MEF Unveils Tax Relief Measures to Revitalize Tourism for Hospitality Business in 5 Provinces

• 24 February 2024
• Local News
• 1150 Views

To rejuvenate the tourism sector, the Ministry of Economy and Finance (MEF) has introduced tax incentives for tourism enterprises operating in five key provinces. According to the recent Prakas No. 119 MEF.PrK.PD issued on 8th February 2024, eligible businesses, including hotels, guesthouses, restaurants, and travel agencies, are set to benefit from these measures.

This intervention by the government is aimed at supporting tax-registered tourism enterprises in Phnom Penh, Siem Reap, Sihanoukville, Kep, and Kampot. Notably, tourism enterprises in Siem Reap are granted income tax exemption for the year 2023 and are relieved of various monthly taxes (excluding VAT and accommodation tax) from October 2023 until the conclusion of June 2024.

For income tax exemptions, businesses that have already made payments will be eligible for a tax credit, deductible against the income tax for the subsequent year, 2024. Additionally, these enterprises will be absolved of any tax liabilities predating 2023, encompassing tax, additional tax, 25% additional tax, and accrued interest. Furthermore, they will be exempt from tax audits for the period spanning 2020 to 2023.

Tourism-related businesses in Phnom Penh, Sihanoukville, Kep, and Kampot provinces will enjoy exemption from tax audits for the years 2020-2022. Despite these benefits, it is imperative for these enterprises to fulfill their obligations by filing tax returns and maintaining consistent accounting records for their respective tax categories.

• Tourism and Travelling