On March 20th, Securities and Exchange Commission of Cambodia (SECC) issued an announcement to inform the public that SECC temporally stop accepting application for licensing a New Central Counterparty License to Derivatives Trading Firms. Notwithstanding, SECC still encourage persons who want to be a Derivative Brokerage firm and unlicensed Derivative Brokerage firm promptly apply the application. Those who are unlicensed Derivative Brokerage firms failed to get the license from SECC are warned to faced legal action.

For the public information, SECC listed the current four licensed Central Counterparty companies and six licensed Brokerage.

In the same announcement, SECC added that it will carry on accepting the application for licensing a New Central Counterparty License to Derivatives Trading Firms in the future with the date will be specified in another announcement.

It comes to a big surprise for financial analysts and all microfinance institution (MIFs) themselves after National Bank of Cambodia (NBC) issued a Prakas to order all MFIs under its supervision impose no more than 18% interest rate to all kinds of loan from 1st April this year.

The Prakas is known as Prakas No. B7.017.109.P.K on Annual Interest Rate Ceiling Limitation issued on 13th March 2017. This Prakas aims to help reducing poverty by curbing any higher interest rates for Borrowers.

In Article 5 of the Prakas has specified that all New Loans including Restructured Loans and Refinancing which is signed from this 1st April 2017 shall apply the new rule of Annual Interest Rate Ceiling Limitation. The Prakas is expected to be complied otherwise shall be subjected to the penalties as stipulated in Article 52 of Law on Banking and Financial Institutions.

On 22nd January 2017, General Department of Taxation announced (GDT) for a “Tax Amnesty” for the registered taxpayers who failed to pay and those who failed to declare the tax up to three years from the filing date. The amnesty, however, will only exempt the tax penalty for the aforementioned failings. Since the penalties are imposed in series as from 10, 25 or 40 percent which is quite significant, the amnesty tend to encourage the taxpayers to pay theirs owed tax by exempting such penalties. This exception will only officially announce and enter into force by GDT this early April.

In addition to the penalties exemption, there is another sub-decree signed by Prime Minister Hun Sen and dated early of February 2017 to exempt tax on profit for Small-Medium Enterprises (SMEs). This exemption intends to push up the SMEs to voluntarily and formally register their businesses tax in GDT as the condition to be exempted. The period of tax on profit exemption will last for “Two Years” till the end of 2018.

Despite there are some incentive tax policies, it is important to note that the “Tax Code Amendment” through 2017 law on financial management appeared to strengthen the tax system. The amendment was seen to provide a clearer authority for “GDT Auditors” to intensively audit on the distinction between the bank statement and the tax returns. The empowerment of such authority is to prevent taxpayer avoiding on provide a full information. GDT authorities now have power to directly request to the bank to provide the bank statement of the taxpayer being audited.

On December 1, The National Bank of Cambodia “NBC” issued a Prakas requiring all Micro-Finance Institutes (MFIs) to adopt measures to promote the usage of the national currency – Riel.  The implementation of this Prakas shall extend for three years.  Cambodian microfinance institutions are willing to comply with the new regulation which requires them to hold at least 10 percent of their loan portfolio in the currency of the Kingdom of Cambodia.

No. 1112 TRC 

Guideline on Measure to Eliminate Mobile Phone Sim Cards without Identification Document,   

Contradicted to Inter-Ministerial Circular No. 001, dated February 28, 2012 

In the high spirited attempt by competent authorities to protect the national security, safety and public order, The Ministry of Interior (“MoI”) and Ministry of Posts and Telecommunications (“MPTC”) have issued the Inter-Ministerial Circular No. 001, dated February 28, 2012 on Telecommunication Services and Business Management which instructed all operators, branches and resellers to implement a protocol which requires all users of telecommunication services to complete a  telecommunication services form. 

The Ministry of Labour and Vocational Training (“MLVT”) has issued a Prakas determining the minimum wage for workers in the textile, garment and footwear industry for the year 2017.  This Prakas was published on September 29^th 2016 - “Prakas No. 414/16”.  This Prakas was finalized subsequent to the meeting of The Labour Advisory Committee of Ministry of Labour and Vocational Training at the 8^th mandate. This Prakas will become enforceable from January 1^st, 2017.  The range of its enforceability shall extend to the following industries: textile, garment and footwear .

Cambodia is a developing country and all sectors are growing very fast, especially the telecommunications sector.  Cambodian people ages 16 to 35 year olds are particularly interested in using the internet and enjoying new technologies with 3G and 4G services across a range of devices.