The government has regulated licensing for some e-businesses booming amid the COVID-19 pandemic.
A sub-decree on “Regulating Licenses for Types of Electronic Businesses and Exceptions” on 27 Cambodia or providing services from Cambodia to abroad or from abroad to Cambodia must apply for a business license. There was no mention of a fee.
According to the sub-decree, the types of e-commerce that require 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 and private companies conducting electronic business in Cambodia, including those using social media or electronic systems as a means of delivering goods and services,” the decree said.
However, the government has barred some types of e-business that do not require licensing, such as individuals or businesses with non-taxable sales, family businesses, or seasonal goods. To extract data and protect users, those individuals or business owners must notify the Department of Commerce (MOC) of their business under the sub-order.
MOC spokesman Seang Thay said that after the e-commerce law was passed late last year, the government issued another sub-decree to support the law and implement the law in detail.
“Currently, we see the trend of global technology growth, and the law will be implemented in accordance with the advancement of information technology and digital advantage,” he said. “And during this COVID-19 era, we are seeing dramatic online growth of businesses and online sales of goods and services in Cambodia.”
Thay said in order to properly control the business in one place and protect consumers, the tax collection will be carried out.
“If we implement the law, the government will collect taxes from companies,” he said. “However, not all types of online businesses are taxable, such as E.g. small businesses on Facebook.”
Under the sub-decree, both local and foreign individuals, private companies, and corporations that began trading prior to the effective date of the sub-decree have a six-month period to apply for a license.
The e-business license is valid for two years from the offer date and can be extended. The license is valid for three years for foreign companies, companies and private individuals and can also be extended.
The UK’s e-commerce laws came into force last November. The law aims to encourage electronic commerce and addresses key issues such as electronic signatures, which are seen as an important tool to increase the security of electronic transactions.
- tags: Ecommerce, License
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