On 21 July 2026, the Ministry of Economy and Finance (MEF) issued Notification No. 007 on Tax Incentives for Investment in Government Securities Issued in 2026 (“Notification 007”). The notification introduces a package of tax incentives designed to make Cambodian government debt securities issued in 2026 more attractive to domestic and foreign investors.
The notification was issued pursuant to the Prime Minister’s approval, Sub-Decree No. 39 dated 14 March 2025 on tax incentives in the securities sector, Prakas No. 416 dated 13 June 2022 on withholding tax (“WHT”) and capital gains tax (“CGT”) incentives for government securities investors, and Prakas No. 133 dated 5 February 2026 on CGT exemptions for securities products.
Key Tax Incentives
| Tax Incentive | Treatment |
|---|---|
| Tax on Income (TOI) on Interest | Full TOI exemption on interest earned from all types of government debt securities issued in 2026. |
| Withholding Tax (Resident Taxpayers) | WHT on interest is reduced by 50%, from 6% to 3%. |
| Withholding Tax (Non-resident Taxpayers) | WHT on interest is reduced by 50%, from 14% to 7%. |
| Capital Gains Tax | Full exemption from CGT on the purchase and trading of government securities. |
DFDL Commentary
The MEF continues to rely on targeted tax incentives to develop Cambodia’s government securities market and broaden its domestic investor base. Notification 007 confirms that government debt securities issued in 2026 will benefit from a comprehensive package covering both recurring investment returns and disposal gains.
Taken together, the TOI exemption on interest, the 50% reduction in WHT rates, and the CGT exemption materially improve the after-tax return on qualifying government securities. This is likely to enhance the relative appeal of government debt securities compared with other investment products available in the Cambodian market.
Investors, financial institutions, fund managers, and other market participants should review the eligibility requirements and factor these tax advantages into any assessment of investment opportunities in government securities issued during 2026.
Tax services required to be undertaken by a licensed tax agent in Cambodia are provided by Mekong Tax Services Co., Ltd, a member of DFDL and licensed as a Cambodian tax agent under license number – TA201701018.