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Investment in Cambodia

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Investment in Cambodia

  1. 1. Investment in Cambodia Saily Sor
  2. 2. Table of contents  Cambodia at a glance  Council for Development of Cambodia(CDC) Role and Responsibility  Investment Approval Process  Legal business type in the company according to the law of investment  Major investment in Cambodia  Incentive of Law of investment in Cambodia  Cambodia Accounting System  Cambodia Tax system  Summary of Tax rate in Cambodia  When is the tax should be paid?  Reason to invest in Cambodia  Cambodia economic situation  Map explorer of Cambodia  Average flight from Cambodia to other ASEAN countries  ASEAN Infrastructures  Recent Development in Cambodia  Prohibited fields of investment  Comparison between Cambodia and Thailand  References
  3. 3. Cambodia at a glance Land area: 181,035 km2 Population: 15,458,332 ( 2014 Estimated) GDP: USD $18Billion ( Estimate2015) GDP per capita: $1,146.083 ( 2015estimate) Legal system: Constitutional Monarchy Political: Prime Minister of Cambodia is selected by voting from people Membership: WTO,IMF,WB,UN, ASEAN
  4. 4. The Council for Development of Cambodia (CDC) is the sole and One- Stop Service organization responsible for the rehabilitation, development and oversight of investment activities. The CDC is responsible for the evaluation and the decision-making on all rehabilitation, development and investment project activities (Article 3, “Amended Law on Investment”) Council for Development of Cambodia (CDC) Role and Responsibility
  5. 5. Investment application CDC issues a Conditional Registration Certificate to the Applicant  Company Registration / Ministry of Commerce  Relevant licenses, as appropriate / Ministry of Industry and Energy  Review and approval of construction plan / local authorities-  Ministry of Land Management, Urban Planning and Construction.  Initial environmental impact assessment / Ministry of Environment  Tax Department Registration / Ministry of Economy and Finance CDC issues a Final Registration Certificate to the Applicant 3 working days 28 working days Investment Approval Process
  6. 6. Legal business types in Company according to Law of Investment A. Enterprise B. Limited Company C. Partnership D. Foreign Business a. Commercial representative b. Branch c. Subsidiary
  7. 7. Major Investment 2011 2012 2013 2014 2015 2011-2015 Agriculture 794.5 556.6 1,128.80 264.7 482.6 3,227.20 Industries 1,340.80 1,489.70 1,106.70 2,835.60 919.3 7,692.10 Infastructure 2,782.30 227.8 2,620.80 353.5 3,129.80 9,114.20 Tourism 845.6 691.5 106 479.6 111.9 2,234.60 Total 5,763.20 2,965.60 4,962.30 3,933.40 4,643.60 22,268.10 Major Investment in Cambodia 26% 10% 17% 36% 11% Major Investment Major Investment Agriculture Industries Infastructure Tourism
  8. 8. Improve infrastructure and utility Improve modern education and technical training Highly recommend for investment project that bring back the positive development Encourage and support for project that bring back skill and develop innovation Encourage and support for investment project that develop new product by using local process product Highly recommended investment to consult with CDC in order to form the business in Cambodia Incentive of Law of Investing in Cambodia
  9. 9. Accounting System KICPAA (Kampuchea Institute of Certified Public Accountants and Auditors) CASs(Certifier of Accounting Standard) ASEAN federation of accountants (AFA) IFRS(International Financial Report Standard) Cambodia Accounting System
  10. 10. Tax Laws Law on Taxation of The Kingdom of Cambodia 2003 Financial act 1994,1995,2007 Other provision(Prakash, Sub decree, direction and notification…) Cambodia Tax System
  11. 11. Corporation tax rate: 20% Sales/service tax rate: 10% Oil, gas, and business related to mineral exploitation is 30% Insurance: 5% Withholding tax: 10% to 15% VAT 10%, 0% for industries who supply certain goods and service to exporters Personal income tax : 0% to 20% Cambodia no tax on capital gain Taxes on specific goods and services:  Gazed soft drinks, alcoholic product, beer : 20%  Cigarettes: 15%  Entertainment services, air transport of passengers: 10%  Telephone services: 3% Summary of Tax Rate in Cambodia
  12. 12. Every month by before 15th day of the following month. For annual profit tax by before March 31st of the following year. VAT by before 20th day of the following month. When is the tax should be paid?
