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Parrothead

Red tape up ahead for expatriates

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Parrothead

Cambodia has been a relatively laissez-faire environment for foreign business owners and expatriates working here, however that may all be about to change if government ministries get their way.

 
The first sign that times may be changing came from a recent announcement from the Ministry of Labour that it will enforce a law requiring foreigners working in Cambodia to obtain a labour card and permit. The law has been on the books since 1992, but it has been irregularly enforced.
 
This policy shift follows the recent overhaul and transformation of the General Department of Taxation. The department intends to be more assertive, if not aggressive, in casting its net for higher tax revenue collection.
 
Together these changes could become a lethal combination for expatriates who own registered businesses.
 
It is also problematic for the vast community of expatriate freelancers, consultants and business owners who operate without business licences. The result is that the cost of doing in business Cambodia is rising rapidly. If the trend continues, it may price small foreign investors out of the Cambodian market.
 
 
There is a paragraph a bit further down that reads:

 

The company must then register its employees in order to obtain labour books and work permits. Costs for Khmer employees range from $7-$10. Expatriates must retroactively pay $100, starting from the year of issuance of their first Business Visa. There is also a quota charge, book charge and medical exam fee, the quota, and medical exam fee being annual charges.

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zeros

Paul,

will these changes affect someone like you, who uses the business visa for purposes other than operating a business?

will it affect teachers or those operating a small farm?

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Parrothead

Paul,

will these changes affect someone like you, who uses the business visa for purposes other than operating a business?

will it affect teachers or those operating a small farm?

 

Long term? I have no idea. Short term, not hardly. Even if they do decide to go after current foreigners living in country - those of us who are not working, I imagine they will have enough to keep their hands full concerning local businesses and English teaching schools for some time to come. 

 

If they follow suit as they have done in the past (by looking at their track record), I doubt any of this will follow through. The government has to get off its butt and initiate it, before any of this will even get going. 

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dicey eye

From what I see the big problem with all these new rules and regulations is enforcement. The police make damn little salary, $50 to $70 per month. Do you think they will accept extra duties on such small pay? I doubt it.

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