Tax exemptions aim to boost Siem Reap tourism recovery


National and international tourists on Pub Street in Siem Reap province on October 1. - Photo: Tourism ministry

PHNOM PENH: The extension of certain tax exemptions for tourism enterprises in Siem Reap province is seen as a cost reduction and a contribution to the gradual recovery of the province's tourism sector, albeit to varying degrees, according to analysts.

The Ministry of Economy and Finance issued a proclamation providing tax incentives for tourism enterprises in Siem Reap, specifically for the years 2024 and 2025. This was announced in a statement dated October 10 and recently made public.

Eligible enterprises, including hotels, guesthouses, restaurants and travel agencies, will be exempt from paying monthly taxes of all types until the end of June 2025. However, these exemptions do not apply to value-added tax (VAT) and accommodation tax.

Another exemption is the annual income tax for the year 2024. Enterprises that have already paid their income tax will be allowed a tax credit to offset their 2025 annual income tax.

Additionally, these enterprises will not be subject to audits for fiscal year 2024.

The ministry explained that the goal of providing these incentives is to aid the recovery of the province’s tourism sector. However, the ministry requires all medium and large taxpayers to electronically submit monthly tax declarations and to file their annual income tax returns through the Tol E-filing platform.

Anheng Sokpheak, president of the Cambodia Chinese Tour Guide Association (CCTGA), stated that the announcement of these exemptions is "good news" and will help reduce the burden on enterprises, providing opportunities for the recovery of the country’s tourism industry.

"I believe the government should continue supporting the tourism sector to help it develop even further,” he said.

Chhort Bunthang, a cultural relations, tourism and education research officer at the Royal Academy of Cambodia, agreed that, regardless of the scale, the government's encouragement through tax exemptions will ease the burden on these enterprises.

"We all know that despite the efforts of the private sector and the government, the tourism sector has not yet recovered to the desired level, and these enterprises are still affected. If the government continues to impose the same taxes as before, it would certainly impact the tourism industry,” he said.

"I believe these tax exemptions, even if not substantial, still play a role because the government is doing what it can. This is in addition to efforts to attract tourists, formulate policies, open flight routes and introduce measures to draw international visitors," he added.

According to Angkor Enterprise (AE), which manages ticket sales for the Angkor Archaeological Park, Koh Ker Temple and the Chong Khneas floating village, a total of 699,850 international travellers purchased tickets to visit these sites in the first nine months of 2024, reflecting an increase of nearly 30 per cent compared to the same period last year.

As of October 18, the number of tickets purchased by international visitors rose to 738,770. Total revenue for the nine-month period reached US$32.523 million, also marking a year-on-year increase of over 30 per cent. - The Phnom Penh Post/ANN

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Cambodia , tax exemptions , aim , boost , Siem Reap , tourism , recovery

   

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