Phnom Penh (FN), Dec. 16 – Cambodian Prime Minister Hun Manet encouraged informal economy workers to register as formal businesses. The process is entirely voluntary, without coercion, and free of charge. He further clarified that there is no obligation to pay taxes for those earning incomes below 250 million riels per year.

The premier spoke on Monday (Dec. 16) at the launching of the digital platform for informal economy registration, held at Sokha Phnom Penh Hotel.

Samdech Thipadei acknowledged that informal economy workers might hesitate to register due to concerns about potential obligations or costs.

Samdech Thipadei underscored, "The registration of informal economy workers is completely voluntary. There is no compulsion and no cost. There is no requirement to register today, tomorrow, or by the end of this year, nor will it impose any burden. It is entirely voluntary. Once you see the benefits and realise there is no burden, you can make your decision voluntarily. This has been the principle from the outset, and any form of encouragement or coercion is strictly prohibited. It must remain voluntary."

The premier added that registering will not only provide informal economy workers with an official identity but also open pathways to further growth opportunities and government support.

On the occasion, Samdech Thipadei continued that informal economy workers with an annual turnover of less than 250 million riels (approximately USD 60,000) are not required to pay taxes, patent tax, or prepare tax declaration documents. This policy reflects the Royal Government's commitment to supporting the welfare of informal economy workers and ensuring that they do not face any financial or administrative burdens in the process.

At the same time, Samdech Thipadei Hun Manet stated that after registering and receiving approval through the digital platform, informal economy workers will be issued a Certificate of Registration for Informal Economy Workers, which acknowledges their role and contribution to the national economy. This certificate serves as official recognition of their business and work identity and is accepted by all ministries and institutions of the Royal Government, both at the national and sub-national levels. It can also be used in official dealings with the private sector.

Registration provides opportunities to enhance technical and professional skills by building on existing expertise and acquiring new competencies. With this support, informal economy workers will be better equipped to grow their businesses, increase their incomes, and create jobs for themselves and others.

The premier added that registering as an informal entrepreneur acts as a key to accessing formal financial services, including credit or investment capital from financial institutions, which can help expand businesses while avoiding the need to rely on informal lenders with high interest rates. Additionally, registered entrepreneurs can open savings and business accounts with financial institutions, in line with the directive issued by the National Bank of Cambodia on 9 October 2024.

Another significant benefit of registration is the opportunity to join the National Social Security Fund (NSSF) under the specified conditions, enabling entrepreneurs to easily contribute and gain access to health care benefits for themselves and their family members.
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