For foreign investors considering expanding their business capabilities in Southeast Asia, the Qualified Investment Project (QIP) scheme in Cambodia merits serious consideration.
To secure QIP status, investors are required to register their investment projects with the Council for the Development of Cambodia (CDC). Applications must be submitted to either the CDC or the Provincial/Municipal Investment Subcommittee (PMIS), depending on whether the investment size is above or below $5 million, respectively:
Why should investors care?
The Law on Investment (LOI) provides three distinct “Incentive Menus.” Depending on your project, you could benefit from:
- Income Tax Holiday: Up to 9 years of exemption from Tax on Income.
- Import Duty Exemptions: 0% duties on construction materials, machinery, and production inputs.
- Value Added Tax (VAT) Incentives: Special exemptions for domestic and export-oriented industries.
- Special Depreciation: Options for accelerated asset depreciation.
Is your project eligible?
Eligibility is generally based on the sector and the size of the investment. Common sectors include high-tech industry, agriculture, tourism, and green energy.
Navigating the CDC registration process requires precision—from preparing the Investment Proposal to securing the Final Registration Certificate (FRC).
Let’s discuss how we can help you structure your application for maximum benefits.