ILAW CAMBODIA LAW OFFICE

[20 May 2025] — ILAWASIA is pleased to announce the appointment of Tanadee Pantumkomon as the firm’s new Partner in ILAWASIA’s Cambodia Office, ILAW Cambodia Law Office. This strategic addition further enhances our leadership team and reinforces our commitment to delivering exceptional legal services across the region and the global. In addition to his new role, Tanadee will serve in an additional leadership capacity at the Cambodia office, where he will oversee strategic initiatives, support cross-border collaboration, and contribute to the firm’s long-term development in Cambodia. With a distinguished background in international legal practice and extensive experiences more than a decade, Tanadee brings valuable expertise and insight to the firm. His appointment reflects ILAW Cambodia Law Office’s commitment to nurturing leadership that bridges legal systems and cultures across Southeast Asia. “Tanadee’s expanded role is a reflection of his outstanding contributions and our confidence in his ability to lead,” said Somphob Rodboon, Managing Partner of ILAW Cambodia Law Office. “His experience and vision will be instrumental in driving our growth and delivering exceptional service to our local and international clients.” Tanadee has played a pivotal role in advancing the firm’s regional initiatives, particularly in corporate advisory, regulatory compliance, M&A, cross-border investment, and energy, power and major projects. In his new capacity, he will focus on enhancing client engagement, mentoring legal professionals, and expanding the firm’s presence in Cambodia. “I am honored to take on this expanded role and contribute to the continued success of ILAW Cambodia Law Office,” said Tanadee Pantumkomon. “I look forward to working with our Cambodian team to support our clients and strengthen our position in the country to the region, and to the global.” This appointment underscores ILAW Cambodia’s ongoing commitment to legal excellence, innovation, and leadership across the ASEAN region.   About ILAW Cambodia Law Office ILAW Cambodia Law Office ("The Firm") was established in March 2023 and registered with the Bar Association of the Kingdom of Cambodia under registration number LO 016/23. The firm is located in Phnom Penh and was founded by Somphob Rodboon and Vicheka Lay. The firm is a branch office of its parent company, ILAWASIA CO., LTD., which has been based in Bangkok, Thailand for over a decade. The firm is in well placed to provide professional advisory services primarily in domestic and international disputes which include civil cases, criminal cases, labor disputes, international trade, debt collection service, legal due diligence, and any legal issues appropriate for any business transactions. Our partner and local attorneys were recently recognized and listed in the Asia-Pacific Legal 500 series. Furthermore, from 2021 to the present, ILAW Cambodia Law Office has been ranked as a "Firms in the Spotlight" in the Legal 500.  

Beginning from 1st March 2025, Cambodia launches the Accessing Office of WIPO’s digital access service. This integration will facilitate applicants in providing priority documents and all other IP-related documents between the participating IP offices. Definition: Accessing office is defined as an office of second filing – allows the applicant to request that a priority document be retrieved through WIPO DAS rather than filing a certified copy.[1] WIPO DAS stands for WIPO Digital Access Service, which is an electronic system allowing priority documents and similar documents to be securely exchanged between participating IP offices. The system enables applicants and offices to meet the requirements of the Paris Convention for Certification in an Electronic Environment. KEY TAKEAWAYS Some of the benefits of using WIPO DAS include reducing the need to prepare, check or scan certified documents, removing the need to deal with different transmission and document formats, and removing the need to establish secure connections to multiple offices. As the services are hosted and administered by WIPO, it also ensures documents being exchanged via secured channels and automating the exchange of documents with other participating offices. Applicants in Cambodia could now obtain new services at a low cost for filing applications in other countries. Digital Access Service (DAS) provides a secured, trusted mechanism which allows offices both to transmit and to access unpublished documents with confidence that the transmission has been permitted by the applicants or other authorized persons. CONCLUSION The Launch Accessing Office of WIPO is a significant step underscoring Cambodia’s growth in IP services. The Accessing Office is intended for use with documents related to patents, utility models, industrial designs and trademarks. As a regional leader in IP legal services, ILAW Cambodia Law Office is well-positioned to support businesses in navigating Cambodia’s evolving IP framework. With our expertise in intellectual property law and strong presence in Thailand, Laos, and Myanmar, we have been assisting clients in registering, protecting and enforcing their IP rights in compliance with international standards. Our team is dedicated to ensuring that businesses can fully leverage the opportunities, presented by WIPO’s Accessing Office while securing their innovations in the global market. Author: Vicheka Lay, Partner; and Makara Um, Associate They can be reach at [email protected] [1] https://www.wipo.int/en/web/das/participating-offices/search.

