Cambodia: Taxes and Costs

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Witholding tax is 10% or 14% in Cambodia

Income Tax

None. No income tax on rent is in practice payable by individuals.

There is a gap between pure theory and administrative practice. Income tax is in theory payable on net profits from rentals by residents on a sliding scale of 0-20%, and by non-residents at a flat rate of 20%.

However as a matter of practice, Cambodia’s tax administration can be divided into ‘real regime’ taxpayers (businesses) who are registered with the tax department and required to submit a monthly tax return. However most individuals are ‘non-real regime’ taxpayers. Non-real regime taxpayers do not submit tax returns as there is no practical mechanism for their doing so (though tax on employment income is withheld by employers), and in practice do not pay income tax on rent.

VAT

None. Individuals are not VAT-registered and are not liable for VAT on rental income

Withholding tax

Withholding tax is payable by the lessee at 10% if the landlord is resident, and 14% if the landlord is non-resident. This tax is increasingly written into new leases.

CORPORATE ROUTE

Income Tax

Companies must pay income tax and as a matter of administrative practice, must deduct 1% per annum from turnover. Profit tax is 15% on net profits, the usual depreciation and deductions being allowed.

VAT

VAT is payable on rental income at 10%.

Withholding tax

Withholding tax is payable by the lessee at 10%.

Capital gains

Capital gains are not taxed at present.

However a capital gains tax law is likely by year-end, within the framework of the profits law. Gains will be taxed at 20%, after deductions and allowances.

Corporate Route

Companies are will be similarly taxed under the new capital gains tax law, at 20%, after deductions and allowances.

Cambodia - more data and information

• Guide to buying houses and registering property sales in Cambodia

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