Economy: Royal Government extends tax exemption for tourism businesses for another year

In order to continue alleviating the burden on tourism operators and to support the revival of tourism in Siem Reap, Cambodian Prime Minister Hun Manet has announced that the tax exemption for tourism businesses will be extended for another year.

On Thursday, the Prime Minister made an announcement on the first anniversary of the Royal Government of the 7th Legislature of the National Assembly of Cambodia.

Samdech Thipadei announced that all types of monthly taxes will be exempted for the tourism sector in Siem Reap, with the exception of value-added tax and 2023 income tax. Also, the scheduled audits of tourism businesses will be postponed until June 2024.

Prime Minister Hun Manet stated:

‘To further alleviate the burden on operators and to facilitate the recovery of tourism in Siem Reap, I have decided to extend the tax exemption for one more year, until the end of June 2025.’

Furthermore, the Royal Government has earmarked USD 50 million through SME banks to provide loans, particularly to tour operators in Siem Reap. The PM added that the working group is currently studying and evaluating tourism activities and services in order to prioritise which should receive this special loan from the Royal Government.

On this occasion, Samdech Thipadei also highlighted the need for further action beyond tax regulations to promote tourism in Siem Reap, particularly in terms of identifying key players and addressing important tasks. Tour guides, who are instrumental in introducing visitors to the history and significance of temples and national heritage, are also a key focus. The Prime Minister highlighted that the Royal Government had previously waived transitional fines for expired tour guide cards until March 2024. To provide further support to guides, this waiver has been extended until the end of 2024. While already paid fines are non-refundable, this extension will provide significant relief to them.