Introduction Following the Royal Government’s decision in the Special Statement on “One Year Achievement of the 7th Legislature” on August 22, 2024,and the directive of Samdech Thipadei Prime Minister of Cambodia on September 26, 2024, regarding Letter No. 10571 MEF dated September 24, 2024, from the Ministry of Economy and Finance, aimed at reducing the tax burden on housing developers and immovable property owners, the Ministry of Economy and Finance announces the continuation of Notification No. 001 (issued on January 4, 2024) and additional tax incentives for the real estate sector, as outlined below. Key provisions The 2025 tax incentives for the real estate sector include exemptions on (A) Tax on Stamp Duty of Transferring Ownership or Possession of Immovable Property, (B) Tax on Capital Gain, (C) Tax on Immovable Property, and (D) Tax on Unused Land, as detailed in following: A. Tax on Stamp duty for Transferring Ownership or Possession of Immovable Property. (The tax rate is 4%[1]) Tax on stamp duty is exempt for transferring ownership or possession of all types of Borey housing valued at USD 70,000 or less until the end of 2025. For all type of Borey housing valued over USD 70,000, the stamp duty tax is calculated by subtracting USD 70,000 from the base value. This also applies to houses purchased in development projects and Borey housing that have a valid real estate business license and are properly registered, until the end of 2025. All ownership or possession transfers with the above exemptions and tax concessions must comply with these conditions: Acquisition of ownership or possession of immovable property with a value of less than or equal to or more than USD 70,000 at the actual market value stated in the contract of sale-purchase from February 25, 2020, to the end of 2025 and to declare stamp duty during this period; Acquisition of ownership or possession of immovable property (all types of housing) from a housing developer registered with the Ministry of Economy and Finance (Now as Real Estate Business and Pawnshop Regulator of Non-Bank Financial Services Authority) or Provincial Department of Economy and Finance; and All housing developers must make a proper sale-purchase contract based on the actual market price. If necessary, the General Department of Taxation under the Ministry of Economy and Finance may review housing developers who have taken the opportunity to reduce the sale and purchase price from the actual market, affecting tax revenue. The taxpayer must enclose the actual sale-purchase contract between the housing developer and the buyer (as original documents) in addition to the application for stamp duty on the transfer of ownership or possession of immovable property.  B. Tax on Capital Gain. (The tax rate is 20%[2]) The tax on capital gain of immovable property for individuals is postponed until the end of 2025. Tax on the other five asset types—leases, investment assets, business reputation, intellectual property, and foreign currency—will commence in 2025. C. Tax on Immovable Property (The annual tax rate is 1%[3]) Tax on immovable property, including administrative penalties (additional tax and interest), is exempt for immovable property or any part of immovable property classified as agricultural land, where crops are being cultivated, or constructions directly and permanently support agricultural activities. This applies to land in the capitals and provincial cities, if the land documents confirm it as agricultural, without needing a permit letter or certificate from the competent authority. However, if any part of the land is used for construction houses, buildings, or other structures unrelated to agricultural activities, that portion will not qualify for the tax exemption. Immovable property with a title deed as a residential land in the capital or provincial cities used for cultivation qualifies for immovable property tax exemption, but it requires a permit letter or certificate of agricultural land use from the local authority. Immovable property that was previously registered and declared but has an incorrect tax basis is exempt from re-taxation and administrative penalties (additional tax and interest) from the year of tax implementation until 2024. From 2025 onward, current laws and regulations will apply. Immovable property (with or without a title deed) not previously registered and declared for immovable property tax can still be registered and pay taxed starting from the year of possessed or last use. For immovable property previously registered but with gaps in tax declarations, administrative penalties (additional tax and interest) are waived until the end of June 2025. D. Tax on Unused Land (The annual tax rate is 2%[4]) Tax on unused land is suspended until the end of 2024, so owners, possessors, or beneficiaries are not required to declare the tax