qualified disabled persons and submit an annual report on number of qualified disabled persons to the MLVT and Ministry in charge of Social Affairs by the end of January 2024.

Annual Training of Apprentices: Enterprises with more than 60 (sixty) employees are required to have apprentices in the proportion of one-tenth of the number of total employees and to conduct annual training of apprentice. The training shall be conducted every year, which is from 1st January to 31st October of each calendar year.

National Social Security Fund (“NSSF”): By the 15th of every month, all registered enterprises are required to make contribution payments to the NSSF for following:

  • Occupational risk;
  • Health care; and
  • Pension.

Online Self-Declared Labor Inspection: Commercial enterprises are required to make a self-declared labor inspection online via the website of MLVT at The declaration must be carried out two (2) times a year, the first time before the end of June 2024, and the second time before the end of December 2024.