Aiming to boost agricultural production, a new directive issued on Tuesday suspends profit tax prepayments for companies dealing in a number of agricultural products.
Directive 100, signed by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth, said enterprises engaged in producing, supplying or exporting paddy rice, rice, corn, beans, pepper, cashew nuts, cassava, or rubber are eligible for exemptions of profit tax prepayments.
The exemption is valid for the next 5 years, starting this month, the directive notes.
Song Saran, CEO of Amru Rice, welcomed the move.
“It will boost the competitiveness of Cambodian firms, particularly in the agro-processing industry.
“We would like the government to also consider other tax exemptions for companies involved in agro-processing to attract investors, enhance competitiveness, and create more value,” he said.
To be eligible, companies’ accounting books must comply with national tax law and accounting regulations. Firms must also be caught up on their tax payments.