Tax Regulation in Cambodia

Cambodia implements a unified national tax system and adopts a territorial tax system. The Tax Law promulgated in 1997 and the Tax Law Amendment Law promulgated in 2003 provide a legal basis for Cambodia’s taxation system. In 2016, the self-declared tax system was officially used. Under this system, taxpayers are classified into three types according to the number and scale of enterprises, namely, small taxpayers, medium taxpayers and large taxpayers.

In general, all enterprises must register for each business activity they develop, apply for tax certificates, and pay tax license taxes. Additionally, Commercial entities registered with the Ministry of Commerce are medium or large taxpayers. Companies that are eligible for qualified investment projects are classified as large taxpayers.

Main Taxes and Tax Rates
Currently, the tax system includes the main types of taxes as follows: profit tax, minimum tax, withholding tax, wage tax, value-added tax, land idle tax, business registration tax, import tax, export tax, and special tax.

[Profit tax] The taxable object of profit tax is the income of resident taxpayers from Cambodia or abroad, and the income of non-resident taxpayers from Cambodia. The tax amount is determined by the taxpayer’s company type, business type, and business level to determine the actual tax system, simplified tax system, or estimated tax system.  In addition to the preferential investment tax rates of 0% and 9%, the general tax rate is 20%, and the tax rate for natural resources and oil and gas resources is 30%.

[Withholding tax] The Cambodian tax law provides for the withholding of income including services, rent, interest, royalties and dividends. The applicable tax rate varies according to whether the recipient of the income is a Cambodian resident or a non-Cambodian resident (Cambodian resident taxpayer refers to any person who has lived in Cambodia for a long time or has lived in Cambodia for more than 183 days in the tax year; Any organization and organization in Cambodia Legal persons that operate various commercial activities and cooperative operations or commercial activities in Cambodia).
If Cambodian resident taxpayers pay residents in cash or in kind, they will be withheld at a certain tax rate applicable to the amount paid before tax withholding, and tax is paid. Withholding tax rates represents by 15%, 10%, 6% and 4%.
Cambodian resident taxpayers who pay interest, royalties, rents, management or service remuneration, dividends and other payments to non-Cambodian resident taxpayers shall be withheld at 14% of the payment amount and pay taxes.

[Payroll tax] Payroll tax is a monthly tax levied on wages obtained from performing job duties. The wages of Cambodian residents originating from domestic and overseas, and the wages of non-residents originating in Cambodia shall be subject to payroll tax, which shall be withheld by the employer according to the following progressive tax rate table.
Cambodian Payroll Tax Rate

[Value added tax] Value added tax is levied at a rate of 10% of the taxable value of taxable supplies. Taxable supplies include: goods or services provided by Cambodian taxpayers; goods or services allocated by taxpayers; goods or services given or provided at a price lower than cost; and goods imported into Cambodia. No value-added tax is levied on goods exported outside Cambodia, or services provided outside Cambodia.

[Other taxes]