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Tax Guide

Financial Year – 1 January 31 December
Currency – Khmer Riel (KHR)

Corporate Tax Summary

Residence – A company is resident in Cambodia if it is incorporated in Cambodia or use to be controlled or has it own business activities in Cambodia.

Basis of Taxation – Tax on income is an obligation of resident tax payer for Cambodian’s source income and foreign’s source income and it is an obligation of non-resident tax payer for Cambodian’s source of income.

Reference
Corporate Income Tax Rate (%) 20%, 30%, 0%, 0 20% for taxable income from legal person
30% for taxable income from natural resource
0% for taxable income from qualified investment project (QIP)
0 (progressive rate) for taxable income from physical person/ sold proprietorship company
Branch Tax Rate (%) 20% 20% for taxable income from legal person (Branch from oversea)
Withholding Tax Rate:
Dividends – Franked 0%, 14% 0% for resident
14% for non-resident
Dividends – Unfranked N/A N/A
Dividends – Conduit Foreign Income N/A But it will be calculated in taxable income during the year
Interest 15%, 14% 15% for resident except loan from Bank (6% for fixed saving , 4% for current saving)
14% for non-resident except loan from Bank
Royalties from Intellectual Property 15%, 14% 15% for individual person
14% for non-resident
Fund Payments from Managed Investment Trusts N/A N/A
Branch Remittance Tax 14% 14% for branch from oversea
Net Operating Losses (Years)
Carry back N/A
Carry forward could be carry forward for five year

Individual Tax Summary

Residence – N/A

Basis of Taxation – N/A

Filing Status – N/A

Personal Income Tax Rates

Taxable Income Tax Payable – Residents Tax Payable – Non Residents
N/A N/A N/A

Goods and Services Tax (GST)

Rate 10%
Taxable Transactions In Cambodia called VAT (value added tax) not GST.
Value added tax is a kind indirect tax which is liable on added value of when taxable supplies include all taxes except VAT itself. Final person consumer can’t claim VAT credit on this goods or services.
Registration Cambodia’s tax law divide real regime tax payer in to 3 types:

  • Small tax payer have annual turnover from 250,000,000 KHR to 700,000,000 KHR.
  • Medium tax payer have annual turnover from 700,000,000 KHR to 4,000,000,000 KHR
  • Large tax payer have annual turnover from 4,000,000,000 KHR up.all the above 3 types need to be register at:
  • Ministry of commerce
  • General department of taxation
  • and asking license from authorize ministry
Filing and Payment The dateline of VAT payment and submission is on 20th of the following month, this VAT must be paid during 1st until 20th of the following month.

Other Taxes Payable

Tax Reference
Payroll Tax Tax on Salary is tax on individual income that received from working activities. Other allowance out of scope of Salary which provide by employer to employee is subject to Tax on fringe benefit.
Stamp Duty Stamp Duty tax is a tax that is levied on registrations property transfer .
This tax will be paid by the heirs and the cost of the transfer and at the following rates:
a. 4% : For transferring all kindly of real estate include building other construction and land include putting real estate is capital of the company.
b. 4%: For transferring of ownership on transportation including vehicles, boats, ships and all kinds of vehicles
c. 0.1%: For the transferring of shares in the company
d. 0.01%: For contracting in the provision of state’s goods or services
e. Fix amount 1,000,000 KHR should paid for legal letter.
Land Tax The Unused Land Tax is levied on a non-constructed hand and the abandon constructed land which are located in the cities and the areas which are levied by the unused land Appraisal committee (ULAC)
The unused land tax is paid by the ownersThe unused land tax base is the market value of land within each cities and region which is evaluated in square meter and levied by the ULAC by June 30th every year.The unused land tax is imposed at the rate 2% on the tax base a stated in article 30.

Withholding tax (WHT) : is a tax which is withheld by real regime tax payer (company) that act ask withholding agents. Withholding agents is responsible in judgment, withhold, calculation and pay this WHT to GDT. (Withhold from both resident and non-resident tax payer)

Last updated: 01.07.2020