Cambodia recently issued income tax exemptions for the textile and garment, footwear and luggage exporters manufacturing goods hit by the European Union’s 20 per cent withdrawal of the country’s ‘Everything but Arms’ (EBA) tariff-free status in February. The cut will last for six months for factories and enterprises that suffered 20-39 per cent loss in income.
They will receive an annual 50 percent tax cut, according to a directive issed by the ministry of economy and finance.Cambodia recently issued income tax exemptions for the textile and garment, footwear and luggage exporters manufacturing goods hit by the European Union's 20 per cent withdrawal of the country's 'Everything but Arms' tariff-free status in February. The cut will last for six months for factories and enterprises that suffered 20-39 per cent loss in income.#
Companies that will be hit by between 40 per cent and 100 per cent by the withdrawal will get a year’s full tax exemption, according to Cambodian media reports.
The EBA tariff-free withdrawal for certain Cambodian companies will come into effect in August.
Cambodia exported garment products, footwear and travel goods valued at $9.32 billion in 2019, a year-on-year increase of 11 per cent, according to a report from the ministry of industry and handicraft, which said there were 1,069 factories last year, of which 823 were garment and textile factories, 114 were travel goods ones and 132 were footwear units.
Fibre2Fashion News Desk (DS)
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
