Overview of tax services in Cambodia
Law on Taxation in Cambodia formulates in 2003, and according to this law, Sub Decree, PRAKAS, notice i.e. are also regulated.
The main tax items and tax rates are as follows.
Profit tax: 20% Withholding tax: 4~20%
Salary on tax: 0~20% Value added tax: 10%
Specific tax: 10% Accommodation tax: 2%
Tax for public lighting: 3% Tax on property rental: 10%
Patent tax: 1%, 2.5% Stamp tax
Tax on unused land: 2% Registration tax: 4%
Tax on mean of transportation Property tax: 0.1%
- Business income tax:
Business income tax is classified as profit tax and minimum tax. The amount of tax is the higher one of 1% of sales and 20% of income every year. Therefore, the tax declaration can be conducted every month or every year.
The declaration of 1% of sales every month should be conducted before 15th in the next month. It is also applied for corporations show deficit.
All of the businesses are the targets of tax on profit. Including the foreign companies, branch offices are also have the obligation to declare tax.
- Personal income tax:
Personal income tax is only applied for labors that get the salaries. The employers must declare and pay the income tax before 15th in the next month.
- Value added tax:
Value added tax must be declared before 20th every month.
- Tax for non-residents
When the stay period in Cambodia is more than 183 days, it is generally recognized as residents. And except for the taxation at source 14%, dividend distribution and interest for borrowing are also taxable. In the case that business income tax is 0%, the tax of dividend distribution additionally will be 20%.
- Foreign tax deduction
- Other taxes
If the business obtains the permit of Qualified Investment Project and registrars Council for the Development of Cambodia, it will be treated as tax holidays.
The targets of tax holidays will be the business income tax. The period of tax holidays is from the profits of QIP or from the start of business. The one that is earlier is the start and it will continue for three years to six years. The corporations that obtain the QIP are necessary to get the Certificate of Compliance of Cambodia Development Council in order to ensure tax holidays and investment incentive.
The related laws and regulations:
・ Law on Investment No.14 (Investment incentive)
・ Sub-Decree No.14 (General regulations)
・ Sub-Decree No.15 (Business Income Tax)
・ Sub-Decree No.16 (Trail free)
・ Sub-Decree No.17 (Obligation of report)
・ Sub-Decree No.18 (Implication Registration)
To learn more about our incorporation assistance and a range of services of tax in Cambodia, send us a message or call us at +81-3-5369-2930.