What are the tax rates in Cambodia?
If you live and more specifically work in Cambodia, you will most likely be liable for paying tax here. So what are the tax rates in Cambodia for both residents and non-residents?
Monthly Tax Rates in Cambodia
There is no income tax per se in Cambodia, instead there is a monthly salary tax. If you are an employee then this is arranged and paid by your employer at the following rates.
Monthly salary (KHR*) Tax rate (%)
0 to 1,300,000 riels ($325) 0%
1,300,001 to 2,000,000 riels ($500) 5%
2,000,001 to 8,500,000 riels ($2125) 10%
8,500,001 to 12,500,000 riels ($3125) 15%
Over 12,500,000 riels 20%
The following allowances are exempted from taxation:
- Transportation expenses (between work and home)
- Accommodation allowances provided by employer
- Meal allowances provided by employer
- Social security or welfare fund
- Health/life insurance premium, as long as the premiums are paid for all employees
- Baby care allowances and nursery expenses
- Supply of uniforms or special equipment used for employment
- Redundancy payments
Each resident is also entitled to a 150,000 KHR tax relief for each child they have up to 14 years old, or 25 if the child remains in full-time education.
What are the tax rates in Cambodia if you are a self-employed person?
If you are self-employed in Cambodia then your tax rate essentially falls under the corporate tax structure of the country. This separates companies, such as sole-proprietorships into small, medium and large taxpayers.
Generally speaking this means that as self-employed person, you are mostly likely to be on a sliding rate of tax of between zero and 20 percent.
Who is a tax resident in Cambodia?
Anyone who spends more than 182 days within a one year period in Cambodia is considered a resident in the country for tax purposes. If you spend less than 182 days within a one year period then you are not considered resident for tax purposes.
To read about retiring in Cambodia click here.
Taxes on worldwide income for Cambodian residents
If you are considered a tax resident in Cambodia then you are requited to pay tax on your global income. This theoretically at least means combining both your locally sourced salary with your global income to work out how much you need to pay.
If you pay tax in the other jurisdiction in which you derive income then this can be deducted from your locally based tax liable, providing Cambodia has a dual-taxation treaty with the country your income is earned in. And if so, you will need to provide proof that you have paid tax in that jurisdiction.
Tax rates in Cambodia for non-residents
Non-residents are not taxed on income obtained from outside of Cambodia. Non-residents are generally taxed at 20 percent on income earned in the Kingdom and profits derived from holdings and ownerships in corporate entities that are classed as either medium, or large taxpayers.
Should the non-resident derive an income from a non-corporate company, such as sole-traders and partnerships, they are subject to annual taxation based on the earnings of the company, which runs of a progressive scale from 0-20 percent.
Annual taxable income (KHR) Rates
0 – 16 million riels ($4000) 0%
16,000,001 – 24 million riels ($6000) 5%
24,000,001 – 102 million riels ($25,500) 10%
102,000,001 – 150 million riels ($37500) 15%
Over 150 million riels 20%
Author: Adam Reeves
An avid traveler and telecommunications expert, Adam has explored over 25 countries, immersing himself in their cultures to discover the best they offer. His passion for connecting people extends from his professional life to his adventures abroad.
