Cambodia Government Facilitates Import Exemptions for Construction Projects

• 22 February 2025
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In a significant move to boost investment in the construction sector, the Cambodian government has announced a new procedure to exempt imports of construction materials from customs duties, special taxes, and state-paid value-added tax. This initiative targets investment projects registered with the Capital-Provincial Investment Subcommittee and is detailed in Inter-Ministerial Prakas No. 070 MEF.Prokas, issued on 20 January 2025.

The Ministry of Economy and Finance, in collaboration with the Ministry of Interior, has implemented these incentives to streamline the import process for qualified investment projects (QIPs) and expansion projects. The new regulations permit all investors to apply for permits to import essential construction materials, construction equipment, production equipment, and production inputs without incurring the usual taxes, provided their projects meet specific qualifications.

Applications can be submitted through the single-entry service unit of the provincial and capital administration or via the information technology centre. After receiving an application, the provincial and capital investment subcommittees are tasked with reviewing and making decisions through an inter-agency mechanism within a maximum of 15 working days.

It is essential to note that while these permits offer significant tax exemptions, investment projects must still obtain any relevant licenses or registrations mandated by existing laws and regulations.

Furthermore, the Royal Government of Cambodia has supplemented this initiative with a new sub-decree aimed at implementing the Investment Law of the Kingdom of Cambodia. This sub-decree encompasses seven chapters and 28 articles, applying to any investment projects that receive registration and recognition from either the Council for the Development of Cambodia or the Capital and Provincial Investment Sub-Committee. (Read more)

These measures reflect the government’s commitment to fostering a conducive environment for investment and development in Cambodia’s burgeoning construction industry.

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