Incentives and Schemes

FAQs

Resource Center

Select Language

Home

About Us

Investment

Industries

Business Setup

Media / News

FAQs

Resource Center

Select Language

FAQs

Resource Center

Select Language

Welcome to Koh Kong Province

Welcome to Koh Kong Province

Welcome to Koh Kong Province

Home

Koh Kong Province

Incentives and schemes

Share on

Incentives and Schemes

Up to 15 Years

Of income Tax incentive

100%

Foreign Ownership

0 Control

On capital movements

2.27 Billion

RCEP markets including 10 ASEAN countries, China, Japan, South Korea, Australia and New Zealand

Bilateral FTAs

China-Cambodia Free Trade Agreement (CCFTA) and Cambodia-Korea Free Trade Agreement (CKFTA)

Up to 15 Years Of income Tax incentive

According to the Cambodia Investment Guidebook, investment projects in Koh Kong province may benefit from income tax exemptions of up to 15 years. These incentives apply based on project type, location, and sector priority. The goal is to stimulate private sector growth, enhance regional competitiveness, and attract long-term investors committed to sustainable development in Cambodia’s emerging coastal economic zones.

100% Foreign Ownership

The Cambodia Investment Guidebook affirms that foreign investors are allowed to own 100% of their investment projects, with no local partnership requirements. This policy applies equally to projects in Koh Kong province, offering full ownership rights across sectors except for certain land ownership restrictions. This openness enhances investor confidence, supports ease of doing business, and positions the coastal regions as attractive destinations for fully foreign-owned enterprises seeking long-term growth opportunities.

0 Control on capital movements

According to the Cambodia Investment Guidebook, investors benefit from full freedom in capital movements, with no restrictions on the repatriation of profits, dividends, loan repayments, or capital. This open policy is designed to attract foreign investment by ensuring financial flexibility and legal assurance. For Koh Kong province, this liberal approach supports investment confidence and enhances the competitiveness of the region as a destination for strategic and long-term economic development.

2.27 Billion RCEP markets including 10 ASEAN countries, China, Japan, South Korea, Australia and New Zealand

Cambodia’s strategic location within the 2.27 billion RCEP market (30% of global population) positions it as a powerful gateway for export-driven industries. Through duty reductions and simplified trade rules with ASEAN, China, Japan, South Korea, Australia, and New Zealand, investors gain seamless access to the world’s largest trade bloc. For zones like Preah Sihanouk, this creates a compelling opportunity to build manufacturing, agro-processing, and logistics platforms that serve fast-growing Asia-Pacific demand.

Bilateral FTAs: CCFTA and CKFTA

The Cambodia–China Free Trade Agreement (CCFTA) and Cambodia–Korea Free Trade Agreement (CKFTA) are key bilateral FTAs boosting Cambodia’s trade and investment prospects. The CCFTA offers duty-free access for over 90% of exports to China, supporting agriculture and light industry. The CKFTA opens Korean markets to Cambodian goods while encouraging industrial upgrade investment. Both agreements enhance Cambodia’s integration into Asian supply chains.

According to Article 24 of the Law on Investment of the Kingdom of Cambodia, 19 sectors and activities are entitled to investment incentives:

High-tech industries involving innovation or research and development;
Innovative or highly competitive new industries or manufacturing with high added value;
Industries supplying regional and global production chains;
Industries supporting agriculture, tourism, manufacturing, regional and global production chains and supply chains;
Electrical and electronic industries;
Spare parts, assembly, and installation industries;
Mechanical and machinery industries;
Agriculture, agro-industry, agro-processing industry, and food processing industries serving the domestic market or export;
Small and medium-sized enterprises in priority sectors and small and medium-sized enterprise cluster development, industrial parks, and science, technology, and innovation parks;
Tourism and tourism-related activities;
Special economic zones;
Digital industries;
Education, vocational training, and productivity promotion;
Health;
Physical infrastructure;
Logistics;
Environmental management and protection, biodiversity conservation, and the circular economy;
Green energy, technology contributing to climate change adaptation and mitigation;
Other sectors and investment activities not listed by this Law deemed by the Royal Government of Cambodia to have the potential for socio-economic development.

