The government has regulated the licence for some e-businesses, which are booming under the COVID-19 pandemic.
A sub-decree on “regulating licences for types of electronic business and exemption”, which was signed by Prime Minister Hun Sen on Aug 27, states that an individual, private enterprises, entities and branches of foreign companies that operate e-commerce activities in Cambodia or provide services from Cambodia to abroad or from abroad to Cambodia, are required to ask for a business licence. There has been no mention of a fee.
According to the sub-decree, the types of e-commerce that requires a business license are e-commerce website services, e-commerce platform services, online marketing services, online auction site services and other similar services provided through software or smart.
“An electronic business certificate must be issued to individuals, private enterprises that operate electronic businesses in Cambodia, including those that use social media or electronic systems as a means of supplying goods and services,” the decree read.
However, the government has excluded some type of e-businesses that are not required to be licensed, such as advertising of goods or services that are not subject to a contract, non-deposit fees by customers or users, sales of goods or services of individuals or enterprises with a nontaxable turnover, family-owned businesses or seasonal goods. In order to extract data and protect users, those individuals or business owners are required to notify the Ministry of Commerce (MOC) about their enterprise, according to the sub-decree.
Seang Thay, spokesperson at the MOC, said that after the e-commerce law was approved late last year, the government needed to have another sub-decree to support the law and implement the law in detail.
“Currently, we see the trend of technology growth globally and the law is implemented in accordance with progressing information technology and the digital edge”, he said. “And during this COVID-19 era, we see businesses online growing dramaticaly in Cambodia as well as goods and services being sold online.”
Thay said to control the business properly in one place as well as to protect consumers, tax collection will be implemented.
“When we implement the law, the government will collect tax from the businesses,” he said.“However, not all types of online businesses are subject to tax, such as small businesses on facebook.”
According to the sub-decree, individual, private enterprises and entities, both local and foreign, that started operating their businesses before the sub-decree came into effect will have a six-month period to apply for a licence.
The e-business licence is valid for two years from the date of offering and can be renewed. For foreign companies, enterprises and individuals, the license is valid for three years and can be renewed as well.
The Kingdom’s e-commerce laws came into effect last November. The law aims to promote trade via electronic means and addresses key topics such as electronic signatures, which are seen as an important tool in making electronic transactions more secure.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.