on unused land during this time. In 2025, the Ministry of Economy and Finance will introduce a new unused land tax policy with significant changes as follows: Land classified as unused refers to land outside taxable immovable property areas; Deduction Allowance: Each plot of land will have a 5-hectare tax-free allowance; and Land over 5 hectares can be exempt from taxes if it meets any of the following conditions: actively cultivated agricultural land, used for registered economic activities, leased land, government-owned land, state-leased land for economic use, land in Special Economic Zones (SEZs), or land registered for educational purposes. Conclusion To ease the burden on housing developers and property owners, the Ministry of Economy and Finance has introduced tax incentives, including exemptions on the 4% Stamp Duty Tax for Borey housing valued at $70,000 or less until 2025, postponed 20% Capital Gains Tax for individuals until 2025, and 0.1% immovable property tax exemptions for agricultural land actively used for cultivation or related structures, with penalties for incorrect tax bases waived until 2024 and gaps in declarations forgiven until June 2025. Additionally, the 2% Unused Land Tax is suspended until 2024, with a 2025 policy offering a 5-hectare tax-free allowance and exemptions for specific uses, such as agriculture, economic activities, and education. These measures promote real estate growth while ensuring compliance, excluding retroactive application to taxes already paid. If you are looking for reliable tax advice in Cambodia, ILAW CAMBODIA offers expert legal guidance and comprehensive regulatory support to ensure your business stays fully compliant while efficiently managing tax risks. With our deep knowledge of Cambodia’s tax laws and regulations, we help you navigate complexities with confidence. Let us be your trusted partner in turning challenges into opportunities and driving the success of your business in Cambodia. Author: Tanadee Pantumkomon and Hort Lypheng Footnotes [1] Article 158 Point 1 of the Law on Taxation 2023. [2] Article 168 of the Law on Taxation 2023. [3] Article 150 of the Law on Taxation 2023. [4] Article 176 of the Law on Taxation 2023.

Overview: The Cambodian Labor Law, enacted on March 13, 1997, and amended in 2007, 2018, and 2021,requires foreign workers to obtain a work permit and employment card from the Ministry of Labour and Vocational Training (MLVT). On August 20, 2014, MLVT issued Prakas No. 196 on foreign labor employment, followed by Notification No. 022/24 ក.ប/ស.ជ.ណ.ម.ហ, on August 12, 2024, detailing the procedures for employing foreign workers. This notification reminds companies and foreign individuals to comply with labor regulations in Cambodia. Key Provisions: 1.The Procedure for Enterprise Establishment: Firstly, the enterprise shall apply for a letter permit of employment for foreigner labour from the Ministry of Labour and Vocational Training, not more than 10% of the total number of Cambodian workers. Secondly, registration of employment contract. Lastly, apply for a foreigner work permit and foreigner employment card. 2. The Procedure for Foreigners: Firstly, the foreigner shall request the owner or director of the enterprise to present a letter permit of employment for foreigner labour issued by the Ministry of Labour and Vocational Training Secondly, the foreigner shall sign an employment contract with the owner or director of the enterprise establishment. Lastly, apply for a foreigner work permit and foreigner employment card. 3. Documents require Submit the application on www.fwcms.mlvt.gov.kh with a passport, recent patent tax certificate, health checkup certificate, and a 4x6 cm photo. 4. Penalty Failure to apply for a work permit for the year 2025 within the deadline shall result in factories and enterprises being subject to a penalty of KHR 12,600,000 (about USD3,150) per person, in accordance with the No.106 in Annex 1of PraKas of Inter-Ministerial No. 498 dated 31 July 2023 on the Monetary Fine for those who Violate the Labour Law. Conclusion: In conclusion, the Cambodian Labor Law mandates that foreign workers obtain a work permit and employment card from the Ministry of Labour and Vocational Training (MLVT). The law outlines clear procedures for both employers and foreign workers, including documentation requirements and penalties for non-compliance, which may reach KHR 12,600,000 (approximately USD 3,150) per worker in 2025. Once a foreigner obtains a work permit and employment card, a foreigner can apply for a work visa either at a Cambodian embassy abroad, online via www.evisa.gov.kh, or at Cambodia’s international borders. These regulations ensure adherence to labour standards and facilitate the integration of foreign labour in Cambodia.   Authors: Vicheka Lay and Hort Lypheng

