SMEs say tax exemption requirements too high

Small and Medium-sized Enterprises (SMEs) find it difficult to meet the requirements to apply for tax exemption, according to Federation of Association for Small and Medium Enterprises of Cambodia (FASMEC)’s president Te Taingpor. The General Department of Taxation (GDT) announced in December that all SMEs must have legal certification demonstrating their business statuses and must submit business, financial and employee plans as well as commercial and labor agreements and their business locations to apply for tax exemption. Taingpor said event submitting business and financial plans are difficult for SMEs, and hence, FASMEC is now working on a project to ask the government to facilitate the procedures for the SMEs. According to the sub-decree on tax incentive for SMEs, SMEs intending to receive a five-year tax exemption must use at least 60% domestic raw materials, increase the number of employees by at least 20% or be located in SME districts. Meanwhile, Cambodia Women Entrepreneurs Association president Eng Lykuong said the requirements would be beneficial in the long-term despite how strenuous they may currently be for SMEs. (Source: Phnom Penh Post)