In accordance with Article 25 of the Tax Law promulgated by Royal Decree No. NS/RKM/0523/004 dated May 16, 2023 and Article 44 of Prakas No. 578, Royal Decree No. 19, 2024, on Income Tax, to facilitate the withholding tax mechanism among taxpayers under the self-declaration regime and improve the business environment in the Kingdom of Cambodia, the Ministry of Economy and Finance hereby makes the following recommendations:

1- Exemption from withholding tax obligations on royalties and interest on all royalties and interest payments among taxpayers under the same self-declaration regime.

2- Enterprises that are taxpayers under the self-declaration regime and receive income must record it as taxable income and declare income tax in accordance with the laws and legal regulations on taxation in force.

3- Exemption from the obligation to withhold withholding tax as in point 1 above, unless the amount is recorded in the invoice in accordance with the rules for the use of invoices in force, which has been properly issued by the other self-declared taxpayer.