Here is a summary of annual and principal Tax obligations imposed on registered entities in Cambodia :

 Value Added Tax

  • Standard Rate:          10%
  • Export Rate:               0%

       (garment manufacturers…)​

Withholding Tax

  • Interest:                     15%  Residents / 14% Non Residents
  • Royalties:                   15%  Residents / 14% Non Residents
  • Rental:                       10%
  • Services:                    15%  Residents / 14% Non Residents

 

Personal Income Tax (KHR)

 

  • 0                –  1,300,000       0%
  • 1,300,001  –  2,000,000        5%
  • 2,000,001  –  8,500,000       10%
  • 8,500,001  –  12,500,000     15%
  • 12,500,001–  and above       20%

 

For non-residents, only the Cambodian sourced salary is subject to Cambodian Tax regardless of the place of salary payment. The tax rate for non-residents is flat at 20%.  

​For residents, including Cambodian and individual presents in Cambodia for more than 182 days in any 12 month period, are taxed at the progressive rates as mentioned above

 

 Corporate Income Tax (CIT)

Tax Rate 

  • Standard rate:  20%
  • Oil and gas, and certain mineral exploitation activities:  30%
  • General risk (non-life) insurance activities: 5% (on gross premium income)
  • Resident individuals:  0% to 20%
  • Tax exemption (tax holiday):   0%

 

 

Resident taxpayers are subject to tax on worldwide income / profits while nonresidents are taxed on Cambodian sourced income / profits only. Residents earning foreign sourced profits and income can receive credits for foreign taxes paid.

 

Capital Gains Tax: Cambodia does not have a separate capital gains tax. Any gain on the sale of fixed assets and investment is subject to CIT

Calculation of the capital gains tax

For immovable property, the tax authorities provide a choice where the taxpayer can claim a standard tax deduction of 80% of the taxable income or actual expenses with supporting documents. For capital gain from sale or transfer of other assets, taxpayers must claim tax deduction based on actual expenses incurred.

Taxpayers must submit tax returns and pay capital gains tax to the GDT within three months after realising the capital gain. 

Actually the capital gains tax would be effective from 1 July 2020. However, the MEF has announced the delay of implementation of the capital gains tax to 1 January 2024.

 

Property taxes (prepayment)

 

A Prepayment of Tax on Profit equal to 1% of monthly turnover inclusive of all taxes except VAT, is required to be paid on a monthly basis by the 15th day of the succeeding month.

The Prepayment can be offset against the annual Tax on Profit liability and the Minimum Tax.

Where a taxpayer has a Tax on Profit exemption, the taxpayer is also exempted from the Prepayment obligations. However, a nil monthly return will need to be lodged where a taxpayer is not subject to Minimum Tax, a monthly Prepayment of Tax on Profit must still be made. However, unutilized Prepayments from a prior year can be used to offset the current amount due and no physical payment may be required.

 

Dividend Distribution

 

Distributions of dividends are subject to Additional Tax on Profit on Dividend Distribution (Additional Tax on Profit) as follows:

If the dividend is already subject to                                                   ATTD rate

        Corporate Income Tax rate: 

                               0%                                                                        20% or 30%

                              20%                                                                                0%

                              30%                                                                                0%

Interim dividends that have not been subject to CIT are subject to ATDD at a standard rate of 20% or 30%.

 

Patent Tax

Small Taxpayer:

  • 400,000 Riel per annum ($100).

▪ Medium Taxpayer:

  • 1,200,000 Riel per annum ($300)

▪ Large Taxpayer:

  • Annual turnover from 4000M Riel to 10,000M Riel shall pay 3M Riel ($1M to $2.5M shall pay $750).
  • For taxpayers whose have annual turnover above 10,000M Riel($2.5M) shall pay 5M Riel ($1,250).
  • Register from 01 July, the patent tax is half a year (50%).