Cambodia's tax relief measures to mitigate EBA suspension

For the tax year 2020, companies would get income tax exemption based on how the partial suspension of European Union's EBA has affected their business. The level of actual effects to be assessed for income tax exemption shall be determined as a percentage of amount of affected exports out of the amount of total exports.

Income tax exemption would be for six months for factories/enterprises having an effect level from 20 per cent to 39 per cent by granting 50 per cent annual income tax exemption of the total tax amount to be paid.

For factories/enterprises having an effect level from 40 per cent to 100 per cent would have income tax exemption for 1 year, i.e. by granting 100 per cent income tax exemption of the total tax amount to be paid, according to the announcement translated by Garment Manufacturers Association of Cambodia (GMAC).

In order to qualify for the income tax exemptions, textile, garment, footwear, bag and handbag and hat enterprises will have to submit the documents on the amount of actual effects resulting from the suspension of EBA to the tax administration during the submission of annual income tax return.

Fibre2Fashion News Desk (RKS)