The Ministry of Economy and Finance announced Prakas No. 198 MEF.PrK on March 17, 2025, which provides domestic aviation firms with temporary withholding tax ("WHT") relief for a four-year term, from the date of issuance until December 31, 2028. Reducing tax-related costs for domestic airlines, increasing their competitiveness in regional and global markets, and promoting the growth of the travel and aviation industries are the objectives of the Prakas.

For certain services, such as aircraft rental, maintenance and overhaul, overseas technical assistance, overseas airport charges, IT shared service costs, brand licensing fees, online ticket booking system fees, training by overseas vendors, centralized system shared costs, and system license fees, it offers a reduced WHT rate of 2% on payments to non-resident taxpayers. Management service fees and other general services are subject to a 10% WHT charge.

Tax obligation

In compliance with Cambodian tax rules and regulations, domestic airlines must keep accurate accounting records and submit monthly and annual tax reports via the e-Filing system.