Legal Compliance Alert: Reminder on 2023’s Key Upcoming Annual Compliance Matters
Issue: No. 013P/22 – 30 December 2022
Complying with annual regulatory compliances can be a familiar for existing companies. However, this may be challenging for new investors. This Legal Compliance Alert provides you a reminder to 2023’s key upcoming annual compliance matters. This include the following:
- Filing of Annual Declaration of Com mercial Enterprise (ADCE)
| Deadline | : | 3 months from the 12th month of the enterprise’s re-registration or registration date on the Ministry of Commerce’s online system |
| Description | : | As required by law and relevant regulations, all companies, branches, and representative offices are required to file the ADCE to the Ministry of Commerce. Following the Prakas N. 107, online submission of the ADCE must be performed within three months from the 12th month of the enterprise’s re-registration or registration date on the Ministry of Commerce’s online system. Failing to perform within three months of the due date, it will be subject to a fine. |
- Renewal of Patent Certificate 2023
| Deadline | : | End of March each year |
| Description | : | Patent tax is an annual tax which shall be paid based on business activities, each location of the business, classification of tax payer, and the amount of annual turnover. All taxpayers of the self-assessment regime are required to register and pay Patent Tax by the end of March each year for the business activity that they carry out. For tax payers with multiple business activities, they shall pay multiple patent taxes for each business activities. |
- Certificate of Compliance (COC)
| Deadline | : | End of March each year (for certain required documents) |
| Description | : | A Qualified Investment Project (QIP) may not claim and is not entitled to any investment incentives unless the QIP is issued with a Certificate of Compliance (COC). The COC shall be issued by the Council for the Investment of Cambodia (CDC) within 90 (ninety) working days after the end of financial year. However, failure to issue within this period, the COC is still deemed to be issued, but is subject to the revocation if CDC finds that all required document has not been provided to CDC.
Every investor carrying a QIP shall lodge with the CDC the following information: – An annual financial statement no later than the end of March of the following year; – A Certificate of Tax Obligation Compliance from Tax Department; – Quarterly reports on the effective import of production equipment and production inputs and the effective export of finished products; and – Other required information by CDC. |
- Application for Quota for Using Foreign Labour Force
| Deadline | : | End of January 2023 (extended period). Generally, it shall be done by end of November each year. |
| Description | : | By law, any enterprise wishing to employ foreign work force shall obtain permission from the Ministry of Labour and Vocational Training. The request shall specify clearly about the current number of Cambodia worker and foreign worker, and the reason to use foreign worker. Generally, this request shall be made no later than the end of November each year, but the Ministry may extend the application period. The use of foreign worker is limited to 10% of Cambodia workers:
– Office personnel: 3% – Specialized personnel: 6% – Non-specialized personnel: 1% In case there is the need to use foreign worker more than 10%, the employer shall clearly mention each foreign worker’s qualification and the actual nature of work to perform. |
- Application for / extension of Work Permit for Foreign Employee
| Deadline | : | End of March each year |
| Description | : | Foreigners working in Cambodia shall have a valid employment card (work permit). This work permit is valid for 1 calendar year, renewable. Under the above law and regulations, the application for a new work permit or its renewal shall be completed by the end of March each year. Failing to do so shall be subject to fine and penalty provided under Cambodian labour law. |
We hope that the above legal compliance alert is helpful for your investment and help you to invest more confidently.
Disclaimer
The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any question or need any assistance, please feel free to contact us:
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SON Sokeng,
Partner, Managing Director sokeng.son@sithisak-lawoffice.com +855 12 885 870
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He has more than 8 years of professional experiences in corporate, commercial, investment and capital market sector in Cambodia. He has leaded a legal counsel team to advise and assist ACLEDA Bank Plc. in the process of listing on the Cambodia Securities Exchange (CSX). He has been a team member of a legal counsel team to advise and assist in the IPO process of Phnom Penh Autonomous Port (PPAP). He is currently leading a legal counsel to advise and assist in an IPO of a SME for its proposed listing on the growth board of the CSX. |
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NOEUM Sokvichhai,
Partner, Head of Corporate, Commercial and Investment Practice Group sokvichhai.noeum@sithisak-lawoffice.com +855 12 826 785
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Sokvichhai has more than 6 years of experiences in labour, corporate, commercial and investment advisory in Cambodia. He actively advices and assists various businesses in commercial, tax, and labour registration, business licensing, products registration & distribution, business recapitalization & restructuring, and mergers & acquisitions transaction. He also has particular experiences in advising collective investment fund and trust business, investment incentives & qualified investment project, and labour & employment related issues. Besides extensive compliance knowledge and experiences, he also assists major business in preparing and reviewing various commercial agreements, including but not limited to loan and security documents, join venture, partnership & shareholder agreements, franchise & distribution agreements, service & supply agreements, note subscription, pledge and guarantee agreements and other commercial contracts. Currently, Sokvichhai is also leading Sithisak’s Investigation Team to investigate any labour related misconduct within client’s company. |
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