Tax Incentives for the Agricultural Sector in Cambodia

November 26, 2025

On November 19, 2025, the Ministry of Economy and Finance introduced tax incentives to support entities operating in the agricultural sector. They aim to promote the cultivation, production, domestic supply, and export of key agricultural products, including paddy rice, corn, beans, pepper, cassava, cashew nuts, rubber, Pailin ginger, mangoes, bananas, animal husbandry, aquaculture, and domestic palm oil used for animal feed production.

The tax incentives will be in effect from January 1, 2026 until December 31, 2027.

We provide below an overview of the key features of the tax incentives.

Value Added Tax (“VAT”) treatment

Entities in the agricultural sector:

• Are not required to charge VAT on their domestic supplies; rather, the VAT on these supplies is considered a burden of the State.
  • Are allowed to claim a credit for input VAT related to their supplies.

Additional tax benefits

• Suspension of minimum tax payments.
  • Suspension of dividend tax obligations.
  • Exemption from withholding tax obligations on payments for services from persons not in the self-declaration regime.

Eligibility requirements

To qualify for the tax incentives, entities must meet the following conditions:

• Obtain a state-paid VAT certificate from the General Department of Taxation.
  • Provide a list of suppliers (a list of customers) and customers with their monthly VAT declarations.
  • Maintain proper accounting records in accordance with the law.
  • Submit their monthly and annual tax declarations on time in the prescribed form.

Non-compliance with these conditions will result in withdrawal of the tax incentives.