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Cambodia: Living There - Tax Issues

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Last Updated: Jul 08, 2007

Living There

An individual is considered a resident for tax purposes if he has stayed in the country for an aggregate of 182 days or more within a calendar year. Residents are taxed on their worldwide income. The applicable tax rates vary depending on the source.

Salary Tax

Personal income tax on salaries in Cambodia is computed and paid on a monthly basis.

SALARY TAX

TAXABLE INCOME , KHR (US$) MARGINAL TAX RATE
Up to 500,000 (US$119) nil
500,001 – 1,250,000 (US$296) 5% on band over US$119
1,250,001 – 8,500,000 (US$2,015) 10% on band over US$296
8,500,001 – 12,500,000 (US$2,964) 15% on band over US$2,015
Over 12,500,000 (US$2,964+) 20% on all income over US$2,964

There are no regulations that specify deductible expenses against personal income tax. However, you may claim deductions of up to CR75,000 (US$20) for each child and another CR75,000 for a housewife.

Withholding Taxes

Non-employment sourced income are subject to withholding taxes. The applicable tax rate depends on the income classification.

Services 10%
Royalties 15%
Rental of movable or immovable properties 10%
Interest payments by a domestic bank 5%

 

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