Implementation of new rate of tax on salary
Subject: Tax
Applicable Industries: All corporate

On December 27, 2022, Ministry of Economy and Finance (MEF) issued Instruction No. 017 MoEF on Implementation of new rate of tax on salary.

This instruction is line with Sub-decree 196 dated 28 September 2022. Read more here of Sub-decree 196.

The deduction of for each dependent child and housewife spouse shall be 150,000 Riels per month. In particular, for workers/employees of factories/enterprises, taxable salary shall be deducted further by the benefits received from performing their work as stipulated in Circular 011 MEF dated 6 October 2016.

To calculate salary tax of the resident employees, salary tax calculation basis must be figured out by taking the total taxable salary to minus allowance for spouse and dependent children. Then tax on salary is equal to tax base multiplied by tax rate minus difference-over-tax-amount.


Taxable parts of monthly salary Tax rate Difference over tax amount
From 0 Riels to 1,500,000 Riels 0% 0 Riel
From 1,500,000 Riels to 2,000,000 Riels 5% 75,000 Riels
From 2,000,000 Riels to 8,500,000 Riels 10% 175,000 Riels
From 8,500,000 Riels to 12,500,000 Riels 15% 600,000 Riels
More than 12,500,000 Riels 20% 1,225,000 Riels