List of Cambodia Taxes ( 18 Types of Taxes in Cambodia)

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.

Monthly tax on salary rate in Cambodia

Assumption 4,000 Khmer Riel = 1USD

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