Council for the Development of Cambodia (CDC)
Qualified Investment Project (QIP)
To be admitted as a Qualified Investment Project (QIP), the investor has to register the investment project with the Council for Development of Cambodia (CDC) or Provincials-Municipalities Sub-Committee (PMIS) and receive a Final Registration Certificate (FRC) under the Law on Investment (Article 2 and 6, “Amended Law on Investment”).
Investment Incentive
Investment Incentives granted to a QIP
QIPs are entitled to the following investment incentives (Chapter 5, “Amended Law on Investment”):
QIPs may elect to receive a profit t tax exemption or use special depreciation.
Profit tax exemption (Selective): A tax holiday period is composed of “Trigger Period + 3 years + Priority Period”
– Trigger Period (Maximum 3 years): Commencing on the issuance of the Final Registration Certificate and ending on the last day of the taxation year immediately preceding the earlier of:
(a)- If the QIP derives a profit, the taxation year that the profit is first derived; and
(b) If the QIP derives income from the Investment Activity in respect of the sale of goods or services, the third taxation year after the taxation year in which the income is first derived.
– Priority Period: To be determined according to the type of project and investment capital in the Financial Management Law.
Priority Period
- Investment Project in Light Industry:
- Investment capital amount below US$5million: 0 year
- Investment capital amount between US$5million and US$20miilion: 1 year
- Investment capital amount more than US$20miilion: 2 years
- Investment Project in Heavy Industry
- Investment capital amount below US$50million: 2 years
- Investment capital more than US$50million: 3 years
- Investment Project in Tourism Industry
- Investment capital amount below US$10million: 0 years
- Investment capital more than US$10million: 1 year
- Investment Project in Agriculture and Agro-industry
- Short cycle agriculture project: 1 year
- Long cycle agriculture project; 2 years
- Investment Project in Backbone Infrastructure
– Investment capital amount below US$10million: 1 year
- Investment capital amount between US$10million and US$30miilion: 2 years
- Investment capital amount more than US$30miilion: 3 years
Source:
Chapter 2, Royal Kram NS/RKM/1205/140 on the Promulgation of the Law on the Financial Management in the year 2006
Notice:
The Qualified Investment Project (QIP) must undertake an investment registration process with the Council for Development of Cambodia (CDC) depending on the Type of Investment Project and Lines Ministries, meaning that all processing is under CDC (Package Services). But in currently after obtained an approval from CDC, the investor should be submitted to the Line Ministries for License/Certificate relating to the Investment Project.
For more details, please contact us