Prakas No. 543 on Tax on Salary

The Ministry of Economy and Finance has issued Prakas No. 543 on Tax on Salary dated 8 September 2021.

This purpose of this Prakas is to adjust and update various Prakas and regulations related to tax on salary in response to the rapidly growing Cambodian economy and ensures the effectiveness of tax collection.

This Prakas explains the main definitions regarding salary, fringe benefits.

Taxable salary is all salary income received from performing work, except fringe benefits as stated in this Prakas. The monthly taxable salary is determined as follows:

For resident employees, including:

  1. Salary of Cambodian sources
  2. Salary from foreign sources
  3. Advances, loans or installment that the employer to the employee which shall be added to the taxable salary of the month in which they are paid and shall be deducted from the salary in the month in which the employee repaid.

For non-resident employees, taxable salaries include salaries from Cambodian sources

Based on the evidence of family status, any resident employee with:

  1. Dependent Children at the time of tax payment are entitled to a tax deduction of 150,000 Riels per child per month
  2. Spouses who only work as housewives receive a tax deduction of 150,000 Riels per child per month
  3. For a family where both parents have taxable salary, the tax deduction for dependent children can only be applied to the taxable salary of the father or mother.

Fringe benefits provided by the employer directly or indirectly to a natural person for work that natural person performs for the benefits of the employers are subject to tax on additional benefits. These benefits include:

  1. All kinds of vehicles
  2. Food
  3. Housing
  4. Water, electricity, telephone
  5. Domestic workers in the residence
  6. Money lent with lower interest than market interest. The rate of market interest that is applicable shall be set by the Ministry of Economy and Finance. Click here for market interest in 2021.
  7. Discounted sale of goods
  8. Educational assistance of employees which is not any part of training program directly related to the work performed by the employee
  9. Educational assistance for the children of employees
  10. Life or health insurance premium except the provision of the same fringe benefits for all employees without distinction according to rules and positions.
  11. Part of support of unreasonable and unnecessary expense for the employer’s business
  12. Amount paid to social welfare fund that exceeds the limit allowed by the law
  13. Amount paid to pension fund that exceeds 10 percent of the monthly salary without adding fringe benefits of the employee
  14. Expenses on guest reception, entertainment, recreation or use of any means related to those activities which is not any part related to work
  15. Provision of any part of company shares or capital.


Prakas 1173 MEF.PD.BrK dated 31 December 2003 on Tax on Salary and all regulations contrary to this Prakas shall be abrogated.

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