Key Aspects of Cambodia's New Sub-Decree on National Internet Gateway
On 16 February 2021, the Royal Government of Cambodia issued Sub-Decree No. 23 on the Establishment of National Internet Gateway (“Sub-Decree“). The Sub-Decree aims to facilitate and manage internet connections for the enhancement of effective and efficient national revenue collection, protection of national security, and assurance of social order, culture, and tradition.
Sub-Decree contains 11 chapters and 20 articles. The National Internet Gateway (“NIG“) includes the Domestic Internet Exchange (“DIX“) and the International Internet Gateway (“IIG“). The operator of the NIG (“NIG Operator“) shall apply for and obtain a licence from the Telecommunication Regulator of Cambodia (“TRC“). Both the DIX and IIG must be operated in Phnom Penh, Sihanoukville Province, Poi Pet City, and Bavet City, and other areas to be identified by the Ministry of Post and Telecommunications (“MPTC“). Any approval/permit on the cross-border physical connection issued prior to 16 February 2021, which is the effective date of the Sub-Decree, shall be abrogated after 12 months from such effective date of the Sub-Decree, except the rights granted under the Licence of the Operation of International Telecommunications Gateway and the Licence of Submarine Cable Landing Station Operation.
The Sub-Decree also requires NIG Operators to cooperate with relevant authorities in ensuring that national revenue collection, safety, public order, dignity, culture, tradition and societal customs are maintained. To this end, NIG Operators are required to monitor traffic data consistently and submit traffic data reports to MPTC and TRC on a regular basis.
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SERC Issues Prakas on Reporting Obligations and Request for Approval of Central Counterparties and Derivatives Brokers
On 18 January 2021, the Securities and Exchange Regulator of Cambodia (“SERC“), previously known as the Securities and Exchange Commission of Cambodia, issued a new Prakas No. 001/21 SECC/P on the Obligations to Provide Reports, Notify, and Request for Approval of Central Counterparties and Derivatives Brokers (“New Prakas“).
The New Prakas sets out the following obligations of central counterparties and derivatives brokers in accordance with the Law on the Issuance and Trading of Non-Government Securities and the Sub-Decree in relation to this, as well as relevant regulations:
- the reporting obligations;
- notifying SERC of relevant changes or occurrences within the organisation; and
- seeking SERC’s written approval before undertaking specified events or activities.
The New Prakas is issued to monitor and supervise the central counterparties’ and derivative brokers’ observance and compliance with such obligations and to ensure transparency, accountability, and good order among the stakeholders. The New Prakas applies to the central counterparties and derivatives brokers who have obtained licences/permits from SERC.
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Law on Organization and Functioning of Non-Banking Financial Services Authority
The Law on Organization and Functioning of Non-Banking Financial Services Authority (“Law“) was promulgated on 16 January 2021. Under the Law, a Non-Banking Financial Services Authority (“Authority“) is created to regulate and supervise the non-banking financial sector in Cambodia. It is established to: (i) enhance and ensure the effective implementation of regulations relating to the non-banking financial sector; (ii) monitor the development of the non-banking financial sector; and (iii) promote the development and utilisation of financial technology in the non-banking financial sector.
The non-banking financial sector includes, but is not limited to, insurance and private pension, securities, social security, trust, accounting and audit, real estate, pawnshops, and transfer as security.
The Authority is governed by the Non-Banking Financial Authority Council. It has the General Secretariat, Insurance Regulator of Cambodia, Securities Regulator of Cambodia, Social Security Regulator, Trust Regulator, Accounting and Audit Regulator, and Real Estate and Pawnshop Business Regulator as its subordinated entities.
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MEF Issues Prakas No. 009 on Reclassification of Taxpayers
The Ministry of Economy and Finance has issued Prakas No. 009 on the Reclassification of Taxpayers under the Self-Assessment Regime (or the Real Regime of Taxpayers) dated 12 January 2021 (“Prakas No. 009“). Prakas No. 009 applies to all taxpayers who have registered from 12 January 2021, and specifically reclassifies taxpayers based on turnover and sectors.
All types of taxpayers — small, medium, and large — are required to declare the actual turnover to the General Department of Taxation (“GDT“). If GDT finds that the taxpayers have not declared the actual turnover, it may, at its discretion, reclassify taxpayers based on total assets of the taxpayers, which include current and non-current assets.
Prakas No. 009 replaces Prakas No. 025 on the Classification of Taxpayers under the Self-Assessment Regime (or the Real Regime of Taxpayers) dated 24 January 2018.
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Implementation of Online Systems for Labour and Vocational Training Related Public Services
The Ministry of Labour and Vocational Training (“MLVT“) has issued Prakas No. 430/20 MLVT/Pr.K.CBN on the Implementation of Labour and Vocational Training Related Public Services via Online Systems (“Prakas“). The online systems were launched to strengthen the quality and effectiveness of public services, and foster transparency and accountability in the public sector. They were launched upon the request of the private sectors. These online systems are:
- https://lacms.mlvt.gov.kh/ for labour-related public services;
- https://tvcms.mlvt.gov.kh/ for vocational training-related public services; and
https://fwcms.mlvt.gov.kh/ for foreign workforce-related public services.
The above online systems are accessible from 11 January 2021 for those using the public services listed under the authority of MLVT, and from 1 March 2021 for those using the public services listed under the authority of the Provincial/Municipal Department of Labour and Vocational Training and One Window Service Offices (“Sub-National Offices“). In the event that the employers or the employees cannot access the systems during the initial period of this implementation, they are advised to directly contact MLVT or the Sub-National Offices for related public services.
Employers and employees must be aware of the new public service fees set out in Joint-Prakas No. 335 MEF.Pr.K on the Public Services Provided by MLVT dated 27 March 2020 when using the public services.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
