KINGDOM OF CAMBODIA. NATION RELIGION KING. Ministry of Economy and Finance General Department of Taxation. Tax System and Tax Regime in Cambodia . Prepared by: 1- Mr. Tech Sokun Thearith, Litigation Office 2- Mr. Chuor Se, Legal Office. Contents. I-Tax System
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NATION RELIGION KING
Ministry of Economy and Finance
General Department of Taxation
Tax System and Tax Regime
1- Mr. Tech Sokun Thearith, Litigation Office
2- Mr. Chuor Se, Legal Office
20%: Legal persons;
30%: Oil and Gas and Natural Resource;
9%: Qualified Investment Project (QIP) for
transitional period 5 years;
0%: QIP for exemption period.
5% of gross premiums for insurance company
Physical Persons which have annual profit: Tax Rate
From 0 to 6,000,000 Riels 0%
From 6,000,001 to 15,000,000 Riels 5%
From 15,000,001 to 102,000,000 Riels 10%
From 102,000,001 to 150,000,000 Riels 15%
Greater than 150,000,000 Riels 20%
15% income from service (management and consulting)
10% income from rental of movable and immovable property
6% interest in come from fixed term deposit account
4% interest income from non-fixed term deposit account
14% for interest, royalty, rent, dividends, compensation
for management or technical services, and income
connected with use of property.
This tax shall not apply on the distribution of retained earning, if an enterprises has already paid profit tax at the normal rate of 20% for a legal person.
profits which were subject to 0% profit tax rate.
profits which were subject to 9% profit tax rate.
profits which were subject to 20% profit rate.
1% of the annual turnover. This tax is due irrespective of the taxpayer profit or loss position.
Impose on real regime taxpayers.
is a separate and distinct tax from the tax on profits.
This tax may reduce the annual tax on profits.
- Government institutions;
- Religious organizations;
- Charitable, scientific, literary, educational or
- Any chamber of commerce, industry, or agriculture.
1-Tax on Profits (cont)
Tax Rate: A resident physical person is liable to the monthly tax on salary and withheld by the employer:
From 0 Riels to 500,000 0%
From 500,001 to 1,250,000 5%
From 1,250,001 to 8,500,000 10%
From 8,500,001 to 12,500,000 15%
From 12,500,001 to upwards 20%
For non-resident physical person: 20% are withheld by the employer.
20 % of the total values of fringe benefits are withheld by the employer.
- Diplomatic and consular, foreign representative, international organizations and agencies of technical cooperation of other governments;
- Members of the Parliament and Senate;
- Real refunds on professional expenses;
- Indemnity for the layoff;
- Additional remuneration with social characteristics;
- A flat allowance for mission and travel expenses.
Uniform rate of 10%
- The supply of goods or services by a taxable person in the Kingdom of Cambodia;
- The appropriation of goods for his own use by the taxable person;
- The making of a gift or supply at below cost of goods or services by the taxable person;
- The import of goods into the customs territory of the Kingdom of Cambodia.
Public postal service;
Hospital, clinic, medical, and dental services ;
The service of transportation of passengers by a wholly state owned public transportation system;
The importation of articles for personal use that are exempt from customs duties;
Non profit activities in the public interest that have been recognized by the Minister of Economy and Finance.
Non taxable supplies for diplomatic missions and international organizations:
- The imports of goods for/by foreign diplomatic and consular missions, international organizations and agencies of technical cooperation;
- The import of goods for the personal use of the official personnel of missions and organizations.
3 – VAT (Value added Tax)
Tax rate: 2%
Applied to any persons subject to the Estimated Regime system.
Turnover tax payable each month may be fixed in advance for period of 3,6,12 months.
- It’s imposed tax on supply both goods and services in Cambodia.
- The sale of agricultural products that habitual agricultural work of farmers.
- 20% for beer;
- 10% for all types beverages, tobacco product, hotel and other entertainment services and airline tickets;
- 3% for telecommunication services.
- 65% of invoice price excluded VAT.
- A tax levied on select products both locally produced and imported.
Tax rate: is generally levied at 4% of the transfer value.
Tax levied on the rights transfer of immovable properties inform of sale, exchange ,donated and shareholder such as land, buildings, houses, vehicles.
Exemption: for transfers of property of the State, government transfers, public utilities, and charitable organizations.
Tax Rate: 2% of the land value
Tax base: is evaluated by the Commission for the Evaluation of Unused Land.
Tax Rate: 2% of the rental price
- Rental price per room including all taxes and service charges, except VAT.
- 3% of the selling value of alcoholic drinks and cigarette.
- Ambulance and fire truck; vehicles of the Royal Cambodia Force, military police, national police; vehicles owned by diplomatic missions and international organizations.
- Exempted from slaughter tax are livestock
It is yearly tax on land, house and buildings
The tax rate is 0.1% on the Asset Value after deducting 100 million riels (=USD25,000)
property less than 100 million riel
Property owned by the Royal Government
Property owned by any organization or person in relation to nonprofit religious and charitable)
Property owned by a foreign government diplomatic or consular, and agencies of technical cooperation of other government.
1. Self Assessment System (Real Regime)
2. Official Assessment System (Estimated Regime)
Criteria for Self Assessment System:
- All legal persons
- Enterprises that have annual taxable turnover exceed:
500 million Riel for the supplies of goods;
250 million Riel for the supplies of services; and
125 million Riel for Government’s contract value.
Other Enterprises register voluntarily;
VAT Registration: Within 30 days of the day on which the person becomes a taxable person.
Profit tax: In the period of 3 months after the end of the tax year.
VAT: The 20th day of the month following the month in which the payment is made.
Other Tax Including Prepayment: The 15th day of the month following the month in which the payment is made.
1-Self Assessment System (Cont)
This tax level on estimated profit shall be kept constant for a period of 3 months, 6 months or 1 year.
Declaration: Every year by October 31, in the form provided by the tax administration.