Eligibility & Pre-Application Assessment

The proposed activity must not appear on the Negative List and must not raise national-interest or significant environmental-sensitivity concerns that require special processing. Projects with capital under approximately USD 5 million are generally handled by the Provincial/Municipal Investment Sub-Committee (PMIS); larger projects are handled by the central CDC. We conduct a pre-filing eligibility review, sector classification against the incentive annexes, and identification of all secondary licenses that will appear on the Conditional Registration Certificate (CRC).

Investment Proposal Submission

The applicant (or authorized representative with power of attorney) submits a completed Investment Proposal / Application Form together with the prescribed application fee (currently 7,000,000 Riels) to the CDC or the competent PMIS. Applications may be filed through the CDC’s online platform. Supporting documentation typically includes:

• Company statutes / articles of association and Certificate of Incorporation (or draft if simultaneous incorporation).

• Certified copies of passports (foreign shareholders/directors) or national ID cards (Cambodian nationals), together with recent photographs.

• Criminal-record certificates for foreign shareholders and directors.

• Bank certificate evidencing deposit of at least 25 % of registered capital.

• Where a shareholder is a legal entity: certified certificate of incorporation, board resolution appointing the representative, and good-standing / background statement.

• Documents identifying the project location (hard/soft title, lease agreement, or land-concession contract).

• Site map, production-building plan, administration-building plan and equipment-layout plan.

• Self-declaration letter confirming accuracy of information.

• Any sector-specific feasibility studies, environmental screening or technical descriptions required by the CDC.

Conditional Registration Certificate (CRC)

If the Investment Proposal is complete and the activity is not on the Negative List, the CDC/PMIS issues a Conditional Registration Certificate within three working days (or confirms automatic approval if the deadline is missed). The CRC: (a) lists every secondary approval, authorization, clearance, license, permit or registration required for the project to operate, together with the responsible ministry or authority; (b) confirms the incentives to which the QIP is entitled; and (c) recognizes the legal entity. A Letter of Non-Compliance is issued if the proposal is deficient, stating the reasons and the additional information required.

Secondary Licenses & Final Registration Certificate (FRC)

All government entities listed on the CRC must issue the required documents no later than the 28th working day from the date of the CRC; unjustified delay is sanctionable. The CDC/PMIS coordinates the one-stop process and issues the Final Registration Certificate (FRC) within 28 working days of the CRC. The date of the FRC is the official commencement date of the QIP. From that moment the investor may claim the approved incentives, subject to ongoing compliance.

A QIP elects one of two basic incentive packages:

• Option 1 – Tax on Income (TOI) exemption for 3 to 9 years (period determined by investment-activity category / technology level / priority sector set out in the Sub-Decree annex), followed by a graduated reduced TOI rate for an additional six years. Parallel exemption from Prepayment of Tax on Income (PTOI) and, subject to audited accounts, Minimum Tax. Export-duty exemption applies unless otherwise provided by law.

• Option 2 – Special depreciation of capital expenditure in accordance with tax regulations, plus entitlement to deduct up to 200 % of specified qualifying expenses for a period of up to 9 years (again linked to activity category).

Additional incentives available to QIPs include: 0 % VAT on the purchase of locally produced production inputs; and a 150 % deduction from the tax base for expenditure on research & development / innovation, vocational training of Cambodian workers, construction of worker facilities (accommodation, canteens, nurseries), production-line modernization, and certain welfare or waste-treatment infrastructure.