Tax Guide


The corporate income tax rates in Cambodia are as followed:

  • 20% for the income by a legal entity
  • 30% on the revenue from oil and natural gas distribution, the exploitation of natural resources, including forests, gold, or precious stones
  • 0% of eligible income from project investment within the tax exemption period set by the Council for the Development of Cambodia (CDC)
  • For enterprises with significant activities in the insurance, property or other risks, the income tax shall be as follows:
  1. 5% of gross premiums received during the tax year for any insurance or reinsurance of property or other risks in the Kingdom of Cambodia
  2. For life insurance or life insurance activities other than property insurance or reinsurance; or Other Risks Income tax is regulated under Article 20 (1)

Minimum Tax (MT)

MT (1% of annual income) is applied only for the real regime, except QIP. If the profit tax amount exceeds 1% of annual turnover, the taxpayer pays only the tax on income.

Taxpayer classification

Prakas No. 025 MoEF Br.K on Amendment of Classification of Taxpayers under Self-Assessment Regime dated 24 January 2018 apply to the taxpayers under self-assessment regime who perform business in the Kingdom of Cambodia.

Self-assessment regime


Small taxpayer

A- Has an annual turnover from 250 million Riels to 700 million Riels or

B- Has a turnover of three consecutive months which ends in the current calendar year from 60 million Riels or

C- Expect to have a turnover in three consecutive months from 60 million Riels or

D- Participate in bidding, price consultation or price survey in supplying goods or service including tax on goods sale.

Medium taxpayer

A- Any enterprise that has annual turnover more than 700 million Riels to 4,000 million Riels or

B- Any enterprise that has been registered as legal entity, representative office or

C- National and sub-national state institutions, all types of organizations or associations including non-governmental organizations or

D- Diplomatic mission and foreign consul, international organizations and technical cooperated agencies of various governments.

Large taxpayer

A- Any enterprise that has annual turnover of more than 4,000 million Riels or

B- Subsidiary of multi-national companies, foreign company branches or

C- Any enterprise that has been registered as qualified investment project.

For the purpose of this Prakas, the term “turnover” refers to the value of the supply of goods or service which is the business activity of the taxpayer.




Income received by individuals for services such as management, consulting, etc.

Payment of royalties for intangibles and interests in mineral resources

Payment of interest by a resident taxpayer carrying on business, other than domestic banks or financial institutions


Income from the rental of movable or immovable property


Interest payment by domestic banks to residents with fixed term deposit account


Interest payment by domestic banks to residents with non-fixed term deposit account


Payment to non-residents: Interest, royalties, rent and other income connected with the use of property, dividends, payment for management or technical services



Tax on salary

Cambodian government issued a sub-decree dated 13 February 2020 on threshold for annual taxable income and for the monthly salary.

Tax of salary are as followed:

Monthly salary (KHR)

Tax rates

Cumulative deduction (KHR)

0 – 1.3 million



1,300,001 – 2 million



2,000,001 – 8.5 million



8,500,001 – 12.5 million



Over 12.5 million



Taxable income

Annual taxable income realized by the physical person, sole proprietorship and distributive share to each member of a pass through that is not classified as a legal person are as followed:

Annual taxable income (KHR)


0 – 16 million


16,000,001 – 24 million


24,000,001 – 102 million


102,000,001 – 150 million



The self-assessment regime taxpayers who are making taxable supplies are obliged to register for VAT, and collect VAT from the supplying of goods or services to their customers. 

Taxable supply

Taxable supply means:

  • Supply of goods or services by a taxable person in Cambodia
  • Appropriation of goods for his own use by a taxable person
  • Making of a gift or supply at below cost of goods or services
  • Import of goods into Cambodia


Non-taxable supplies

Non-taxable supplies are as follows:

  • Public postal service;
  • Hospital, clinic, medical, and dental services and the sale of medical and dental goods incidental to the performance of such services;
  • The service of transport of passengers by wholly state owned public transportation system;
  • Insurance services;
  • Primary financial services;
  • The imports of articles for personal use that are exempted from customs duties;
  • Non-profit activities in the public interest;
  • The imports or the purchases of goods for use in the exercise of their official function of foreign diplomatic and consular missions, international organizations and agencies of technical cooperation of other governments.

Tax rate

The rates of VAT are as follows:

  • 0% This rate applies only to goods exported from the Kingdom of Cambodia and services consumed outside Cambodia. Exports are defined as including international transportation of passengers and goods.
  • 10% This standard rate applies to all supplies other than exports and non-taxable supplies.

Calculation of tax due

The VAT paid on import of goods or the VAT on locally purchase of goods or services for the business is called “Input Tax”.
The VAT charged on supplying of goods or services to customers is called “Output Tax”.
VAT due = Output Tax – Input Tax.

Non-deductible Input Tax

Non-deductible input tax are the VAT paid on:

  • Entertainment, amusement and recreation expense unless the taxable person carries on a business as a provider of entertainment, amusement or recreation;
  • Purchases or imports of automobiles, unless the taxable person carries on the business of dealing in, or hiring such automobiles; or
  • Purchases or imports of certain petroleum products, unless the taxable person carries on the business as a supplier of such petroleum products.

The taxable person must file the monthly VAT return in the form prescribed by the tax administration by the 20th of the month following the month that the supplies have been made.