Here’s the low-down on paying taxes in Cambodia.
One of the major causes of corruption in Cambodia is reputed to be the government’s inability to legally bring in revenue, in part because for many years almost no one in the country paid taxes. That has now changed. The days of not paying tax in Cambodia are over!
For tax purposes, people are considered residents of Cambodia if they have a principal place of abode in Cambodia or are present more than 182 days in the country in any 12-month period ending in the current tax year. Residents are liable for taxes on worldwide income and profits, while non-residents are only taxed on Cambodia-sourced income.
There is no specific income tax, but there is a salary tax.
Residents are taxed on salary at rates of:
- 0 percent for those making up to 1,300,000 KHR (approx $325) per month;
- 5 percent for those making between 1,300,001 to 2,000,000 KHR (approx. $325.01 to $500 USD) per month;
- 10 percent for those making between 2,000,001 to 8,500,000 KR (approx. $500.01 to $2,125) per month;
- 15 percent for those making between 8,500,001 to 12,500,000 KHR (approx. $2,125.01 to $3,125) per month; and
- 20 percent for those making 12,500,000 KHR (approx. $3,125) or more each month.
Fringe benefits are taxed at 20 percent.
Non-residents get taxed a flat 20 percent.
For income from personal services, the tax rate is 15 percent.
For other, non-salary income the tax rate is usually 20 percent, but higher for certain things such a mineral exploitation.
The obligation for tax withholding rests with the employer, not the employee. Cambodia is in the process of adding new taxation mechanisms for those with online businesses or who are self-employed.
For more info:
PricewaterhouseCoopers has a good, free guide to taxes in Cambodia.
Cambodia’s General Department on Taxation has an set of English-language tax guides with all of the regulations.
DFDL is another good source of Cambodia tax information.
Updated Jan, 2022.