According to Article 24 of the Law on Investment of the Kingdom of Cambodia, 19 sectors and activities are entitled to investment incentives:

High-tech industries involving innovation or research and development;
Innovative or highly competitive new industries or manufacturing with high added value;
Industries supplying regional and global production chains;
Industries supporting agriculture, tourism, manufacturing, regional and global production chains and supply chains;
Electrical and electronic industries;
Spare parts, assembly, and installation industries;
Mechanical and machinery industries;
Agriculture, agro-industry, agro-processing industry, and food processing industries serving the domestic market or export;
Small and medium-sized enterprises in priority sectors and small and medium-sized enterprise cluster development, industrial parks, and science, technology, and innovation parks;
Tourism and tourism-related activities;
Special economic zones;
Digital industries;
Education, vocational training, and productivity promotion;
Health;
Physical infrastructure;
Logistics;
Environmental management and protection, biodiversity conservation, and the circular economy;
Green energy, technology contributing to climate change adaptation and mitigation;
Other sectors and investment activities not listed by this Law deemed by the Royal Government of Cambodia to have the potential for socio-economic development.

Basic Incentives

Investment activities registered as QIP are entitled to choose basic incentives under the following two options:

1- Option 1, will receive the following incentives:

A- Tax on Income exemption starting from the time of receipt of first revenue from the business activity during a specific period according to the Investment Activity Category that is stated in the list of Investment Activity in Annex 2 of the Sub-Decree as follows:

9 (nine) years for Group 1;
6 (six) years for Group 2;
3 (three) years for Group 3.

B- Entitlement to the incentive to pay Tax on Income at a progressive rate proportional to the total amount of tax due after the expiration of the Tax on Income exemption period:

25 (twenty-five) percent for the first 2 (two) years;
50 (fifty) percent for the next 2 (two) years; and
75 (seventy) percent for the last 2 (two) years;

C- An exemption for the Prepayment of Tax on Income during a specific period according to the Investment Activity Category as stated in the list of Investment Activity of Annex 2 of the Sub-Decree as follows:

9 (nine) years for Group 1;
6 (six) years for Group 2;
3 (three) years for Group 3.

D- A Minimum Tax exemption provided that an independent audit report has been obtained.

E- An export tax exemption, unless otherwise stated in other laws and regulations.

2- Option 2, will receive the following incentives:

A- Entitlement to deduct capital expenditure through special depreciation as stated in the applicable provisions on taxation.

B- Entitlement to deduct up to 200 (two hundred) percent of certain expenses within a specific period according to the Investment Activity Category as stated in the list of Investment Activity in Annex 2 of the Sub-Decree as follows:

9 (nine) years for Group 1;
6 (six) years for Group 2;
3 (three) years for Group 3.

– Certain expenses include:

Expenses for training on specific skills for Cambodian employees to
substitute foreign employees;
Expenses for using accounting books via an information technology system;
Expenses for providing scholarships to Cambodian employees to study certain skills abroad;
Expenses for the study, research and development, and hiring of foreign experts to provide training on new technologies, Industry 4.0, including artificial intelligence and robotics, or the arrangement of big data storage.

C- An exemption for Prepayment of Tax on Income for a specific period according to the Investment Activity Category as stated in the list of Investment Activity in Annex 2 of the Sub-Decree as follows:

9 (nine) years for Group 1;
6 (six) years for Group 2;
3 (three) years for Group 3.

D- A minimum tax exemption provided that an independent audit report has been obtained.

E- An export tax exemption, unless otherwise stated in the other laws and regulations.

In addition to the incentives of the 2 (two) options above:

A QIP that has the right to import Construction Material, Construction Equipment, and Production Equipment to serve its production line will have customs duty, special tax, and value-added tax exemption,
In addition to Item 1 of this Paragraph, an Export QIP or Supporting Industry Export QIP that has the right to import the Production Inputs to serve its production line will have customs duty, special tax, and value-added tax exemption. In the case that Production Inputs are not used to supply the production line, the Export QIP or the Supporting Industry Export QIP must pay customs duty, special tax, and value-added tax in accordance with the applicable laws and regulations.
Except otherwise provided in the law, any Investment Activity covered by Annex 3 of the Sub-Decree shall be granted with incentives to import the Construction Material, the Construction Equipment, and the Production Equipment for its production line and the customs duty, special tax, and value-added tax exemption, but shall not be granted with the tax incentives after obtaining a Registration Certificate certifying a QIP status as stated in the Law on Investment of the Kingdom Cambodia.
The Domestically Oriented QIP with the Investment Activity covered under Annex 4 of the Sub-Decree that has the right to import the Production Inputs for its production line will have customs duty, special tax, and value-added tax exemption.
The Domestically Oriented QIP that can directly export or supply the Production Inputs to the Export QIP of any part of the products made from the imported Production Inputs and having fulfilled the tax obligations will be refunded or reserved for the payment of customs duty, special tax and value-added tax on goods to be imported at a later date according to the applicable laws, regulations, and procedures at the request of the Investor.