In Brief On 5 September 2024, the Ministry of Land Management, Urban Planning, and Construction (MLMUPC) officially launched its new suite of digital public services,including Vente Definitive, Donation Definitive, Hypothec Services, and Mortgage Services. This development marks a significant milestone in MLMUPC’s ongoing digital transformation, aligning with the Royal Government's Pentagon Strategy for Economic Development and Digitalization. The initiative is designed to enhance the efficiency of public service delivery, facilitating quicker and more accessible land registration processes for the public. It also reflects the government's commitment to fostering a satisfactory and harmonious environment in line with current socioeconomic and cultural development goals. In addition, MLMUPC will pilot these digital services in Phnom Penh through its dedicated website: https://cadastral.mlmupc.gov.kh/login, further advancing its mission to streamline public access to land management services. Procedure The procedural flow of services is as below: Step 1: Click on MLMUPC's Links: https://cadastral.mlmupc.gov.kh/login Step 2: Applicant shall create account within the requirements. Step 3: There are 5 options that available for applicant to request such as: Vente and Donation Definitive Services, Hypothec and Mortgage Services, Documents Tracking Via QR Code, Documents Saved and Requested and Declaration of Adjudication Areas Step 4: Select the services to be requested, fill in the service request form and provide supporting documents as require, then submit the applications. Step 5: If the application is accepted, the applicant will receive a notice to pick up their final documents and pay the service fees at the Phnom Penh Department of Land Management, Urban Planning, Construction and Cadaster. Conclusion In conclusion, the launch of MLMUPC's new digital public service represents a pivotal step towards modernizing Cambodia's land management system. By embracing digitalization, the Ministry is not only improving the efficiency and accessibility of crucial services, but also reinforcing the Royal Government’s commitment to economic development as outlined in the Pentagon Strategy. As these services are piloted in Phnom Penh, the initiative promises to pave the way for a more streamlined and user-friendly approach to land registration, reflecting Cambodia's continued progress toward digital transformation and sustainable socioeconomic growth. Authors: Vicheka Lay, Tanadee Pantumkomon, Makara Um and Hort Lypheng

Overview: On August 27, 2024, the Royal Government of Cambodia issued Sub-Decree No. 194 ANKr.BK, establishing the National Committee on Trade Remedy. This sub-decree aims to effectively enforce and promote the implementation of the Law on Trade Remedy, which is a critical framework for regulating and resolving trade disputes within Cambodia and with other countries. Key Provisions: Committee Composition: The National Committee on Trade Remedy is chaired by the Minister of Commerce, ensuring that the country's trade policies align with governmental objectives. The permanent vice-chair is a Secretary of State from the Ministry of Commerce, who plays a pivotal role in the ongoing operations of the committee. Additional vice-chairs include a Secretary of State from the Office of the Council of Ministers and one from the Ministry of Economy and Finance. The committee comprises representatives from various ministries and governmental bodies, including the Ministry of Industry, Ministry of Justice, Council for the Development of Cambodia, Customs and Excise, General Department of Taxation, and the General Directorate of Internal Trade. These members collectively bring diverse expertise to the committee's functions. Roles and Responsibilities:  Implementation and Compliance: The committee is tasked with implementing procedures that adhere to the Law on Trade Remedy and other relevant international agreements. This ensures that Cambodia's trade practices are consistent with global standards. Confidentiality and Legal Documentation: The committee establishes confidentiality protocols for complaints submitted to it and prepares official documentation for submission to competent courts. This process safeguards sensitive information while ensuring that legal processes are properly followed. Legal Opinions and Amendments: The committee is responsible for reviewing and providing legal opinions related to the Law on Trade Remedy's implementation. It also proposes amendments to existing regulations to ensure they remain relevant and effective. International Cooperation: The committee collaborates with other countries on trade remedy issues, facilitating international trade relations and dispute resolution. Advisory and Technical Support: The committee can invite development partners, technical advisors, or local and international experts to assist in fulfilling