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Belaws Home ›› Cambodia ›› Accounting & Secretary ›› Personal income tax

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.

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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.

Pricing

FROM

USD 100 *

+ 10% VAT

5 Business days

(Average time from the moment we receive
all the required information from you)

Get started
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.

Need more?

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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(*) This Conversation is intended to provide basic answers to questions you may have. But it is not a Lawyer’s Consultation.

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