There is no income tax in Cambodia per se, rather a tax on employment income. The tax rate is dependant on the income derived from employment, however non-residents are taxed at a flat rate of 20% for their Cambodian-sourced employment income.

Rental Income

Income from leasing real estate properties earned by nonresident individuals is subject to withholding tax at 14% (for residents, the rate is slightly lower at 10%).

Capital Gains

Capital gains earned by nonresidents are subject to profits tax at a flat rate of 20%. For immovable property, taxpayers have the option to claim either a standard tax deduction of 80% of the taxable income or actual expenses, provided they submit supporting documents. However, the MEF has announced the delay of the implementation of capital gains tax until the end of 2025.

Property Holding Tax

Real estate tax is levied at 0.1% on the market value of the property exceeding KHR100,000,000 (US$24,570). The owner of the property is liable to pay this tax. Properties under this value, as well as state-owned lands, agricultural land and industrial land, are exempt from paying Cambodia’s property tax.

Corporate Income Tax

Income earned by companies is generally taxed at rates of 0%-20% depending on the company size. Income-generating expenses are deductible when calculating taxable income.

Property Buying Costs and Taxes in Cambodia