Laws and Regulations

Principle for Calculating Concession Land Rental Fee

Unofficial translation

Kingdom of Cambodia
Nation-Religion-King

Ministry of Agriculture, Forestry and Fisheries

Principle for calculating concession land rental fee
From crops and animal breeding investment funds

A. The purpose for collecting the concession land rental fee on crops and animal breeding investments is aiming to:

• Collect appropriate revenue from this sector to contribute as much as possible the national budget and thus to rehabilitate and construct as soon as possible the country,
• Manage and use natural resources (agricultural land) for an economic price and with appropriate efficiency,
• Prevent the request for occupying the land without implementing any agricultural production out off transferring from one to another person to get profit, and
• Encourage whom who has the fund the sincere will to invest in this sector.

B. Principle for calculating the concession land rental fee

1. The concession land rental fee shall be started to calculate on the total area of concession which the Royal Government has granted to a company for doing business counting from the third year of collecting the products of the first plantation.

2. The concession land rental fee shall be calculated based upon the preferential price of the total concession land of a company which the Royal Government has granted for doing business. The preferential price of the land shall be classified into 4 categories in accordance to the type of soils (As mentioned in the Annex 1)

3. The economic price of the 4 categories lands shall be fixed as follows:

• Category 1: 10 US$/ha/year
• Category 2: 6 US$/ha/year
• Category 3: 4 US$/ha/year
• Category 4: 0 US$/ha/year (Threadbare or deteriorated land)

4. The collection of concession land rental fee has been encouraged by 2 mains qualifications:

• Based on the regional location of the concession land
• Based on the direct situation of the business location

C. Procedure for calculating the concession land rental fee

The calculation of concession land rental fee of a company shall be executed according to the following formula:

Formula for calculating the rental fee per hectare and per year:

P1  =  P.S [ 1 – R ]

Remarks:

S: Total concession area granted to company to do business

P: Economic price of the land per hectare and per year in accordance to the type of soil

P1: Annual rental fee that should collect from the company

R: Percentage of encouragement favorite rate

Phnom Penh, 13 January 1998

Minister of Agriculture, Forestry and Fisheries

Signed and sealed

 

TAO SENG HOUR