Investment activities registered as QIP are entitled to choose basic incentives under the following two options:

1- Option 1, will receive the following incentives:

9 (nine) years for Group 1;
6 (six) years for Group 2;
3 (three) years for Group 3.

B- Entitlement to the incentive to pay Tax on Income at a progressive rate proportional to the total amount of tax due after the expiration of the Tax on Income exemption period:

25 (twenty-five) percent for the first 2 (two) years;
50 (fifty) percent for the next 2 (two) years; and
75 (seventy) percent for the last 2 (two) years;

9 (nine) years for Group 1;
6 (six) years for Group 2;
3 (three) years for Group 3.

D- A Minimum Tax exemption provided that an independent audit report has been obtained.

E- An export tax exemption, unless otherwise stated in other laws and regulations.

2- Option 2, will receive the following incentives:

A- Entitlement to deduct capital expenditure through special depreciation as stated in the applicable provisions on taxation.

9 (nine) years for Group 1;
6 (six) years for Group 2;
3 (three) years for Group 3.

– Certain expenses include:

Expenses for training on specific skills for Cambodian employees to
substitute foreign employees;
Expenses for using accounting books via an information technology system;
Expenses for providing scholarships to Cambodian employees to study certain skills abroad;
Expenses for the study, research and development, and hiring of foreign experts to provide training on new technologies, Industry 4.0, including artificial intelligence and robotics, or the arrangement of big data storage.

9 (nine) years for Group 1;
6 (six) years for Group 2;
3 (three) years for Group 3.

D- A minimum tax exemption provided that an independent audit report has been obtained.

E- An export tax exemption, unless otherwise stated in the other laws and regulations.

In addition to the incentives of the 2 (two) options above:

A QIP that has the right to import Construction Material, Construction Equipment, and Production Equipment to serve its production line will have customs duty, special tax, and value-added tax exemption,
In addition to Item 1 of this Paragraph, an Export QIP or Supporting Industry Export QIP that has the right to import the Production Inputs to serve its production line will have customs duty, special tax, and value-added tax exemption. In the case that Production Inputs are not used to supply the production line, the Export QIP or the Supporting Industry Export QIP must pay customs duty, special tax, and value-added tax in accordance with the applicable laws and regulations.
Except otherwise provided in the law, any Investment Activity covered by Annex 3 of the Sub-Decree shall be granted with incentives to import the Construction Material, the Construction Equipment, and the Production Equipment for its production line and the customs duty, special tax, and value-added tax exemption, but shall not be granted with the tax incentives after obtaining a Registration Certificate certifying a QIP status as stated in the Law on Investment of the Kingdom Cambodia.
The Domestically Oriented QIP with the Investment Activity covered under Annex 4 of the Sub-Decree that has the right to import the Production Inputs for its production line will have customs duty, special tax, and value-added tax exemption.
The Domestically Oriented QIP that can directly export or supply the Production Inputs to the Export QIP of any part of the products made from the imported Production Inputs and having fulfilled the tax obligations will be refunded or reserved for the payment of customs duty, special tax and value-added tax on goods to be imported at a later date according to the applicable laws, regulations, and procedures at the request of the Investor.

Additional Incentives

In addition to the basic, a QIP shall

receive the following additional incentives:

A QIP is exempted from value-added tax on the purchase of locally produced Production Inputs for the implementation of the QIP. This value-added tax exemption shall apply at the rate of 0 (zero) percent.
A QIP receives a deductible expense at the rate of 150 (one hundred and fifty) percent from the tax base for any of the following activities:

A. Research, development, and innovation.
B. Human resources development through the provision of vocational training and skills to Cambodian workers/employees.
C. Construction of accommodation, canteens, free of charge, or affordable food courts, nurseries, and other facilities for workers/employees.
D. Modernizing machinery to serve the production line.
E. Offering welfare promotion to Cambodian workers/ employees, such as providing comfortable means of transportation for workers to travel from their accommodation to the factory, accommodation, canteens, free of charge or affordable food courts, nurseries, and other facilities.
F. Investment or construction of infrastructure for all types of waste treatment, including solid waste, hazardous waste, liquid waste, and smoke.

