- 1 Brief of Cambodia Taxes:
- 1.1 Tax on Profit in Cambodia
- 1.2 Prepayment of Profit Tax in Cambodia
- 1.3 Minimum Tax in Cambodia
- 1.4 Withholding Tax in Cambodia
- 1.5 Tax on Salary in Cambodia
- 1.6 Value Added Tax in Cambodia
- 1.7 Specific Tax on Certain Merchandises and Services in Cambodia
- 1.8 Turnover Tax in Cambodia
- 1.9 Tax on Property Rental in Cambodia
- 1.10 Stamp Tax in Cambodia
- 1.11 Patent Tax in Cambodia
- 1.12 Registration Tax in Cambodia
- 1.13 Unused Land Tax in Cambodia
- 1.14 Slaughter Tax in Cambodia
- 1.15 Tax on Means of Transportation in Cambodia
- 1.16 Accommodation Tax in Cambodia
- 1.17 Public Lighting Tax in Cambodia
- 1.18 Property Tax in Cambodia
- 1.19 Related Posts:
Brief of Cambodia Taxes:
Cambodia General Tax Department is under the control of Ministry of Economic and Finance. This department is responsible for collecting tax revenues from tax payers, enforcing tax law through tax audit, and penalty if there any tax payers that do not complying with Cambodia Tax Law. The penalty can be formed in warning, money, or prison.
This department also responsible for drafting tax law, regulations, and educating tax payers on how to comply with those law and regulations.
The following is the lost of 18 types of Cambodia Taxes:
Tax on Profit in Cambodia
For Resident Tax Payers, all source of incomes, both Cambodia and Foreign, that they generate are subject to Tax. For Non-Resident Tax Payer, Tax on Profit is subject to income generate in Cambodia only.
For legal person, both Resident Tax Payers and Non-Resident Tax Payer, Tax on Profit are paid to the governments through withholding at the time Resident Tax Payers and Non-Resident Tax Payer are paid for services they are provided.
For example, if you are the consultant, your incomes will be withhold 15% (Resident) or 14% (Non-Resident) by Resident Tax Payers at the time your services are settled. If you are employee, your monthly salaries are withhold by your employer based on scale of your salary under Tax on Salary.
For legal entity, you are required to register with General Tax Department and pay tax base on types of your company.
Here is detail of Tax on Profit in Cambodia.
Prepayment of Profit Tax in Cambodia
This tax is only applicable for Legal Entity.
If your entity are:
- Legal Entity under real regime system liable under 20% of Tax on Profit
- Legal Entity under real regime system liable under 9% ( Qualify investment projects) of Tax on Profit
Your entity is required to pay 1% of monthly turnover no later than 15th of the following month.Detail of Prepayment Profit Tax is here.
Minimum Tax in Cambodia
Minimum Tax is the minimum amount of annual tax profit that entity required to pay. Minimum Tax is calculated at annual tax profit submission and it is equal to 1% of Annual Turnover.
This tax is not the same to Prepayment Profit Tax.
Withholding Tax in Cambodia
Withholding tax is bound for certain expenses for example: interest payment, royalties, rent expenses, management fee, technical fee, and dividends payments.
This withholding tax is not liable by Resident Tax Payer who making payment or rendering of services. This tax is liable for Resident Tax Payer or Non-Resident Tax Payer who received payments from those services. However, Resident Tax Payer who making payment or rendering of services is playing as the Tax Agent to collect withholding tax at the time they make payment and settle those tax collect on monthly basis to Tax Department.
Tax on Salary in Cambodia
Three importance things that Cambodia Tax on Salary deal with are: Resident Employee, Non-Resident Employee and Tax on Fringe Benefit.
If you are the Resident Employee, Monthly Tax on Salary will be apply based on the following Rate.
If you are Non-Resident Employee, Tax Rate will be 20% of your gross salary. This rate is higher than Withholding Tax for Non-Resident (14%) that is why most of company prepare the contract as consultant for Non-Resident Employee rather than as employee. Doing so, the tax rate will be just 14%. But is is illegal.
To meet Resident Employee, you need to pass this three test:
– You has residence in Cambodia;
– You has principal place of abode in Cambodia; or
– You are present in Cambodia on more than 182 days in any 12 month period ending in the current tax year.
Tax on fringe benefits are design to protect owner take the benefit from their companies on others source rather than dividend. That is why this rate is equal to tax on profit (20%).
Employer is require to withhold 20% of benefits that it provide to its staff on monthly basis and settle to Tax Department no later that 15th of the following month.
Value Added Tax in Cambodia
Specific Tax on Certain Merchandises and Services in Cambodia
Turnover Tax in Cambodia
Tax on Property Rental in Cambodia
Stamp Tax in Cambodia
Patent Tax in Cambodia
Registration Tax in Cambodia
Unused Land Tax in Cambodia
Slaughter Tax in Cambodia
Tax on Means of Transportation in Cambodia
Accommodation Tax in Cambodia
Public Lighting Tax in Cambodia
Property Tax in Cambodia
FYI: List provide above is just for your information only, and if you have any question, please drop it in Cambodia Tax Forum