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Accounting & Secretary
Personal Income Tax in Cambodia
Cambodian residents (taxpayers domiciled for at least 182 days per year in the Kingdom) are subject to a progressive tax rate up to 20% on their worldwide salary. Non-residents are subject to a 20% flat rate.
Additionally, a Fringe Benefit Tax (FBT) of 20% applies if any of the staff is receiving any fringe benefits or benefits that do not apply to the rest of the staff.
How does Personal Income Tax work in Cambodia?
Cambodia imposes PIT on both residents and non-residents. Residents are people who live in Cambodia for a period or periods which total more than 182 days per tax year. Non-residents are individuals who have stayed in Cambodia for less than 182 days in a tax year.
Residents are taxed on their worldwide salary income, which includes salary from both foreign and domestic sources. Non-residents are only taxed on income earned in Cambodia.
Taxable income in Cambodia is categorised into two groups, salary and fringe benefits.
Salary
Salary is all types of remuneration and benefits received by an employee.
This includes:
- Salary and wages
- Redundancy payments
- Bonuses
- Overtime
- Compensation
Fringe benefits
Fringe benefits are subject to tax on fringe benefits.
Fringe benefits include:
- Private use of motor vehicles
- Meals and accommodation
- Travel expenses
- Low-interest loans
- Life and health insurance premiums
- Pension fund contributions that are more than 10% of the monthly salary
- Entertainment or recreation expenses
Personal income tax rates in Cambodia
| Monthly salary (KHR) | Tax rate | Cumulative deduction (KHR) |
| 0 – 1.3 million | 0% | 0 |
| 1,300,001 – 2 million | 5% | 65,000 |
| 2,000,001 – 8.5 million | 10% | 165,000 |
| 8,500,001 – 12.5 million | 15% | 590,000 |
| Over 12.5 million | 20% | 1,215,000 |
Non-residents are taxed at a flat rate of 20%. Fringe benefits are taxed at a rate of 20%.
Income earned from non-corporate business owners, including partnerships and sole proprietorships is subject to individual tax rates from 0% to 20%.
| Annual taxable income (KHR) | Rates |
| 0 – 16 million | 0% |
| 16,000,001 – 24 million | 5% |
| 24,000,001 – 102 million | 10% |
| 102,000,001 – 150 million | 15% |
| Over 150 million | 20% |
The following allowances are exempt from PIT:
- Commute expenses (between work and home)
- Accommodation allowances
- Meal allowances
- Social security or welfare fund
- Health insurance or life/health insurance premium, as long as the premiums are paid for all employees
- Baby care allowances or nursery expenses
- Supply of uniforms or special equipment used during the employment
- Limited indemnity for a layoff
- Redundancy payments
It is also important to note that residents are entitled to a tax relief amount of 150,000 KHR per month for each child less than 14 years old or up to 25 years if he/she is a full-time student at a recognised educational institution. Residents are also entitled to a tax relief of 150,000 KHR for a dependent spouse who does not work.
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5 Business days
(Average time from the moment we receive
all the required information from you)
All Personal Income Tax submissions are handled by tax experts.Scope of work
- Calculating the PIT and fringe benefits deductions.
- Evaluating potential tax reliefs.
- Handling payment at the General Department of Taxation.
- Answering questions in relation to the Corporate Income Tax process.
- Advise on post payment compliance.
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Additional services that you may need
- Bookkeeping and tax filing
- Annual Audits
- Payroll
What is the process for filing a Personal Income Tax Return?
Calculate the Taxable amount
Our experts will calculate PIT & fringe benefits deductions due, apply any tax reliefs and assess the amount of personal income to be paid.
TIMELINE
5 business days
Prepare & File the Annual Personal Income Tax Return
Our experts will prepare and handle the payment at the General Department of Taxation
TIMELINE
5 business days
Frequently asked questions
What are the Personal Income Tax Exemptions in Thailand?
Taxpayers can deduct the standard amount or actual expenses from the income received as follows:
| Income type | Deductible expenses |
| Employment income (1) | 50% of the assessable income capped at THB 100,000 |
| Income from hiring of services (2) | 50% of the assessable income capped at THB 100,000 |
| Income from goodwill, copyright and other rights (3) | 50% of the assessable income capped at THB 100,000 or the actual expenses |
| Income from interest, dividend (4) | Expenses cannot be deducted |
| Rental income (5) | 10 – 30% of income or actual expenses |
| Income from liberal professions (6) | 30 – 60% of income or actual expenses |
| Construction income (7) | 60% of income or actual expenses |
| Income from business, commerce, agriculture, transportation or other income (8) | 60% of income or actual expenses |
Resident taxpayers can deduct personal and specific allowances.
| Allowances | Baht (THB) |
| PERSONNAL ALLOWANCES | |
| Personal allowances for taxpayers | 60,000 |
| Spouse allowance | 60,000 |
| Child allowance (maximum of three children each) | 30,000 per child |
| Parent allowance | 30,000 per parent (ages over 60) |
| Maternity and pregnancy allowance | Actual payment but not exceeding 60,000 |
| Care of disabled or incapacitated family member | 60,000 each |
| Care of a disabled or an incapacitated person other than a family member | 60,000 |
| SPECIAL ALLOWANCES | |
| Social security fund contributions | Maximum of 9,000 per year |
| Life insurance premium | Not more than 100,000 per year |
| Health insurance premium | Not exceeding 15,000 per year (when combined with life insurance premium does not exceed 100,000) |
| Health insurance premium for parents | Not exceeding 15,000 |
| Mortgage interest incurred for the purpose of purchase or construction of a residential building in Thailand | Maximum of 100,000 per year |
| Contributions to the Provident Fund | Contributions with a limit of 15% of total wages but not exceeding an allowance of 500,000 |
| Contributions to the Retirement Mutual Fund | Contributions with a limit of 15% of total assessable income subject to tax with a maximum allowance of 500,000 |
| Donations to specific charities | Actual donated amount up to 10% of taxable income after all other allowances are deducted |
What happens if I submit a late or inaccurate filing?
Anyone who submits an inaccurate tax return will be subject to a penalty rate of 100% and 200% for filing the tax return after the deadline. The taxpayer may submit a written request to the assessment officer. If the assessment officer accepts that the taxpayer did not intend to evade the payment of taxes and cooperated with the officer during the tax audit, the penalty will be reduced by 50%.
Any individual who fails to submit payment of the personal income tax within the specified time will be liable to pay a surcharge of 1.5% per month, or a fraction of the amount of tax to be paid or remittable, excluding the amount of the tax imposed.
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