On 30 January 2025, the Ministry of Economy and Finance (“MEF”) issued Prakas No. 122 MEF.PrK.GDT regarding the tax incentives for enterprises in the tourism sector in Siem Reap. Eligible enterprises include hotels, guesthouses, restaurants, and tour agents that are properly registered with the tax authority and operate in Siem Reap. According to Article 3 of the Prakas, the tax incentives include:
1. Exemption from paying all monthly taxes, excluding Value Added Tax and Tax on Accommodation, from January to December 2026.
2. Exemption of 2026 Tax on Income (“TOI”). Enterprises that received tax incentives may request a tax credit for the monthly Prepayment on Tax on Income paid, which can be offset against the 2027 Tax on Income.
3. No tax audit will be conducted for the period of 2026.
However, to qualify for these tax incentives, enterprises must meet the obligations outlined by the MEF in Article 4 of the Prakas:
1. Medium and large taxpayers must submit their monthly tax returns through the General Department of Taxation’s e-Filing system and submit the annual tax return via the TOI e-Filing system in accordance with relevant laws and legal documents related to taxation. Small taxpayers are required to lodge their tax returns in the specified form, on time, and at the location set by the tax authority. Alternatively, small taxpayers may lodge their tax returns through the GDT Tax Prefiling App.
2. All taxpayers are required to keep and maintain accounting records and information related to their business activities in accordance with applicable laws and legal documents concerning taxation.
This Prakas is issued to encourage all investors and businessmen with a tax-registered business in the tourism sector in Siem Reap. However, registered taxpayers must fulfil the obligations outlined above to qualify for tax incentives under Article 3 of the Prakas. Siem Reap-based tourism businesses should ensure compliance with the new Prakas and make the most of these ongoing incentives to support their operations in 2026.
