Welcome to this edition of DFDL’sCambodia Investment and Tax Updates. In this issue we present Cambodian regulations and information touching on the following:

  • Notification on the Market Interest Level for Loans in 2014
  • Notificationon Accepting Applications for Collective Mark Registration
  • Guidelines onthe Procedure to Apply for and Extend Foreign Work Permits and Foreign Employment Cards
  • Sub-Decree on Travel Document for Cambodian Worker Overseas
  • Registration procedures for the Preservative Disposition and Attachment against unregistered Immovable Property

BANKING 2015 NOTIFICATION ON THE MARKET INTEREST LEVEL FOR LOANS IN 2014, Notification № 881 (GDT) 05 February 2015

 In accordance with the provision of article 18 of the Law on Taxation, Section 2.5 and Section 5.9 of Prakas № 1059 Br.K.SHV.PD, dated December 12 2013, and in referring to the Guideline № 151 GDT on Limit of Interest Expense of Enterprise, dated January 22 2014, the General Department of Taxation (GDT) has determined the market interest rate for loans at the rate of 10.15% p.a. for 2014.

This rate results from the calculation of average interest rates for loan of eight main local commercial banks. The General Department of Taxation notifies all taxation institutions and all real regime taxpayers to implement the substance of this notification for the taxation findings for the year 2014 from the signing date onward.

INTELLECTUAL PROPERTIES 2015 NOTIFICATION ON RECEIVING APPLICATIONS FOR COLLECTIVE MARK REGISTRATION,Notification № 252 (MOC), 26 January 2015

 This notification advises the public that in compliance with article 2 (b) and article 16 of the Law on Marks, Trade Names and Acts of Unfair Competition, and article 23 of Sub-Decree on Implementation of Law on Marks, Trade Names and Acts of Unfair Competition, every application for collective mark registration shall be required to be submitted to the Ministry of Commerce in the attached form.

Applicant shall attach the Regulation of the Management and Use of the Collective Mark including the quality of goods, the Regulation related to quality inspection and relevant documents in the annex of application.

LABOR 2015 PROCEDURE TO APPLY FOR AND EXTEND FOREIGN WORK PERMITS AND FOREIGN EMPLOYMENT CARDS, Guideline № 003/15 (MoLVT) 26 January 2015

The Ministry of Labor and Vocational Training informs the owner or director of enterprises or establishments and foreigners governed under article 1, article 21, article 67, article 261, article 264, and article 265 of the Labor Law of the Kingdom of Cambodia and Prakas № 195 K.B/Br.K on the Foreign Work Permit and Foreign Employment Cards, and Prakas № 196 K.B/Br.K on the Employment of Foreign Labor, dated August 20 2014, that in order to work or be permitted to work for any establishments or enterprises, every foreigner shall have a Foreign Work Permit and Foreign Employment Card issued by the Ministry of Labor and Vocational Training.

Such employers and all foreigner workers must request the permit for employment of foreign labor (Quota) by no later than the end of November each year at the Department of Employment and Labor of the Ministry of Labor and Vocational Training or at the Provincial Department of Labor and Vocational Training. Owner or director of an enterprise authorized to operate a business in Phnom Penh Municipality must request the permit for the employment of foreign labor (Quota) at the Phnom Penh Department of Labor and Vocational Training or at the Department of Employment and Manpower.

Upon receiving the approval letter on the employment of foreign labor (Quota), employer must complete the request form and extension of Foreign Work Permit and Foreign Employment Card for their foreign workers/employees by no later than the end of March of each year (for the extension of Foreign Work Permit and Foreign Employment Card). Employers who employ a foreign workforce or a foreigner without permission to use foreign labor and without Foreign Work Permits and/or Foreign Employment Cards shall be fined from 488,000 to 720,000 Riels in accordance with the article 369 and article 372 of the Labor Law or shall be punished in accordance with the Law of the Kingdom of Cambodia.

TRAVEL DOCUMENTS FOR CAMBODIANS WORKING OVERSEAS, Sub-Decree № 12 ANKR.BK (RGC), 18 February 2015

It is decided to create a travel document to be provided to Cambodians working overseas as shown in a specimen attached to this Sub-Decree. The travel document is for travelling across the border from the Kingdom of Cambodia to foreign countries where Cambodian workers obtain approval/permission to stay and work there officially.

The Ministry of Interior has a competence to issue the travel document, and shall have the right to confiscate or reject the travel document for Cambodians overseas working in cases of misuse, fraud or loss. The travel document shall be valid for a five year period without extension. Procedure, formalities in issuing, confiscating or rejecting the travel document shall be determined by Inter-ministerial Prakas of the Ministry of Interior and the Ministry of Labor and Vocational Training.

JUDICIARY 2015 REGISTRATION PROCEDURES FOR THE PRESERVATIVE DISPOSITION AND ATTACHMENT TO UNREGISTERED IMMOVABLE PROPERTY, Joint Prakas № 214 BR.K. DNS (MLMUC and MOJ), 21 November 2014

This Joint Prakas aims at ensuring the effectiveness of registration regarding the preservative disposition and attachment against immovable property that is not properly registered in accordance with the Code of Civil Procedure and other legal standards.

This Prakas intends to regulate the procedure for registration through the entrustment letter for registration of the court, which has been submitted to the competent institution for registration regarding immovable property that is not registered.

This Prakas extends the scope for implementation: (a) land which is not registered; and (b) private unit of a co-owned building that is not registered.

When issuing a ruling of compulsory sale, or ruling of provisional attachment, or a ruling of provisional disposition which prohibits the disposition to the immovable that is not registered, the court clerk shall make a entrustment letter for registration to be submitted to the competent institution in order to start the procedure for initial land registration and/or for registration of the private unit/part of the initial co-owned building, and for registration of attachment, or provisional attachment, or provisional distribution which prohibits disposition based on the form and substance as detailed in article 6 of this Prakas.

This Prakas shall be implemented the same as the procedure for registration through the entrustment letter to be registered regarding the preservative disposition and attachment against the unregistered immovable property, which has been submitted to the competent cadastral administration prior to the implementation of this inter-ministerial Prakas. However, this provision shall not be implemented in the event that those registration procedures have already been implemented. This Prakas shall implement from the date of signature onward.