Cambodia Investment Review
DFDL Cambodia has released its 2026 Annual Compliance update, outlining the key legal, tax, accounting, corporate, and labour obligations that enterprises operating in Cambodia should address in the year ahead. While requirements vary depending on business size and structure, the update highlights the importance of early planning as regulatory scrutiny continues to increase.
Key compliance deadlines at a glance
• 31 March 2026: Filing deadline for the 2025 Tax on Income return and payment of 2026 Patent Tax
• 20 April 2026: Submission deadline for non-audited 2025 financial statements to ACAR
• 20 July 2026: Submission deadline for audited 2025 financial statements to ACAR
• Within 3 months of anniversary date: Filing of Annual Declaration of Commercial Enterprise with the Ministry of Commerce
• By 31 March 2026: Renewal of foreign employee work permits for 2026
Tax on Income and Patent Tax obligations
Cambodia’s standard tax year runs from 1 January to 31 December. Self-assessment taxpayers must file their 2025 Tax on Income return electronically with the General Department of Taxation by 31 March 2026, or within three months of year-end for enterprises using a non-standard tax year.
Companies with local branches are required to submit consolidated returns, while businesses with both Qualified Investment Project and non-QIP activities must file in line with existing Ministry of Economy and Finance regulations. Annual filings must include financial statements and disclosure of related-party transactions.
Patent Tax registration and payment for 2026 must also be completed by 31 March 2026. Fees range from USD 100 for small taxpayers to USD 1,250 for large taxpayers with annual turnover exceeding USD 2.5 million.
Transfer pricing compliance now a priority
Transfer pricing requirements have become a central compliance focus following the strengthening of Cambodia’s framework from the 2025 tax year onward. Enterprises engaged in related-party transactions must comply with the arm’s length principle and apply an appropriate pricing methodology supported by robust documentation.
Related-party transactions must be disclosed in the annual Tax on Income return, and most taxpayers are required to prepare and retain Transfer Pricing Documentation for up to 10 years. The tax authorities now have expanded powers to impose both primary and secondary transfer pricing adjustments, increasing potential exposure for non-compliance.
Financial reporting and accounting obligations
Enterprises are required to submit financial statements to the Accounting and Auditing Regulator. Companies subject to statutory audit must file their audited financial statements within six months and 20 days after year-end, typically by 20 July 2026. Non-audited entities must submit by 20 April 2026.
Penalties for late or non-submission can range from approximately USD 200 to USD 5,000. Businesses are also required to maintain proper accounting records and apply the appropriate Cambodian financial reporting standards.
Corporate, labour, and employment compliance
Companies must submit their Annual Declaration of Commercial Enterprise through the Ministry of Commerce’s online system within three months of their registration anniversary date. All limited liability companies are required to appoint a Cambodia-resident corporate secretary and maintain statutory corporate records.
Labour compliance remains a major enforcement area in 2026. Enterprises employing foreign nationals must ensure approved foreign employee quotas, valid work permits, National Social Security Fund registration, and completion of semi-annual self-declared labour inspections. Larger employers also face additional obligations relating to apprenticeship training, disability employment quotas, and seniority pay.
Increased enforcement and compliance risk
DFDL notes that enforcement activity has increased across tax, labour, and corporate compliance, with stricter audits and higher fines now more common. Enterprises are encouraged to review their compliance position early in 2026 and seek professional advice where obligations are unclear, particularly in higher-risk areas such as transfer pricing and foreign employment.
