Income tax in Cambodia

July 09, 2018

INDIVIDUAL TAXATION

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Residents are taxed on their worldwide income. 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.

As a matter of practice, Cambodia´s tax administration can be divided into ´non-real regime´ taxpayers and ´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.

INCOME TAX

Income earned by resident individuals is taxed at progressive rates. Taxable income is computed by deducting income-generating expenses from the gross income.

INCOME TAX 2018

TAXABLE INCOME, KHR (US$) TAX RATE
Up to 1,000,000 (US$246) 0%
1,000,000 – 1,250,000 (US$307) 5% on band over US$246
1,250,000 – 8,500,000 (US$2,089)  10% on band over US$307
8,500,000 – 12,500,000 (US$3,071) 15% on band over US$2,089
Over 12,500,000 (US$3,071) 20% on all income over US$3,071

INCOME TAX 2017

TAXABLE INCOME, KHR (US$) TAX RATE
Up to 1,000,000 (US$246)    0%
1,000,000 – 2,000,000 (US$491) 5% on band over US$246
2,000,000 – 8,500,000 (US$2,089)  10% on band over US$491
8,500,000 – 12,500,000 (US$3,071) 15% on band over US$2,089
Over 12,500,000 (US$3,071) 20% on all income over US$3,071

INCOME TAX 2016

TAXABLE INCOME, KHR (US$) TAX RATE
Up to 800,000 (US$197) 0%
800,000 - 1,250,000 (US$369) 5% on band over US$197
1,250,000 - 8,500,000 (US$2,089) 10% on band over US$369
8,500,000 - 12,500,000 (US$3,071) 15% on band over US$2,089
Over 12,500,000 (US$3,071) 20% on all income over US$3,071

INCOME TAX 2015

TAXABLE INCOME, KHR (US$) TAX RATE
Up to 500,000 (US$123) 0%
500,000 - 1,250,000 (US$307) 5% on band over US$123
1,250,000 - 8,500,000 (US$2,089) 10% on band over US$307
8,500,000 - 12,500,000 (US$3,071) 15% on band over US$2,089
Over 12,500,000 (US$3,071) 20% on all income over US$3,071

RENTAL INCOME
Income from leasing real estate properties earned by resident individuals is subject to withholding tax at 10%.

CAPITAL GAINS
Capital gains earned by resident individuals are subject to profits tax and taxed at progressive rates.


PROPERTY TAX

Real Estate 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.

Tax on Unused Land

Tax on unused Cambodian land, including unused land with attached abandoned buildings, is levied at a flat rate of 2% on the market value of the land per sq, m. The owner of the property is liable to pay this tax.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are generally taxed at the flat corporate tax rate of 20%. Income-generating expenses are deductible when calculating taxable income.

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