Cambodia

No amount/estimate: April 2020, The NBC (i) reduced the interest rate in its Liquidity Providing Collateralized Operations (LPCOs) that decreases banks’ funding costs in domestic currency, (ii) cutting the interest rate on negotiable certificates of deposit (the collateral for LPCOs) to encourage banks to disburse loans.

No amount/estimate: April 2020, The NBC announced the delay in additional increases in the capital conservation buffer until 2021.

No amount/estimate: (i) February 2020, Deferral of comprehensive tax audits for the entire 2020 for hotels and guesthouse businesses in Siem Reap Province; (ii) 23 December 2020, The government announced the deferral of compulsory payment of Social Security Fund in occupational risk and healthcare sector during the period of business suspension. On 25 March 2021, the government announced that it will continue to delay the payments for the social security fund, occupational risk, and healthcare of the National Social Security Fund during the period of business suspension; (iii) 23 December 2020, The government announced to delay the payment of owed amount of the civil aviation fees until March 2021 while permitting those airlines companies to pay the owed amount in installments after the delayed period. On 25 March 2021, the government announced that this measure will be extended from April to June 2021.

No amount/estimate: (i) February 2020, Temporary tax break for registered enterprises in the tourism and garment/footwear and bag manufacturing sectors. April 2020, Support to tourism sector, i.e. exemption from all monthly taxes for two months (June to July 2020) for hotels, guesthouses, restaurants and travel agencies registered with the General Department of Taxation, and whose business activities are operated in Phnom Penh, Siem Reap, Preah Sihanouk, Kep, Kampot, Bavet city, and Poipet city. 31 July 2020, Continued support to the aforementioned businesses through tax exemption. 1 October 2020, the measure is extended until December 2020. On 23 December 2020, the government announced that it will continue to exempt all monthly taxes for the aforementioned businesses until March 2021. On 25 March 2021, the government announced that it will continue to exempt monthly taxes of all kinds for these businesses from April to June 2021. These businesses are still obligated to submit a tax declaration letter and use the E-VAT system during this exemption period; (ii) Waiving of CIT for 4 months from February to May 2020 for hotels and guesthouse businesses operating in Siem Reap Province (tourist town); (iii) Waiving of transfer tax for any purchases below USD70,000 from licenced property developers effective for one year (February 2020 to January 2021). On 23 December 2020, the government announced the continued exemption of stamp tax for houses valued at or less than USD70,000 until December 2021; (iv) April 2020, Exemption of all airlines registered in Cambodia from minimum tax for two more months from June to July 2020. 31 July 2020, Measure is extended until September 2020. 1 October 2020, The government announced to extend the measure until December 2020. On 23 December 2020, the government announced the continued exemption of minimum tax for the airline companies registered in Cambodia until March 2021. On 25 March 2021, the government announced that it will continue to exempt minimum tax for three more months starting from April to June 2021 for the airline companies registered in Cambodia; (v) 30 December 2020, Exemption on patent tax and signage tax for travel agencies and operators in other tourism-related industries. The taxpayers are still obligated to do patent renewal (See Measure 10: No breakdown); (vi) No amount/estimate: 26 May 2020, Loosen the application of withholding tax for local and overseas lenders by about 5% to 10%. On 23 December 2020, the government announced the reduction of withholding tax rate to 5% in 2021 (10% in 2022) on interest payments for the new borrowings (10% in 2021 for existing borrowings) by banks and MFIs from both resident or non-resident lenders.

No amount/estimate: 24 June 2020, The Royal Government introduced the "Cash Transfer Program for Poor and Vulnerable Households during COVID-19" with support from international donors. The monthly spending for this assistance program is approximately KHR100 billion (or about USD25 million) and will run for two months in the first round (June and July). 31 July 2020, Implement Cash Assistance Programmes for the poor and vulnerable families amid COVID-19 pandemic until September 2020. 1 October 2020, Continue to roll out the cash relief program for poor and vulnerable families during the impact of the COVID-19 pandemic for three more months from October to December 2020. On 23 December 2020, the government announced that it will continue to roll out the program until March 2021. On 25 March 2021, the measure was announced to be extended from April to June 2021.

23 December 2020. The Government of Cambodia will continue to provide financial support (USD40 per month for each worker) in the garment/textile, footwear, travel accessory, bag and tourism industries (e.g., hotels, guesthouses, restaurants, and travel agents) until March 2021. On 25 March 2021, the government announced an extension of the financial support from April to June 2021 .

26 May 2020, Extend the coverage and amount of the budget for the “cash for work program” in 2020 to USD100 million to absorb the labor force who have lost employment from the factories/enterprises and returned home from the foreign countries, to support the local people’s living standards, and to bring about socioeconomic achievements through the construction of small local physical infrastructures to enhance the agricultural and economic sectors.

