🇰🇭 年度合规 — Cambodia

Underestimating the 1% monthly prepayment of tax on turnover

Fix: Cambodia requires a monthly prepayment of corporate income tax equal to 1% of turnover. This is not refundable if the company makes a loss — it becomes the minimum tax. For low-margin businesses, this can exceed the actual 20% tax on profits. Model this into financial projections before committing.

Relying on verbal agreements or informal arrangements

Fix: Cambodia's court system is weak on contract enforcement. Always formalise agreements in writing with clear dispute resolution clauses (preferably specifying arbitration at the National Commercial Arbitration Centre or Singapore International Arbitration Centre). Do not rely on informal relationships for material business arrangements.

Attempting to own land directly as a foreign individual or company

Fix: Foreigners cannot own land in Cambodia. Foreign-owned companies can hold long-term leases (up to 50 years, renewable) or own upper-floor strata-title property. Nominee structures carry legal risk. Structure real estate investments through long-term leases with proper legal documentation.