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Tax Guide

Financial Year – 1 January – 31 December
Currency – Cambodian riel (KHR)

Corporate Tax Summary

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

Basis of Taxation – Resident taxpayers are taxed on their worldwide income. Non-resident taxpayers are taxed on their Cambodian source income.

Reference
Corporate Income Tax Rate (%) 20%, 30%, 0% 20% for the taxable income of legal persons
30% for income from natural resources
0% for the taxable income from qualified investment projects (QIP)
0-20% (progressive rate) for taxable income from natural persons/sole proprietorship companies
Branch Tax Rate (%) 20% 20% for the taxable income of legal persons (branch from overseas)
Withholding Tax Rate:
Dividends – Franked 0%, 14% 0% for residents
14% for non-residents
Dividends – Unfranked N/A N/A
Dividends – Conduit Foreign Income N/A But it will be calculated in the taxable income during the year
Interest 15%, 14% 15% for residents, except loans from banks (6% for fixed savings, 4% for current savings)
14% for non-residents, except loan from banks
Royalties from Intellectual Property 15%, 14% 15% for individual persons
14% for non-residents
Fund Payments from Managed Investment Trusts N/A N/A
Branch Remittance Tax 14% 14% for branches from overseas
Net Operating Losses (Years)
Carry Back N/A
Carry Forward Five years

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, value added tax (VAT) is an indirect tax which is applicable to the supply of most goods and services. The end consumer cannot claim VAT credit on these goods or services.
Registration Cambodia’s tax law divides taxpayers into 3 types:

  • Small taxpayers have an annual turnover from KHR 250,000,000 to KHR 700,000,000
  • Medium taxpayers have an annual turnover from KHR 700,000,000 to KHR 4,000,000,000
  • Large tax payers have an annual turnover of more than KHR 4,000,000,000

All the above 3 types need to be registered at:

  • The Ministry of Commerce
  • The General Department of Taxation
  • Licensed with the authorised ministry
Filing and Payment The deadline for submission and payment of VAT returns is the 20th of the following month. The VAT must be paid between the 1st and the 20th of the following month.

Other Taxes Payable

Tax Reference
Payroll Tax Salary tax is a tax on individual income received from working activities. Other allowances out of scope of salary which are provided to employees by the employer are subject to tax as a fringe benefit.
Stamp Duty Stamp duty is levied on registrations of property transfer. The tax is paid by the heirs on the cost of the transfer at the following rates:
a) 4% on the transfer of all kinds of real estate include buildings and other constructions, and land including adding real estate to the capital of a company.
b) 4% on the transfer of ownership of transportation including all types of vehicles, boats, ships etc.
c) 0.1% on the transfer of shares in a company.
d) 0.01% for contracting in the provision of state goods or services
e) A fixed amount of KHR 1,000,000 for legal letters.
Land Tax Unused Land Tax (ULT) is levied on non-constructed land and abandoned constructed land located in cities and the areas which are levied by the Unused Land Appraisal Committee (ULAC).
The ULT is paid by the owners. The tax base is the market value of land within each city and region, which is evaluated in square metres and levied by the ULAC by June 30th every year. The ULT is imposed at the rate of 2% on the tax base.

Last updated: 01.07.2020

Contact us:

Managing Partner in Cambodia
Veasna Tek
Managing Partner | Tax
+855 61 766 168