its roles. This external support enhances the committee's ability to address complex trade issues. Sub-Committees and Working Groups: To efficiently carry out its responsibilities, the committee has the authority to establish sub-committees or specific working groups focused on particular tasks. Governance: The committee is required to convene at least two meetings per year, with additional extraordinary meetings scheduled as necessary. This regular convening ensures ongoing oversight and responsiveness to emerging trade issues. The meetings are chaired by the permanent vice-chair, with mandatory attendance from all committee members. The Information and Legal Notification Department of the Ministry of Commerce serves as the secretariat to the committee, providing administrative and logistical support. Budget and Funding: The committee's operations are funded by the national budget, supplemented by revenues from penalties and other services. This financial structure ensures the committee has the resources needed to fulfill its mandate. Conclusion: The formation of the National Committee on Trade Remedy marks a significant step in Cambodia's efforts to regulate international trade disputes and align its trade practices with international standards. By establishing a structured and well-resourced committee, the Cambodian government has laid the groundwork for effective enforcement of trade remedies, which will ultimately contribute to a fairer and more competitive trading environment. Authors: Vicheka Lay and Makara Um,

Overview: On August 27, 2024, the Royal Government of Cambodia issued Sub-Decree No. 194 ANKr.BK, establishing the National Committee on Trade Remedy. This sub-decree aims to effectively enforce and promote the implementation of the Law on Trade Remedy, which is a critical framework for regulating and resolving trade disputes within Cambodia and with other countries. Key Provisions: Committee Composition: - The National Committee on Trade Remedy is chaired by the Minister of Commerce, ensuring that the country's trade policies align with governmental objectives. - The permanent vice-chair is a Secretary of State from the Ministry of Commerce, who plays a pivotal role in the ongoing operations of the committee. - Additional vice-chairs include a Secretary of State from the Office of the Council of Ministers and one from the Ministry of Economy and Finance. - The committee comprises representatives from various ministries and governmental bodies, including the Ministry of Industry, Ministry of Justice, Council for the Development of Cambodia, Customs and Excise, General Department of Taxation, and the General Directorate of Internal Trade. These members collectively bring diverse expertise to the committee's functions. Roles and Responsibilities: - Implementation and Compliance: The committee is tasked with implementing procedures that adhere to the Law on Trade Remedy and other relevant international agreements. This ensures that Cambodia's trade practices are consistent with global standards. - Confidentiality and Legal Documentation: The committee establishes confidentiality protocols for complaints submitted to it and prepares official documentation for submission to competent courts. This process safeguards sensitive information while ensuring that legal processes are properly followed. - Legal Opinions and Amendments: The committee is responsible for reviewing and providing legal opinions related to the Law on Trade Remedy's implementation. It also proposes amendments to existing regulations to ensure they remain relevant and effective. - International Cooperation: The committee collaborates with other countries on trade remedy issues, facilitating international trade relations and dispute resolution. - Advisory and Technical Support: The committee can invite development partners, technical advisors, or local and international experts to assist in fulfilling its roles. This external support enhances the committee's ability to address complex trade issues. - Sub-Committees and Working Groups: To efficiently carry out its responsibilities, the committee has the authority to establish sub-committees or specific working groups focused on particular tasks. Governance: - The committee is required to convene at least two meetings per year, with additional extraordinary meetings scheduled as necessary. This regular convening ensures ongoing oversight and responsiveness to emerging trade issues. - The meetings are chaired by the permanent vice-chair, with mandatory attendance from all committee members. - The Information and Legal Notification Department of the Ministry of Commerce serves as the secretariat to the committee, providing administrative and logistical support. Budget and Funding: The committee's operations are funded by the national budget, supplemented by revenues from penalties and other services. This financial structure ensures the committee has the resources needed to fulfill its mandate. Conclusion: The formation of the National Committee on Trade Remedy marks a significant step in Cambodia's efforts to regulate international trade disputes and align its trade practices with international standards. By establishing a structured and well-resourced committee, the Cambodian government has laid the groundwork for effective enforcement of trade remedies, which will ultimately contribute to a fairer and more competitive trading environment. Authors: Vicheka Lay and Makara Um  

