🇰🇭 Cambodia Tax Guide — Income, Corporate & VAT Rates

The tax rates in Cambodia range from 5% to 20% for personal income tax, with a corporate tax rate of 20% and a value-added tax (VAT) rate of 10%.

Tax System Overview

Cambodia has a territorial tax system, meaning that tax is levied on income earned within the country, regardless of the tax residency status of the individual or company. However, worldwide taxation applies to residents, who are taxed on their global income, with credits available for foreign taxes paid. To be considered a tax resident in Cambodia, an individual must have a principal place of residence in the country, or stay in the country for more than 182 days in a calendar year. Non-residents are taxed only on their Cambodian-sourced income.

The Cambodian tax system is relatively simple, with a focus on tax compliance and revenue collection. The General Department of Taxation (GDT) is responsible for administering taxes, and taxpayers can file returns and make payments online or through authorized banks. Cambodia has also introduced various tax incentives to attract foreign investment and stimulate economic growth.

Personal Income Tax

Corporate & Business Tax

• The corporate tax rate in Cambodia is 20%, applicable to all companies, including foreign-owned entities.
• Small business incentives are available, including reduced tax rates and exemptions for micro, small, and medium-sized enterprises (MSMEs).
• Free zones and special economic zones offer tax holidays and other benefits to investors, such as duty-free imports and streamlined customs procedures.
• Companies must register with the Ministry of Commerce and obtain a tax identification number (TIN) to operate in Cambodia.
• Annual audits are required for companies with annual turnover exceeding KHR 1 billion.

VAT / Sales Tax

• The standard VAT rate in Cambodia is 10%, applicable to most goods and services.
• Reduced rates of 0% and 5% apply to certain items, such as basic foodstuffs, healthcare services, and educational materials.
• Exemptions are available for certain industries, including agriculture, forestry, and fisheries.
• A tourist refund scheme allows foreign visitors to claim refunds on VAT paid on certain purchases.

For Expats & Foreign Workers

• Tax residency rules apply to foreign workers who stay in Cambodia for more than 182 days in a calendar year.
• Cambodia has double taxation treaties with eight countries, including China, Singapore, and Vietnam, to avoid taxing the same income twice.
• Social security contributions are mandatory for foreign workers, with rates ranging from 2% to 5% of salary.
• Remittance rules allow foreign workers to transfer their salaries abroad, subject to certain restrictions and taxes.
• Work permits are required for foreign workers, and tax clearance certificates must be obtained before departing the country.
• Tax exemptions may be available for foreign workers under certain circumstances, such as working for a non-governmental organization (NGO) or international organization.

Crypto & Investment Income

• Investment income, including dividends and interest, is subject to income tax, with rates ranging from 5% to 20%.
• Capital gains tax is included in income tax, with no separate tax rate or exemption.
• Cryptocurrency transactions are subject to VAT and income tax, with rates applicable to the type of transaction and the taxpayer's residency status.
• Tax withholding applies to certain investment income, such as dividends and interest, with rates ranging from 5% to 15%.