UPDATE

UNOFFICIAL TRANSLATION:

Additional measures for Private industry, workers affected by Covid 19 and measure to recover and stimulate economic growth after crisis

(4th round, 26th May 2020)

 

1.Measures for businesses and workers

      1.1 Additional measure for Tourism sector

  • Continued monthly Tax exemption for additional two months – June to July 2020 applicable for registered hotel, guesthouse, restaurants, and tour agencies operated in Phnom Penh, Siem Reap, Prehsihanouk, Kep, Kampot, Bavet city, and Poipet city.
  • Continued exemption on National Social Security Fund payments during business suspension
  • Exemption on Tourism License renewal fee for 2021

      1.2. Measures for Aviation sector

  • ​Exemption on Minimum tax for additional two months – June and July 2020 for airlines registered in Cambodia.

 

2.Measure on Business Financing

      2.1 Modify ARDB 50 millions Financing program by expanding the scope and amend the term and condition through lowering interest rate, extending the terms, providing flexibility in registration for SMEs to submit the loan application in prior to registration, whereas refinancing is prohibited.

  • Modify the criteria that requires “small and medium-sized enterprise to create new job opportunities for 5 employees at least” to “Encouraging loan-accessed SMEs to create new job opportunities.”
  • Expand the scope of fund to SMEs Cluster by encouraging relevant SMEs to use technical services of “Khmer Entrepreneur” to access the funds.

      2.2 Modify Co-Financing 100 Millions scheme of SME banks and Financial Institutions by expanding the scope and amend the terms and conditions by enabling loan restructuring, providing flexibility in payment period option, whereas refinancing is prohibited.

  • Modifying terms from 4 to 7 years based on FIs evaluation
  • Expanding scope of funding to cover enterprises in medical equipment manufacturing and pharmaceutical sector in addition to prioritized sectors stated in Sub Decree No. 124.
  • Modify the criteria that requires “small and medium-sized enterprise to create new job opportunities for 5 employees at least” to “Encouraging loan-accessed SMEs to create new job opportunities.”

3.Increasing more financing program for post-COVID-19 economic recovery and growth

       3.1 Measures on increasing and facilitating cash flow

  • Ministry of Economics and Finance and National Bank of Cambodia are working on reliefs and regulate certain conditions to increase and facilitate cash flow in banking system.

      3.2 Lowering Withholding Tax for local loan and loans acquired from abroad for MFIs:

Old loan

  • Lowering WHT to 5% for local loan and overseas loans for microfinance institutions (MFIs) for the year 2020 (applicable to loan acquired from both Double Tax Agreement and Non Double Tax Agreement country)
  • Lowering WHT to 10% for local loan and overseas loans for microfinance institutions (MFIs) for the year 2021 (applicable to loan acquired from both DTA and Non DTA countries)
  • Adjusting WTH for local loan and overseas loans for microfinance institutions (MFIs) to normal rate for the year 2022

New Loan

  • Lowering WHT to 10% for local loan and overseas loans for microfinance institutions (MFIs) for the year 2020 (applicable to loan acquired from both DTA and Non DTA countries)
  • Adjusting WTH for local loan and overseas loans for microfinance institutions (MFIs) to normal rate for the year 2021

      3.3 Working Capital Financing

  • MoEF to create 200 Million USD “Credit Guarantee Fund” scheme to guarantee loan from bank and MFIs

       3.4 Financing Facility Preparation

  • MoEF to prepare an additional financing fund amounts 300 Million USD to support and stimulate the growth of industries during and after crisis.

 

4.Measures for Social fund

    • Government to expands the scope and fund for “ Cash for work” program in 2020 up to 100 Million USD for unemployed labor forces and to sustain people’s living, as well as to make a socioeconomic achievement through implementing physical infrastructure projects aiming to promote agriculture and economic sector as well.

5.Implementation of IT business Registration Platform

    • Government is to implement IT business registration Platform in earlier June 2020 to facilitate and encourage business registration especially to coordinate those planning to register to obtain loan from Financing scheme from Government.