REGULATION AND OBJECTIVES OF SPECIAL TAX AUDIT UNIT On July 16, 2024, the Cambodian Prime Minister signed into law Sub-Decree No. 160 ANKr.BK, establishing a special tax audit unit under the supervision of the General Department of Taxation (GDT) within the Ministry of Economy and Finance. This strategic move aims to address and expedite the resolution of various taxpayer challenges related to tax audits. The creation of this specialized unit is expected to enhance the business and investment environment in Cambodia by streamlining the tax audit process and providing more efficient support to taxpayers. By addressing audit-related issues more promptly, the government hopes to foster a more transparent and predictable tax landscape, thereby boosting investor confidence and encouraging economic growth.  FUNCTION AND AUTHORITIES The unit's core responsibilities include managing and conducting tax audit operations in strict compliance with the applicable tax regulations, and adhering to the established guidebook on tax audit formalities and procedures for both tax officers and taxpayers under its jurisdiction, including conducting risk assessments and analyses to ensure that comprehensive audits are efficiently conducted only once per taxpayer. The unit is also responsible for preparing an annual tax audit plan and issuing notifications to enterprises that are subject to special tax audits. Furthermore, the special unit is empowered to request the Director General of the GDT to review and resolve any outstanding issues that have not yet been settled by the GDT. JURISDICTION The unit's jurisdiction will cover enterprises that have been awarded the gold tax compliance certificate, as well as other enterprises identified by a committee to be established by the GDT under the Ministry of Economy and Finance. Authors: Vicheka Lay,Tanadee Pantumkomon and Makara Um

On 23rd July 2024, the Ministry of Information issued the Prakas No. 084 PrK.Info, in order to determine the forms, procedures, and measures to govern the commercial advertisement of alcoholic products.Additionally, this Prakas also aims to guarantee social order, public welfare, reducing impacts on the economy, culture, tradition, as well as to promote fair competition. This Prakas only covers commercial advertisement on alcoholic products with ethanol degree more than 3 percent of the quantity.  KEY PROVISIONS Content Restriction: Anyone seeking to proceed with such commercial advertisement, they are required to obtain permission from the working group that governs commercial advertisement of alcoholic products. Article 3 of the Prakas mentions the forms of commercial advertisement of alcoholic products that are unauthorized. These non-authorizations include Any advertisement that attaches with untruthful description; Advertisement that intends to attract people to consume the alcoholic products, promote sexual capacities or other sexual attraction; Advertisement or propaganda on the event’s stage; Advertisement that targets under-aged people. Location Limitation: It is banned all kinds and forms of advertisement that is less than 200 meters from educational institutions, health centers, religious institutions, historical-cultural resorts and international airport. Target Limitation: The Prakas further bans advertisement via all kinds of television and radio between 18:00 to 20:00 pm. Pornographic and violent messages, advertisement targeting pregnant women and women that feeding children are all banned. Religious and cultural people, patients and pregnant women have to be respected by the advertisers. Specific Authority: Application for permission to proceed with commercial advertising of alcoholic products could be submitted to the one-stop service mechanism of municipal-provincial administration (city, district, khan) after the request is approved by the working group governing the commercial advertisement of alcoholic products. ENFORCEMENT AND PENALTIES The Prakas gives three months to the individuals, businessperson, legal entities to apply for permission from the working group governing the commercial advertisement of alcoholic products. Penalties will apply for those that conduct the advertisement without permission. Authors: Vicheka Lay and Makara Um