Cambodia strengthens investment climate with new tax law approval
Cambodia has strengthened its investment climate with the approval of a new tax law. The law, which was passed by the National Assembly on February 22, 2023, aims to make Cambodia a more attractive destination for foreign investment.
The new law includes a number of provisions that are designed to make it easier and cheaper for businesses to operate in Cambodia. For example, the law reduces the corporate tax rate from 20% to 17%, and it eliminates the dividend withholding tax. The law also simplifies the tax registration process and makes it easier for businesses to access tax information.
The approval of the new tax law is a positive development for Cambodia’s economy. The law is expected to attract more foreign investment, which will help to create jobs and boost economic growth.
In addition to the tax law, Cambodia has also taken other steps to improve its investment climate. For example, the government has established a number of special economic zones (SEZs) that offer businesses a number of incentives, such as tax breaks and duty-free imports. The government has also made it easier for businesses to obtain visas and work permits.
As a result of these efforts, Cambodia has become a more attractive destination for foreign investment. In 2022, the country attracted a record $3.8 billion in foreign direct investment (FDI). This was an increase of 19% from the previous year.
The government of Cambodia is committed to attracting more foreign investment. The new tax law is just one of the steps that the government is taking to improve the investment climate. With its low taxes, skilled workforce, and strategic location, Cambodia is well-positioned to attract even more FDI in the years to come.