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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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Tax System and Tax Regime in Cambodia

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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


I-Tax System

II-Tax Regime

There are 15 type of Taxes, divided into State Budget and Capital-Provincial Budget

I-Tax System

1 tax on profits
1-Tax on Profits

Tax Rate:

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%

1 tax on profits cont
1-Tax on Profits (cont)

Withholding Tax

For resident:

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

(banking institution)

4% interest income from non-fixed term deposit account

(banking institution)

For non-residents:

14% for interest, royalty, rent, dividends, compensation

for management or technical services, and income

connected with use of property.


1-Tax on Profits (cont)

  • Additional Profit Tax

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.

Tax Rate:

    • 20% of retained earning, if an enterprise is distributing

profits which were subject to 0% profit tax rate.

    • 11/91 of retained earning, if an enterprise is distributing

profits which were subject to 9% profit tax rate.

    • 0% of retained earning, if an enterprise is distributing

profits which were subject to 20% profit rate.

Minimum Tax:

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

labor organization;

- Any chamber of commerce, industry, or agriculture.

1-Tax on Profits (cont)

2 salary tax
2 - Salary Tax

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.

2 salary tax cont
2- Salary Tax (cont)


- 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.

3 vat value added tax
3 – VAT (Value added Tax)

Tax Rate:

Uniform rate of 10%

Taxable supply:

- 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.

Non Taxable Supplies:

Public postal service;

Hospital, clinic, medical, and dental services ;

The service of transportation of passengers by a wholly state owned public transportation system;

Insurance services.

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)

4 turnover tax
4 -Turnover 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.

Tax base:

- It’s imposed tax on supply both goods and services in Cambodia.


- The sale of agricultural products that habitual agricultural work of farmers.

5 excise tax
5 - Excise Tax

Tax Rate:

- 20% for beer;

- 10% for all types beverages, tobacco product, hotel and other entertainment services and airline tickets;

- 3% for telecommunication services.

Tax Base:

- 65% of invoice price excluded VAT.

- A tax levied on select products both locally produced and imported.


6-Tax on Property Rental

  • Tax Rate:
    • - 10% income from rent
  • Tax Base:
    • - A tax on receipts from rents on land, building and
    • certain equipment paid by the owner.
    • Exemption:
    • - Property owners whose monthly income from rent
    • is below CR 500,000 under the estimate regime are
    • exempted.

7 - Stamp Tax

  • Nature of Tax:
  • This tax is payable in the form of stamps affixed to some documents, panos/posters (advertising), and trade marks.
    • Tax Rate:
    • - Specific small amounts depending on the type of document ranging from CR 100 for school registration to CR 2,000 for investment authorizations.
    • - The person who supplies these products is responsible for the payment of this tax to the tax administration.
8 registration tax tax on property transfer
8 - Registration Tax (Tax on property transfer)

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.

9 tax on unused land
9- Tax on Unused Land

Tax Rate: 2% of the land value

Tax base: is evaluated by the Commission for the Evaluation of Unused Land.

10 accommodation tax
10 - Accommodation Tax

Tax Rate: 2% of the rental price

Tax Base:

- Rental price per room including all taxes and service charges, except VAT.

11 public lighting tax plt
11 - Public Lighting Tax (PLT)

Tax Rate:

- 3% of the selling value of alcoholic drinks and cigarette.


12 – Patent Tax

  • Nature of Tax:
    • An annual registration or license fee levied on all business, industries, and services. The base is the previous year’s turnover. New businesses are taxed on the basis of a provisional estimate.
  • Exemption:
    • Farmers are not subject to the tax.

13 - Vehicles Tax

  • Nature of Tax:
    • - Annual levy on vehicles and boats
    • Exemption Vehicles:

- Ambulance and fire truck; vehicles of the Royal Cambodia Force, military police, national police; vehicles owned by diplomatic missions and international organizations.


14 - Slaughter Tax

  • Nature of Tax:
    • - Tax levied on slaughterhouses based on the value of
    • the livestock that is slaughtered.
    • Exemption:

- Exempted from slaughter tax are livestock

    • slaughtered for celebrating national tradition, for
    • research uses and killed in accident.
15 property tax
15- Property Tax

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)

The exemption

property less than 100 million riel

Agriculture land

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.


II- Tax Regimes

  • Two Regimes:

1. Self Assessment System (Real Regime)

2. Official Assessment System (Estimated Regime)

1 self assessment system
1-Self Assessment System

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;

Register within 15 days of starting economic activity.

VAT Registration: Within 30 days of the day on which the person becomes a taxable person.

Tax Declaration:

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)

Determination of taxable turnover is based on the discussion between tax officers and taxpayers.

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.

  • Official Assessment System