In May and June 2024, Cambodia’s General Department of Taxation (GDT) issued two notable tax incentive packages that aim to encourage business growth in the country. The details of these incentives are outlined below. Tax Incentives for Expansion of Qualified Investment Projects The GDT’s May 10, 2024, regulation (Prakas No. 313 MEF. PrK. PD) provides income tax incentives for expansion of qualified investment projects (QIPs), including an income tax exemption for the following types of expansion: Expansion of existing production. Expansion through product line diversification within the same lines. Implementation of new technologies that enhance productivity or protect the environment. Other forms of expansion set out in future sub-decrees. The number of years for the income tax exemption depends on the investment activities of the QIP, in accordance with the business groupings provided in the Sub-Decree on the Implementation of the Investment Law in Cambodia—9 years for group 1, 6 years for group 2, and 3 years for group 3. After receiving approval for the QIP expansion from the Council for the Development of Cambodia (CDC) or one of its Provincial-Municipal Investment Sub-Committees (PMISs), the GDT will certify the income tax exemption period. The exemption begins on the date the enterprise first receives income from the QIP expansion. QIPs seeking this tax exemption need to declare the amount of money that they intend to use for the expansion. Once allowed, the company must use that money for construction materials or new production equipment before the expiration of the tax exemption period. The income tax exemption can be revoked if: The enterprise does not use the capital to expand the QIP by purchasing the construction material and new production equipment as requested for the expansion. The enterprise fails to invest the prescribed amount before the expiration of the tax exemption

Tilleke & Gibbins is pleased to announce the release of Employment Law Basics in Southeast Asia. This publication serves as an indispensable resource for businesses navigating the complex landscape of employment law in Cambodia, Laos, Myanmar, Thailand, and Vietnam. Authored by Tilleke & Gibbins’ regional team of employment law specialists, the guide provides a detailed overview of key employment law topics essential for businesses operating or planning to expand their operations in Southeast Asia. From employment contracts to termination procedures, each topic is examined in depth to ensure businesses are well-equipped to comply with local regulations and protect their interests. Key topics covered in the guide include: Employment contracts Probationary period Minimum wage Social security and statutory payments Working hours Leave and holidays Work rules Termination Foreign employees Data protection Remote work AI and automation Our guide offers multinational corporations establishing a presence in the region and local enterprises alike practical insights and actionable advice tailored to the unique regulatory environments in Cambodia, Laos, Myanmar, Thailand, and Vietnam. To access the full guide, please download the PDF below.

Multilaw has published the latest edition of How to Hire and Fire, a guide to the rules and regulations governing employment relationships in over 90 jurisdictions around the world. Lawyers at Tilleke & Gibbins prepared the Cambodia, Myanmar, Thailand, and Vietnam chapters of the guide, which covers the following main topics: General principles: Forums for adjudicating employment disputes, main sources of employment law, employees working for foreign companies in Cambodia or abroad for domestic companies, and data privacy. Hiring the employee: Legal requirements for employment agreements, types of agreement, secrecy and confidentiality, ownership of inventions and other IP rights, pre-employment considerations, hiring of non-nationals, hiring specified categories of individuals, and outsourcing and sub-contracting. Maintaining the employment relationship: Changes to the contract, changes in business ownership, social security, accidents at work, discipline and grievances, harassment, discrimination, equal pay, compulsory training obligations, offsetting earnings, maternity and disability leave, insurance, absence for military or public service duties, trade unions, employee strikes, and employers’ liability for actions of employees. Firing the employee: Procedures for terminating employment agreements, instant dismissal, employee resignation, termination on notice, age-related termination, force majeure automatic termination, collective dismissals, termination by agreement, directors and senior officers, rules for companies facing financial difficulties, restriction of future activities, whistleblowers, garden leave, severance payments and tax considerations, allowances, and time limits for post-termination claims. General: Specific matters unique or important to each jurisdiction. Multilaw is a global network of carefully selected, independent law firms consisting of over 10,000 commercial lawyers in more than 100 countries, able to provide expert legal advice in complex environments around the globe. The full guide is available for free on the Multilaw website.