Reference Thmey Thmey News
The Cambodian government has unveiled a new package of tax incentives aimed at boosting the country’s agricultural sector, offering significant financial relief to companies engaged in the cultivation, production, domestic supply, or export of agricultural goods.
Under a new Prakas (Ministerial Order) on “Tax Incentives for the Agricultural Sector”, signed on November 19 by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth, eligible enterprises will receive three major tax concessions beginning January 1, 2026:
- Suspension of Minimum Tax payments
- Suspension of Prepayment of Tax on Income
- Exemption from withholding tax on payments for services provided by individuals who are not under the self-declaration tax regime
These incentives apply to companies operating across a wide range of agricultural products, including paddy rice, milled rice, corn, beans, pepper, cassava, cashew nuts, rubber latex, Pailin longan, mangoes, bananas, livestock, aquaculture, and domestic palm oil products used as raw materials for animal feed production.
In addition to the tax concessions, the government will also absorb the Value-Added Tax (VAT) on domestic supplies of goods or services provided to enterprises involved in the listed agricultural activities.
Conditions for Receiving Incentives
To qualify for the incentives, enterprises must comply with several requirements set by the General Department of Taxation:
- Apply for a VAT Certificate under the burden of the State.
- Attach a list of goods or service suppliers to their monthly VAT declaration.
- Maintain accounting records in accordance with existing laws and submit monthly and annual tax declarations on time.
Enterprises supplying domestic palm oil products for production must also provide a list of recipient companies in their monthly VAT filings.
The Ministry of Economy and Finance emphasized that failure to meet any of these conditions will result in the revocation of the tax incentives.
Duration of Incentives
The tax concessions for agricultural enterprises will take effect on January 1, 2026, and remain in place until the end of 2027, according to the Ministry of Economy.
The initiative is part of the government's continued efforts to strengthen Cambodia’s agricultural value chain, reduce production costs, and enhance competitiveness in both domestic and international markets.
