Tax on Salary and Fringe Benefits
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Monthly Tax Return
Tax on Salary and Fringe Benefits
Phone
089 888 378/ 093 888 797
Address
St 284, Olympic, Boeng Kengkorng.
lbcsaleinfo@gmail.com
*A Cambodian resident taxpayer’s worldwide salary (Cambodian and Foreign sources) will be subject to Cambodian Tax on Salary.
*For non-residents, only the Cambodian-sourced salary will be subject to Tax on Salary.
*A Cambodian resident taxpayer includes any physical person who:
- has a residence in Cambodia;
- has a principal place of abode in Cambodia; or
- is physically present in Cambodia for more than 182 days in any 12-month period ending in the current tax year.
*A non-resident for tax purposes is any person who is not a resident in contrast with the above criteria.
The following payments are included to be the base for calculating tax on salary:
- Basic salary
- Year-end bonus/ bonus
- Overtime/ hardship compensation
- Loan to staff
- Advance salary
- Seniority (not allowed by law)
- Commission
- Other incentives
(*)Taxable salary and tax rate of resident taxpayer (progressive rate) have been using:
(*)Taxable salary and the tax rate of a resident taxpayer (progressive rate) that will be practiced on 1st January 2023 onwards Pursuant to Sub-Decree of the Royal Government of Cambodia No. 196 dated 28 September 2022:
The tax rate for non-residents is a flat rate of 20%. This is a final tax
The allowance for deduction is KHR150, 000 (USD38) for each dependent:
- A housewife supported with marriage certificate,
- A child of fewer than 14 years of age; or
- A child up to 25 years of age if he/she is a full-time student at an officially recognized educational institution
*Note: this rebate does not apply to the non-resident taxpayer, it’s for resident taxpayers only.
The following payments are subject to tax on fringe benefits:
- employer-provided cars;
- household personnel (food, housing, water, electricity);
- expenses on entertainment, amusement, or recreation;
- educational assistance not part of training program directly related to the performance of the duties of the employee;
- schooling fee for employee’s children;
- Flight ticket for personal trip;
- low-interest loans or Sales below market;
- life and health insurance premiums unless the same benefits are provided to all employees regardless of employment position;
- contribution to a pension plan in excess of 10% of the employee’s monthly salary exclusive of fringe benefits;
According to point No. (VII) above, when providing those benefits to employees, fringe benefits tax is at the fixed rate of 20% to both resident and non-resident taxpayers.