(i) 7 February 2020, Greater Mekong Subregion Health Security Project (USD0.27 million); (ii) 7 February 2020, Strengthening Regional Health Cooperation in the Greater Mekong Subregion-Additional Financing (USD0.34 million); (iii) 24 April 2020, Policy Advice for COVID-19 Economic Recovery in Southeast Asia (USD0.15 million); (iv) April 2020, TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases (USD3.96 million) [update]; (v) 10 July 2020, COVID-19 Active Response and Expenditure Support Program (USD250 million); (vi) 24 July 2020, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3) (USD0.21 million); (vii) 29 June 2021, Mitigating the Impact of COVID-19 through Community-Led Interventions (Supplementary) (USD0.73 million) [update]; (viii) 10 August 2020, Sustaining the Gains of the Regional Cooperation in the Greater Mekong Subregion (Additional Financing) (USD0.05 million); (ix) 31 August 2021, Strengthening Regional Health Cooperation in the Greater Mekong Subregion (USD0.13 million) [update]; (x) 3 September 2021, Supporting Enhanced COVID-19 Vaccination and Post-COVID-19 Health Security Response in Southeast Asia (USD1 million) [update]; (xi) 7 September 2021, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 4) (USD0.16 million) [update]; (xii) 9 September 2020, Strengthening the Enabling Environment for Disaster Risk Financing (Phase 2) (USD0.13 million); (xiii) 22 September 2021, Fostering Regional Cooperation and Integration through Knowledge and Capacity Building of Trade and Supply Chain Finance Program Banks (USD 0.06 million); (xiv) 7 October 2021, GMS Health Security Project (Additional Financing) (USD25 million) [update]; (xv) 15 October 2021, Inclusive Financial Sector Development Program, Subprogram 3 (USD40 million) [update].

(i) April 2020, World Bank: (a) USD20 million credit for the Cambodia COVID-19 Emergency Response Project, as part of the first tranche of emergency support operations through a dedicated fast-track COVID-19 facility (loan); (b) USD14 million of the H-EQIP project funds was allocated through a Contingency Emergency Response Component (CERC) to purchase ambulances and medical equipment and to quickly develop national laboratory capacity to rapidly respond to the COVID-19 pandemic (loan); (ii) May 2020, USAID provided more than USD11 million in total assistance for the response to COVID-19, which includes (a) USD5 million in ESF for relief and job-skills training for vulnerable people, such as returning migrants, and expanded efforts to counter trafficking and protect children; and (b) more than USD6 million in health assistance to help the Cambodian Government prepare laboratory systems, activate case-finding and event-based surveillance, communicate risk, support technical experts for response and preparedness, and more (grant); (iii) 29 May 2020, The World Bank approved a USD15 million credit from the International Development Association (IDA) for the Cambodia Strengthening Pre-Service Education System for Health Professionals Project to strengthen Cambodia’s pre-service education system for health professionals to improve the quality of care for better health outcomes ; (iv) 5 June 2020, The Government of Japan will provide a grant aid totaling JPY4.5 billion (approximately USD41.4 million) to implement three development projects in Cambodia, of which (a) JPY348 million (USD3.2 million) will be used for Human Resource Development Scholarship; (b) JPY2.15 billion (USD19.8 million) for the Improvement of Referral Hospitals in Siem Reap province; and (c) JPY2 billion (USD18.4 million) for the Economic and Social Development Programme through providing medical supplies to protect against and respond to the spread of COVID-19 in Cambodia; (v) June 2020, UN COVID-19 Response and Recovery Fund, a UN inter-agency fund mechanism established by the UN Secretary-General to help support low and middle-income program countries to respond to the pandemic and its impacts including an unprecedented socioeconomic shock, has allocated USD1 million to Cambodia (grant); (vi) 11 June 2020, Team Europe (EU and its Member States, including Switzerland).announced that it has mobilized EUR443 million (roughly USD483 million and KHR1,990 billion) in grants and loans to support Cambodia’s efforts in dealing with the economic and social fallout of the Coronavirus Disease 2019 (COVID-19) pandemic. This EUR443 million support combining new allocations, funds already programmed and redirected funds, is channelled through the Royal Government institutions and partner organisations, including civil society organisations; (vii) 12 June 2020, The Government of Japan extends an emergency assistance of USD6.3 million comprising of medical supplies and technical assistance to the RGC through the United Nations Office for Project Services (UNOPS); (viii) September 2020, Additional Financing to Cambodia COVID-19 Emergency Response Project USD1.15 million; (ix) 20 April 2021, the government of Viet Nam provided humanitarian assistance of USD300,000 to the government of Cambodia to combat COVID-19; (x) 7 May 2021, the Australian Government signed an agreement with the United Nations Development Programme (UNDP) to contribute an additional AUD4 million (about USD2.5 million) to mitigate the impacts of COVID-19 on Cambodia’s economy and people, starting immediately. The additional AUD4 million will fund further work to strengthen social assistance, support local businesses to adapt to pandemic-related difficulties, and other priorities identified through consultation with the Royal Government of Cambodia and civil society; (xi) 24 June 2021, The World Bank approved a new USD200 million International Development Association (IDA) credit for the Cambodia Relief, Recovery and Resilience Development Policy Financing Project (DPF) to support COVID relief and build resilience against future economic shocks.