Cambodia’s tax system is overseen by the General Department of Taxation (GDT) within the Ministry of Economy and Finance. In comparison to neighboring countries, Cambodia boasts a relatively efficient tax framework. Several factors, such as annual sectoral turnover, legal structure, and criteria for business classification (small, medium, large), are taken into account to determine the specific tax obligations for your company.
SMALL TAXPAYER
- Annual turnover between 250 million and 1 billion KHR (depending on sector)
MEDIUM TAXPAYER
- Annual turnover between 1 billion and 4 billion KHR (agricultural sector)
- Annual turnover between 1 billion and 6 billion KHR (service and commerce sectors)
- Annual turnover between 1.6 billion and 8 billion KHR (industrial sector)
- NGOs, international organizations
LARGE TAXPAYER
- Annual turnover above 4 billion KHR (agricultural sector)
- Annual turnover exceeding 6 billion KHR (services and commerce sectors)
- Annual turnover above 8 billion KHR (industrial sector)
Please note that this summary is not a substitute for consulting a tax professional for a detailed analysis of your specific situation.
While Cambodia boasts a system of primary taxes, it also offers a range of tax incentives and support business development.
THE PRIMARY TAXES LEVIED INCLUDE:
. Corporate income tax: This is a flat tax on profits earned by companies.
- Value-added tax (VAT): This is a consumption tax on goods and services sold in Cambodia.
- Personal income tax: This is a progressive tax on income earned by individuals.
CAMBODIA IMPLEMENTS SEVERAL TAX INCENTIVES INCLUDE:
- Investment tax credits: These are credits that businesses can claim against their tax liability for certain investments.
- Export tax exemptions: These are exemptions from VAT and excise tax for goods exported from Cambodia.
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This list provides an overview of some of the key taxes that medium and large companies operating in Cambodia are liable for. It is important to note that this is not an exhaustive list, and specific tax obligations can vary depending on the nature of your business and industry.
- Monthly income and expenses declaration and report
- Monthly update of workers at the Ministry of labor
- Monthly update (NFSS)
- Annual update at the Ministry of commerce
- Annual tax declaration
The Cambodian tax system undergoes continual development with new laws and regulations introduced periodically. It’s important for businesses and individuals to stay informed about these updates to ensure compliance. We encourage you to contact us for personalized insights and discover specific investment opportunities tailored to your needs.
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The information provided is intended solely for informational purposes and is based on our analysis. It should not be construed as investment advice for any specific project, whose success hinges on various factors. Conducting thorough research is crucial before making any investment decisions, we encourage you to contact us for personalized advice.
Email: info-investment@camckbusiness.com
Sources:
- General Department of Taxation (GDT) of Cambodia: https://www.tax.gov.kh/
- Ministry of Economy and Finance Cambodia: https://mef.gov.kh/
- World Bank – Doing Business Cambodia: https://www.doingbusiness.org/content/dam/doingBusiness/country/c/cambodia/KHM.pdf
- PwC Tax Summaries – Cambodia: https://taxsummaries.pwc.com/cambodia
