Circular No. 003 MEF has clarified on tax exemptions of seniority payment and VAT on service which specified in circular.

23-05-2019 / By Administrator / Taxation

The Ministry of Economy and Finance issued circular No. 003 on 11 April 2019 to clarify the seniority which the Ministry of Labor and Vocational Training issued Prakas No. 443 in September 2018 The seniority that began this year. According to Circular 003, a clear indication of seniority payments is exempt from the tax on salary and it is deductible expenses. The circular also states clearly that this exemption applies only the payment for Cambodian. On another topic, the Circular states that the VAT is exempted from the Employment Services by training, transferring and managing migrant workers or trainees to work abroad for private recruitment agencies.



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