Taxes in Cambodia: Comprehensive Guide to Corporate and Personal Taxation in 2025
Cambodia’s tax landscape has continued to mature in 2025, reflecting the country’s evolving economy and regional integration goals. With ongoing tax reforms aligned to international standards and the adoption of digital filing systems, understanding the Cambodian tax regime is more critical than ever for both businesses and individuals.
Whether you’re running a company, investing, or working in the Kingdom, this guide will help you navigate Cambodia’s corporate income tax, personal salary tax, VAT, withholding tax, and more with clarity and confidence.
Cambodia Corporate Income Tax (CIT) Overview
Cambodia applies a standard Corporate Income Tax (CIT) rate of 20% on taxable profits. This rate has remained stable and aligns with regional averages.
Businesses are categorized by the General Department of Taxation (GDT) into:
- Small taxpayers: Annual turnover ≤ KHR 250 million (~$62,500)
- Medium taxpayers: KHR 250 million–700 million
- Large taxpayers: Turnover exceeding KHR 700 million or those registered as companies or branches of foreign entities
Source: PwC Cambodia Tax Summary
Key CIT Features:
- Filing deadline: Annual tax return and final payment are due within three months of the company’s fiscal year-end.
- Monthly prepayments: Estimated CIT must be submitted monthly, calculated as 1% of monthly turnover.
- Capital gains: Taxed under CIT at 20%. While a separate capital gains tax for individuals was proposed, implementation has been deferred until end of 2025.
Personal Income Tax (PIT) and Salary Tax
Cambodia does not impose a standalone Personal Income Tax (PIT). Instead, a monthly Salary Tax (or PAYE Pay-As-You-Earn) is levied on employees’ income.
Progressive Salary Tax for Residents:
| Monthly Salary (KHR) | Tax Rate |
|---|---|
| 0 – 1,300,000 (~$325) | 0% |
| 1,300,001 – 2,000,000 | 5% |
| 2,000,001 – 8,500,000 | 10% |
| 8,500,001 – 12,500,000 | 15% |
| Over 12,500,000 (~$3,125) | 20% |
- Non-residents pay a flat 20% on Cambodian-sourced income.
- Fringe benefits (housing, cars, meals, etc.) are taxed separately at 20% flat.
- PAYE Deadline: Must be remitted within 20 days after the end of the salary payment month.
Source: PwC Tax on Individuals
Value-Added Tax (VAT)
VAT is a major component of Cambodia’s indirect tax system, especially for medium and large taxpayers.
VAT Overview:
- Standard rate: 10% on most goods and services.
- Registration threshold: Mandatory for businesses with annual turnover > KHR 125 million (~$31,250).
- Filing frequency: Monthly or quarterly, depending on taxpayer classification.
- Deadline: Typically by the 20th of the following month.
Learn more at PwC VAT Summary
Businesses are required to issue proper VAT invoices, which are essential for input credit claims and audits by the GDT.
Withholding Tax (WHT)
Withholding Tax (WHT) applies to both resident and non-resident entities on various payments.
| Transaction Type | Resident Rate | Non-Resident Rate |
|---|---|---|
| Dividends | 15% | 14% |
| Interest (non-bank) | 15% | 14% |
| Royalties and licenses | 15% | 14% |
| Services (non-resident) | N/A | 14% |
- WHT is due monthly alongside other tax returns.
- Documentation (e.g., valid invoices, service agreements) is essential for compliance.
Source: PwC Cambodia Withholding Tax
Other Taxes and Exemptions
Cambodia’s tax code is relatively simple in that it does not impose net wealth, inheritance, or gift taxes. However, certain specific tax regimes are in place:
- Qualified Investment Projects (QIPs): Eligible for tax holidays or special depreciation allowances under the Cambodian Investment Law (CDC).
- Excise Taxes: Applied to goods like tobacco, alcohol, and petroleum often in addition to VAT.
Tax Filing and Payment Deadlines
| Tax Type | Filing Frequency | Deadline |
|---|---|---|
| Corporate Income Tax | Annually | 3 months after fiscal year-end |
| Salary Tax (PAYE) | Monthly | 20 days after month-end |
| VAT | Monthly/Quarterly | 20th of following month/quarter |
| Withholding Tax | Monthly | 20th of following month |
Reference: Cambodia General Department of Taxation
Recent Updates and Regulatory Changes in 2025
Cambodia’s regulatory tax landscape evolved significantly in early 2025 with the implementation of Prakas No. 578 MEF.Prk.GDT, issued under the 2023 New Law on Taxation.
Key Updates:
- Standard Operating Procedures (SOPs) introduced for tax declaration and payment workflows.
- Greater enforcement of e-filing systems, with most taxpayers required to file digitally.
- Increased audit activities focused on VAT compliance and transfer pricing disclosures.
- Clarifications around capital gains treatment, pushing enforcement for individuals to 2026.
Source: KPMG Cambodia Tax Update
Common Challenges and Best Practices
Cambodia’s self-declaration tax system can be complex for new entrants and SMEs. Here are key challenges and recommendations:
| Challenge | Best Practice |
|---|---|
| Complex classification (small/medium/large) | Seek classification advice from a local tax advisor |
| Multiple monthly filings | Use accounting software or hire a professional firm |
| Frequent regulatory updates | Monitor GDT website and subscribe to firm updates |
| Risk of non-compliance penalties | Ensure on-time filing and retain valid invoices |
Firms such as Acclime Cambodia and Deloitte offer compliance and advisory services tailored to foreign and domestic taxpayers (source).
Summary Table: Key Tax Rates and Deadlines in Cambodia 2025
| Tax Type | Rate/Threshold | Filing/Payment Deadline |
|---|---|---|
| Corporate Income Tax | 20% standard rate | Within 3 months after fiscal year-end |
| Salary Tax (Residents) | 0% – 20% progressive | 20 days after month-end (PAYE) |
| Salary Tax (Non-residents) | Flat 20% | 20 days after month-end (PAYE) |
| Value-Added Tax (VAT) | 10% standard rate | Monthly or quarterly |
| Withholding Tax (WHT) | 14-15% depending on status | Monthly |
| Capital Gains Tax (Corp) | 20% (included in CIT) | With annual CIT return |
| Net Wealth / Inheritance | None | N/A |
Conclusion
In 2025, Cambodia’s tax system strikes a balance between accessibility and increasing regulatory sophistication. For both local businesses and foreign investors, a sound understanding of corporate income tax, salary tax, VAT, and withholding tax is essential to operating successfully.
Staying compliant means keeping track of deadlines, adapting to legal reforms such as Prakas 578 MEF.Prk.GDT, and leveraging professional support where needed. As Cambodia continues its digital transformation in tax administration, those who are proactive in their planning will find the system both manageable and increasingly transparent.
