|
PDF Visit our Librarry Introduction: Legal update on E-commerce regulations.As of November 2020, the Ministry of Commerce (“MOC”) has issued two new regulations to implement the Law on electronic commerce, which was adopted on November 2019; namely:
The new regulations provide information about the types of business requiring a specific license/permit for the practice of e-commerce, the exemptions, the documents required for such license/permit, the application form, the duration of the license/permit and how to update/amend the information on the license/permit. Cambodia has established a license and a permit: the permit is valid for individual/sole proprietorship and the license is addressed to legal person/foreign subsidiary.
However, a natural person/sole proprietorship shall notify its business registration at the MOC or through the website www.ecommercelicensing.moc.gov.kh (Article 4 of Prakas) by providing the following information: transaction type, business name, electronic mean and payment method.
Intermediary businesses must provide a model contract between the intermediary and the commercial service provider indicating the minimum information required from the user (Article 5 of Prakas).
For a natural person, the applicant shall provide a Business Operation Permit issued by the Capital-Provincial One Window Service and photo 4*6 of the applicant (taken within 3 months). For Sole Proprietorship, the applicant shall include the Certificate of Incorporation with the relevant business objective(s) to conduct business via electronic device(s) (Article 3 of Prakas).
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations. For more details or any question related to e-commerce, please contact our professionals via [email protected]
|
||
Category Archives: Newsletters
Law on Anti-Money Laundering and Combating Terrorism Financing (Jan 2021)
Introduction: Law on Anti-Money Laundering and Combating Terrorism Financing
|
Becoming a member of the Asia/Pacific Group on Money Laundering (“APG“) in June 2004, Cambodia continues to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) system. These efforts mark significant improvements to comply with the internationally accepted anti-money laundering and counter-terrorist financing standards set out by the Financial Action Task Force (“FATF“). These include the FATF Forty Recommendations and FATF Eight Special Recommendations. Therefore, conducting business or professional activities in some sectors in Cambodia also need to abide with the law and regulations on anti-money laundering and counter-terrorist financing. In 2007, the first comprehensive Law on Anti-Money Laundering and Combating Terrorism Financing (the “AML/CTF 2007”) was promulgated. The AML/CTF 2007 has established the Cambodia Financial Intelligence Unit (“CAFIU“) as a watchdog in this sector. CAFIU actively works with the enforcement entities and the reporting entities to ensure the compliance with FATF recommendations. CAFIU has signed Memorandum of Understanding with 14 domestic counterparts and 27 international counterparts. In addition to this, Cambodia also established the National Coordination Committee on Anti-Money-Laundering and Combating the Financing of Terrorism. Additionally, various sub-decrees and regulations were adopted in order to implement the AML/CFT 2007. After some amendments to the AML/CTF 2007, the new AML/CFT law (“AML/CFT 2020“) was promulgated in 2020, the same year as the Law on combatting the financing of weapons of mass destruction proliferation. |
Law on Construction (Nov 2020)
Introduction: Monthly Tax Filing Alert E-filing system
|
The construction sector is one of the sector that has been prioritized by the Royal Government of Cambodia, contributing to restoring and developing the national economy. The Law on Construction (the “Law”) has been established and promulgated on 2nd of November 2019, and consists of 22 chapters with 111 articles. This law aims to establish general principles, building technical regulations, rules and procedures for construction sector management in the Kingdom of Cambodia and applies to the construction sector, except for the types of construction that are governed by separate legal instruments. It also paves the way to create some new regulations, particularly building technical regulations, and the establishment of key factors contributing to the great efforts to manage the construction sector more effectively and efficiently, through notably the National Council for Building Technical Regulations, the Professional Board of the Construction Sector and the Commissions for Construction Dispute Resolution. Since the law contains 22 chapters, this Newsletter will highlights only the key aspects, including but not limited to Key Principles of Construction Work (I), Management of Construction Sector (II), Key Aspects of Management of Construction Work (III), Insurance on the Construction Work (IV), Procedure of Complaint in the Construction Sector (V) and Resolution of Disputes in Construction Sector (VI). |
Monthly Tax Filing Alert E-filing system (Sep 2020)
Introduction: Monthly Tax Filing Alert E-filing system
|
Cambodia has a more flexible tax regime than neighboring countries; however, tax requirements are different in most countries, and it is important that investors comply with the regulations. Cambodia was well-known for the heavy administrative burden and the difficulty of the tax process, including the payment of taxes and contribution and compliance with post filing procedures (VAT refund and tax audit). The World Bank Group, in its Doing Business 2020 guide, ranked Cambodia 138 on 190 countries for the tax process. Investors and the government alike have been looking for a solution to avoid the lengthy process as well as improve the transparency and efficiency. Moreover, due to the COVID-19 situation, it became imperative to avoid the face-to-face meeting with the authorities to pay the monthly liability taxes, thus, the taxpayer can choose to settle thought e-payment. |
Establishing A Company in Myanmar (Sep 2020)
Introduction: Establishing A Company In Myanmar
According to the Directorate of Investment and Company Administrative (“DICA”), Myanmar’s economy has continuously grown at approximately 6 – 8% since 2012.
Foreign individuals or foreign corporation are not allowed to carry out business activities in Myanmar unless they are compliant with the local regulations.
Company registration in Myanmar is in accordance with the Companies Law enacted in 2017 and the Special Company Act enacted in 1950…
Ownership over Immovable Property in Cambodia (Aug 2020)
Introduction: Ownership over Immovable Property in Cambodia
The Constitutional Law in Cambodia only allows natural persons or legal entities with Cambodian nationality to own lands or immovable property. A Cambodian natural person refers to those who are citizens of Cambodian and hold Cambodian nationality. According to Nationality Law of Cambodia, the Cambodian Nationality can be obtained through Citizenship by Birth, Full Adoption, Marriage or Nationalization. On the other hand, a Cambodian Legal Entity (the “Entity”) refers to an enterprise which is registered in Cambodia. A majority shareholder (the “Cambodian Shareholder”) with 51% shares or more must be Cambodian natural person(s) or Cambodian legal entity(s), while 49% shares or less might be hold by a foreigner(s) or foreign entity(s) (the “Foreign Shareholder”).
