Cambodia e-Business Registration Exemptions

The Cambodian Ministry of Commerce confirmed in July 2021 that six types of e-commerce businesses are exempt from registration requirements. The Cambodian Government has launched a number of digital economic initiatives, online platforms and regulations as well as its official digital plan for the Kingdoms’ economic development. The broader Cambodian Ministry of Commerce’s E-commerce strategy policy was released in June 2021 following the updates to the eCommerce law passed in 2019 and adopted in 2020. The digital service tax (VAT) on international tech companies – known as Sub-decree 65 was also introduced as e-Businesses really took off during the global pandemic. We previously outlined the sub-decree on “regulating licences for types of electronic business and exemption” which required an electronic business certificate to be issued to individuals, private enterprises that operate electronic businesses in Cambodia and some exemptions were announced previously.

Which Cambodia e-Businesses are exempt?

Now Ministry of Commerce spokesman Pen Sovicheat has said that six e-commerce businesses are exempt from the registration requirements:

1. Advertisers that do not list prices of, or directly sell goods to services to consumers, and are not subject to a contract.
2. Information providers that are involved in interactions such as negotiations that do not take deposits for their services or directly create sales contracts, such as booking services.
3. Operations of individuals or sole proprietorships with revenue from the sale of goods or services below the lower income threshold of the lowest tax bracket.
4. Family-owned, temporary or seasonal businesses, such as those in agriculture.
5. Vendors of paintings or other artworks.
6. Providers of online private tutoring, training, workshops or similar education services.

By the time of publishing, the ministry had yet to receive a single e-business registration. Pen Sovicheat put this down to a lack of awareness. The E-commerce business licence for Cambodians is valid for two years and can be renewed. For foreign companies, enterprises and individuals, the E-commerce business license is valid for three years and can be renewed.

Cambodia Digital Economy Growth

Cambodian tech and digital businesses produced $470 million in revenue in 2019, the Asian Development Bank reported in June 2021. The breakdown was represented by the Metro Manila-based "Asia Economic Integration Report 2021: Making Digital Platforms Work For Asia and the Pacific" as:

• e-commerce accounted: 27.6 per cent
• e-services: 7.8 per cent
• Digital media: 10.2 per cent
• Advertising technology: 12.7 per cent
• Transportation: 3.8 per cent
• Online travel: 37.9 per cent

The Cambodian Single Portal online business registration platform celebrated its one year anniversary in mid-2021 and a second phase is being planned for rollout in August 2021.