3- A QIP that has the right to import the Construction Material and the Construction Equipment for the construction of accommodation, nurseries, first aid rooms, canteens, free of charge or affordable food court only for the workers of its Investment Project located at the premises of the Investment Project, will have customs duty, special tax, and value-added tax exemption

In addition to the basic, a QIP shall

receive the following additional incentives:

A QIP is exempted from value-added tax on the purchase of locally produced Production Inputs for the implementation of the QIP. This value-added tax exemption shall apply at the rate of 0 (zero) percent.
A QIP receives a deductible expense at the rate of 150 (one hundred and fifty) percent from the tax base for any of the following activities:

Additional Incentives for Expanded- Qualified Investment Project (EQIP)

The incentives shall be granted to the EQIP in accordance with the following:

A QIP with the request to expand the Investment Activity shall be entitled to receive an incentive on Tax on Income exemption period if the expanded project takes any of the following forms:

A. Expansion of the existing production.
B. Expansion through product line diversification within the same line.
C. Expansion through the installation of new and modern technologies that increase productivity or protect the environment.

If the project expansion takes any other form, a permit from the Royal Government must be obtained.

From the time of QIP expansion, the EQIP shall be entitled to obtain the Tax on Income exemption according to the original Investment Activity within a specific period according to the Investment Activity Category as specified in the list of Investment Activities of Annex 2 of the Sub-Decree as follows:

A. 9 (nine) years for Group 1;
B. 6 (six) years for Group 2;
C. 3 (three) years for Group 3.

3. The part of revenue to be exempted from tax for an EQIP is equal to the total taxable income multiplied by the rate of EQIP Capital. The rate of EQIP Capital is equal to the EQIP Capital divided by the total Investment Capital. The total Investment Capital is equal to the Investment Capital of the initially registered QIP plus the EQIP Capital to be granted with the incentive. The calculation formula is as follows:

I TOIE = TTI x (EIC/TIC)

I TOIE = Income with Tax on Income Exemption

TTI = Total Taxable Income

EIC = EQIP Capital to be granted with Incentive

TIC = Total Investment Capital (IIC + EIC)

IIC = Initial Investment Capital of QIP

Prepayment of the Tax on Income for EQIP shall be exempted based on the proportion of the rate of EQIP Capital within the Tax on Income exemption period on the EQIP.
EQIP is entitled to a minimum tax exemption provided that an independent audit report has been obtained.

The incentives shall be granted to the EQIP in accordance with the following:

A QIP with the request to expand the Investment Activity shall be entitled to receive an incentive on Tax on Income exemption period if the expanded project takes any of the following forms:

If the project expansion takes any other form, a permit from the Royal Government must be obtained.

From the time of QIP expansion, the EQIP shall be entitled to obtain the Tax on Income exemption according to the original Investment Activity within a specific period according to the Investment Activity Category as specified in the list of Investment Activities of Annex 2 of the Sub-Decree as follows:

A. 9 (nine) years for Group 1;
B. 6 (six) years for Group 2;
C. 3 (three) years for Group 3.

I TOIE = TTI x (EIC/TIC)

I TOIE = Income with Tax on Income Exemption

TTI = Total Taxable Income

EIC = EQIP Capital to be granted with Incentive

TIC = Total Investment Capital (IIC + EIC)

IIC = Initial Investment Capital of QIP

Prepayment of the Tax on Income for EQIP shall be exempted based on the proportion of the rate of EQIP Capital within the Tax on Income exemption period on the EQIP.
EQIP is entitled to a minimum tax exemption provided that an independent audit report has been obtained.

Special Incentives:

Any specific sector and investment activities having high potential to contribute to national economic development may receive specific special incentives to be set out in the Law on Financial Management.

Overview

Development Goals

Priority Industries

Key Priority Projects

Incentives and Schemes

Explore more