  13. 13. Reason to Investment in Cambodia Rich in natural resource Friendly investment environment Full supply of utility( electricity and water) Fully supporting from government on private sector One stop service by CDC Has the lowest labor cost and a dynamic workforce among ASEAN countries Have international airport and port for transport the products Member of ASEAN Member of Mekong Fives WTO member since 2004 increasing trade integrations Not entered double tax agreement
  14. 14. Cambodia economic Situation
  15. 15. Map Explorer of Cambodia
  16. 16. Average Flight from Cambodia to other ASEAN Countries
  17. 17. ASEAN Infrastructures
  18. 18. Recent Development in Cambodia Aeon Shopping Mall Camko City Olympia City Wattanac Capital and Canadia Tower
  19. 19.  Production/processing of psychotropic substances and narcotic substances  Production of poisonous chemicals, agriculture pesticide/insecticide and other goods by using chemical substances prohibited by international regulations or the World Health Organization, that affect the public health and environment  Processing and production of electrical power by using any waste imported from a foreign country  Forestry exploitation business prohibited by Forestry Law. Prohibited Fields of Investment
  20. 20. Compare between Cambodia and Thailand Cambodia Thailand Currency Riel Bath Currency rate($1) 4079.63 Riel 35.25 Bath Trade organizations WTO,ASEAN,AFTA WTO,APEC, IOR-ARC,ASEAN GDP $18.61 billion $1.054 trillion GDP per capital $1,225 $15,319 GDP growth 0% -0.30% Inflation 5% 3.02% Population 15.6 million 68 million Land area 181,035 km2 513,120 km² Industry Tourism, garments, construction, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles Tourism, textiles and garments, agricultural processing, beverages, tobacco, cement, light manufacturing such as jewelry and electric appliances, computers and parts, integrated circuits, furniture, plastics, automobiles and automotive parts; world's second-largest tungsten producer and third-largest tin producer Export $6.781billion $214.37 billion Export Commodities Clothing, timber, rubber, rice, fish, tobacco, footwear Electronics, computer parts, automobiles and parts, electrical appliances, machinery and equipment, textiles and footwear, fishery products, rice, rubber Import $8.895million $202.65 billion Import commodities Petroleum products, cigarettes, gold, construction materials, machinery, motor vehicles, pharmaceutical products Capital goods, intermediate goods and raw materials, consumer goods, fuels Labor force 8.8million 39.41 million Electricity import 1.83billion kWh 9.575 billion kWh Electricity export 0 1.535 billion kWh Telephone line 584,000 6.391 million Mobile 19.1 million 84.075 million Internet user 78,500 17.483 million Railway 690 kmm 4,071 km Roadway 39,618 km 180,053 km Waterway 3,700 km 4,000 km
  21. 21. Sector 2009 2010 2011 2012 2013 2014 Total Agriculture Products 60 72 64 69 61 37 363 Mineral and Ceramics 13 18 31 31 26 27 146 Light Industries/Textiles 48 65 62 69 67 37 348 Metal Products and Machinery 157 217 300 452 410 296 1,832 Electric ad Electronic Products 108 189 180 261 241 168 1,147 Chemicals and Pape 63 107 101 183 169 106 729 Service 165 188 166 292 250 241 1,302 Total 614 856 904 1,357 1,224 912 5,867 Major Investment in Cambodia 2011 2012 2013 2014 2015 2011-2015 Agriculture 794.5 556.6 1,128.80 264.7 482.6 3,227.20 Industries 1,340.80 1,489.70 1,106.70 2,835.60 919.3 7,692.10 Infastructure 2,782.30 227.8 2,620.80 353.5 3,129.80 9,114.20 Tourism 845.6 691.5 106 479.6 111.9 2,234.60 Total 5,763.20 2,965.60 4,962.30 3,933.40 4,643.60 22,268.10 Foreign Investment Projects Approval by BOI
  22. 22.  http://www.iasplus.com/en/jurisdictions/asia/cambodia  http://www.cambodiainvestment.gov.kh/investors-information/taxation-and-accounting.html  https://en.wikipedia.org/wiki/Cambodia  http://uk.practicallaw.com/3-524-4317#a929134  http://country-facts.findthedata.com/l/110/Cambodia  http://www.pwc.com/kh/en/publications/2012/assets/cambodia-tax-book2012-05042012.pdf  http://www.tax.gov.kh/en/brief.php  http://www.rd.go.th/publish/fileadmin/user_upload/AEC/AseanTax-Cambodia.pdf  http://www.cambodiainvestment.gov.kh/law-on-accounting-law-on-corporate-accounts-their-audit-and-the-accounting- profession_020708.html  http://www.cambodiainvestment.gov.kh/investment-scheme/investment-application-procedures.html  http://pps.com.kh/PPSUploadFiles/iv/167_en-us.pdf  http://www.cambodianembassy.org.uk/publications/PDF/Tourism/Investing%20in%20Cambodia%202013-2014.pdf  http://www.cambodiainvestment.gov.kh/investment-enviroment/investment-trend.html References

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