These share percentages shall be stipulated in the Article of Incorporation. The law does not recognize any private agreement between shareholders which are against this provision. Thus, any change of share, which superseded the Entity’s nationality, shall be informed to the competent Ministries or Institutions…
Double Tax Agreements (Aug 2020)
Introduction: Double Tax Agreements<
A double tax agreement (“DTA”) is a bilateral agreement between two countries in order to avoid the double tax and the prevention of fiscal evasion with respect to taxes on income or on elements of income.
Individuals with a “permanent residence” and with full and unlimited tax liability in either one of the contracting countries may be entitled to exemption/reduction from taxation of income and property according to provisions of the respective agreements, in absence
of which the income would be subject to double taxation.
Tax benefits under DTA for payments can take place in two (2) ways:
• Avoided double tax payments or a reduced tax rate on respective payments;
• Deducted withholding tax rate payments.
The existing taxes covered under DTA’s agreement may include the following, depending on the signatory countries:
• Taxes on income;
• Gains from the alienation of movable or immovable property;
• Taxes on wages or salary;
• Withholding tax on dividends, interest, royalties, technical service.
The main feature of DTAs is that the standard rate of withholding tax can be reduced for all payments to non-resident taxpayers
from 14% to a maximum of 10% of the gross amount in most cases, including withholding tax on dividends, interest, royalties and technical services.
In addition, income of a Contracting State that is a resident of other Contracting States may be taxed in other jurisdictions, but by
virtue of the effectiveness of DTAs, the tax paid is provided as a tax credit in the jurisdiction.
Law on E-Commerce (Aug 2020)
Introduction: Law on E-Commerce
In the past years, Digital Economy, especially E-Commerce and online shopping have been increasing significantly.
The mobile phone subscription increases from 12 million in 2014 to 20.7 million in April 2020 whereas internet subscribers increases from 5 million in 2014 to 15.2 million in April 2020. Digital
payment, sharing economy, gig economy, either in the form of B2B, B2C or C2C as well as digital platforms continue to have rapid growth in Cambodia.
The Royal Government of Cambodia has put the E-Commerce development as a priority in its development strategies agenda such as National Strategic Development Plan 2019-2023 and Rectangular strategy phase IV.
In recent years Myanmar has been hailed as the “final frontier” for investors in Asia. Foreign direct investment has increased significantly since the nation’s return to a civilian government in 2011 after sixty years of military rule and failed economic policies. The United States, which once imposed severe trade restrictions against the country, has since become an enthusiastic trading partner with US companies investing US$612 million in Myanmar since 2012. The Myanmar Investment Commission (MIC) has received around US$ 500 million a month so far for the fiscal year.
However, Cambodia did not have an exhaustive set of law and regulations regarding E-Commerce. The Civil Code provided general rules with regards to contracts and the Criminal Code provided for some rules in relation with fraud.
In this regard, on November 2, 2019, the Law on E-Commerce (the “E-Commerce Law”) has been promulgated, and became effective on May 2, 2020, initiating a profound change in the
Cambodian legal landscape. The purpose of the E-Commerce Law is to manage e-commerce, secure commercial and civil transactions in electronic system and provide confidence to the
public in using electronic communications (Art. 1). Basing on the UNCITRAL Model Law on Electronic Commerce (1996), this Cambodian E-Commerce Law brings important changes to the Cambodian business legal framework by regulating electronic
communications and strengthening consumer protection in this context of Industrial Revolution 4.0.
Berne Convention for the Protection of Literary and Artistic Works (1886) (Jul 2020)
Introduction: The Berne Convention for the Protection of Literary and Artistic Works (1886)
Cambodia has just ratified the Berne Convention (the “Convention”) that protects the authors’ works and their rights. A new regulation or law to implement the Convention will be issued soon.
This Convention is based on three basic principles:
* Principle of national treatment: Any works originated in one of the Contracting States shall receive the same protection in each of the other Contracting States.
* Principle of automatic protection: The protection is not subject to the fulfilment of any formality.
* Principle of independence of protection: Protection is independent of the existence of protection in the country of origin of the work. However, if a Contracting State provides for a term of protection longer than the minimum prescribed by the Convention and the work ceases to be protected in the country of origin, the protection may be refused if it has ceased in the country of origin”.
Investing In Myanmar (Jul 2020)
Introduction: INVESTING IN MYANMAR
Myanmar has a geographically unique and strategic location. The country is situated at the crossroads between the world’s two most populous nations of China and India and reaches deep into Southeast Asia where it also shares borders with Thailand, Laos and Bangladesh. A natural hub with a low population density and a rich supply of arable lands and natural resources, Myanmar has the potential to become the fastest growing economy in the region and to once again take up its role as a Southeast Asian trading center.
In recent years Myanmar has been hailed as the “final frontier” for investors in Asia. Foreign direct investment has increased significantly since the nation’s return to a civilian government in 2011 after sixty years of military rule and failed economic policies. The United States, which once imposed severe trade restrictions against the country, has since become an enthusiastic trading partner with US companies investing US$612 million in Myanmar since 2012. The Myanmar Investment Commission (MIC) has received around US$ 500 million a month so far for the fiscal year.
In order to maintain an attractive investment climate the government has embarked on an ambitious series of reforms and incentives; and Myanmar has become an active member of international and regional investment organizations.
