Cambodia business compliance essentials for 2025 year-end and 2026.
As the year winds down, companies operating in Cambodia need to take care of several year-end compliance tasks and get ready for their 2026 obligations. Here’s a rundown of the key tax, regulatory, and labour items to sort out before the year closes.
Tax on Income returns for 2025
Entities classified as large or medium taxpayers are generally subject to a 20% Tax on Income (TOI) based on net taxable profit. This figure is determined by adjusting accounting profit to account for expenses that may not be allowed or are limited, along with taxable income recognised in the current year but not included in annual accounting profit.
When preparing the 2025 TOI return, businesses should review several key areas. Unearned or deferred income, tax expenses paid on behalf of suppliers or employees, and differences between accounting depreciation and tax depreciation all require careful consideration. Additionally, salary and related party payables, provision expenses, interest expenses and the utilisation of tax losses or tax credits need appropriate treatment.
The TOI return for 2025 is due by 31 March 2026, with the corresponding tax payment also due at that time. The General Department of Taxation imposes penalties and interest for late submissions and delayed payments. Filing by the deadline helps businesses avoid these additional costs.
Patent tax for 2026
The Patent Tax is an annual business registration fee due by 31 March each year. For 2026, the deadline falls on 31 March 2026. Businesses engaged in multiple types of activities face a separate patent tax payment requirement for each activity.
| Taxpayer classification | Patent tax amount (KHR) | Approx. amount (USD) | Notes |
|---|---|---|---|
| Small taxpayers | 400,000 | 100 | — |
| Medium taxpayers | 1,200,000 | 300 | — |
| Large taxpayers | 3,000,000 | 750 | Applies when annual turnover is ≤ KHR 10,000,000 |
| Large taxpayers | 5,000,000 | 1,250 | Applies when annual turnover exceeds KHR 10,000,000 |
Completing the payment early in 2026 provides a buffer against missing the deadline.
Submission of 2025 financial statements to the Accounting and Auditing Regulator
Entities excluding small taxpayers that are not required to undergo an independent financial audit submit their annual financial statements to the Accounting and Auditing Regulator (ACAR) before 15 April 2026. However, since 12 and 13 April fall on weekends and 14 to 16 April are public holidays (Khmer New Year), the practical deadline becomes 11 April 2026. The deadline may be updated upon notification from ACAR.
For entities that do require an independent financial audit, annual audited financial statements are due to ACAR by 15 July 2026.
Annual Declaration of Commercial Enterprise
The Annual Declaration of Commercial Enterprise (ADCE) is a compulsory requirement for all commercial entities registered in Cambodia. The Ministry of Commerce (MOC) relies on this declaration to maintain accurate and current information about legal entities operating in the country.
The deadline for filing the ADCE online is within 90 days after the completion of the 12th month following the enterprise’s incorporation date. This schedule ensures that the MOC receives updated information regularly, facilitating effective monitoring and analysis of business activities. Non-compliance results in a penalty of KHR 2 million (approximately USD 500) for each year the declaration is not filed.
Since 2024, the MOC system no longer supports ADCE filings through companies’ MOC accounts. These filings are now submitted exclusively via the Information Technology System (CamDX) using the company’s CamDX account at www.registrationservices.gov.kh.
Although the online system provides regular reminders of filing due dates, entities registered with the MOC should remain vigilant and file their ADCEs on time. Companies should also ensure that the email address registered in the MOC system is correct, active and able to receive notifications, as monthly reminder emails are sent to that address.
Certificate of compliance for Qualified Investment Projects
Entities classified as Qualified Investment Projects (QIPs) typically receive duty-free import privileges and tax holiday incentives. To maintain these benefits, a QIP adheres to all applicable laws and regulations. Non-compliance may result in the loss of QIP status.
The annual Certificate of Compliance (COC) is an official document issued by the Council for the Development of Cambodia (CDC) or the Municipal-Provincial Investment Sub-Committee (MPISC) in the year following the compliance period. The certificate confirms that a QIP has fulfilled all legal and regulatory requirements for the previous year, ensuring continued eligibility for investment incentives such as tax holidays and duty exemptions.
In practice, when instances of non-compliance occur, the CDC or MPISC usually allows the QIP to address the issues and complete any outstanding requirements, such as submitting additional documents or requesting missing COCs from previous years, rather than immediately revoking QIP status. Despite this flexibility, QIPs should obtain their COC within the designated timeline to mitigate the risk of losing their status.
Labour compliance obligations for employers
The Ministry of Labour and Vocational Training (MLVT) has introduced two online systems to streamline labour-related services: the Labour Automated Centralised Management System (LACMS) and the Foreign Workers Centralised Management System (FWCMS).
After registering with MLVT, employers comply with Cambodian Labour Law requirements for both local and foreign employees. This includes timely notifications to MLVT regarding changes in company particulars, as well as staff employment and termination.
Key labour compliance deadlines
| Requirement | Deadline |
|---|---|
| Annual work permits | By 31 March each year |
| Workbook application for local employees (required for each Cambodian employee) | Within 15 days of hiring |
| Staff representative registration (mandatory for companies with eight or more staff, renewed every two years) | Within three months of reaching eight staff members |
| Internal work rules (required for companies with eight or more staff) | Within three months of reaching eight staff members |
| Foreign employee quota | Before 30 November for the following year |
| Declaration of staff movement (notify MLVT when employees are hired or leave) | Within 15 days of change |
| Biannual online self-declaration of labour inspection | 30 June and 31 December each year |
Foreign nationals may comprise a maximum of 10% of an employer’s total local workforce. However, employers can request an additional quota beyond this limit by demonstrating a shortage of qualified Cambodian workers or employees for specific roles.
Once the MLVT approves the quota, the foreign employee can apply for a work permit through their employer. This work permit is valid until the end of the calendar year and requires renewal by 31 March of the following year.
Do you need help with staying compliant?
Acclime provides comprehensive compliance support for businesses operating in Cambodia. Our team assists with tax return preparation, regulatory filings, labour compliance and all year-end obligations to ensure your business meets legal requirements. Contact Acclime to learn more about our Cambodia compliance services.
