Tax on Salary and Fringe Benefits




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Tax on Salary and Fringe Benefits

*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.

Residency and non-residency

*A Cambodian resident taxpayer includes any physical person who:

  1. has a residence in Cambodia;
  2. has a principal place of abode in Cambodia; or
  3. 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.

Tax on Salary Based

The following payments are included to be the base for calculating tax on salary:

  1. Basic salary
  2. Year-end bonus/ bonus
  3. Overtime/ hardship compensation
  4. Loan to staff
  5. Advance salary
  6. Seniority (not allowed by law)
  7. Commission
  8. Other incentives
Tax rate for resident

(*)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:

Tax rate for non-resident

The tax rate for non-residents is a flat rate of 20%. This is a final tax

Rebates on spouse and children

The allowance for deduction is KHR150, 000 (USD38) for each dependent:

  1. A housewife supported with marriage certificate,
  2. A child of fewer than 14 years of age; or
  3. 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.

Tax on Fringe Benefits Based

The following payments are subject to tax on fringe benefits:

  1. employer-provided cars;
  2. household personnel (food, housing, water, electricity);
  3. expenses on entertainment, amusement, or recreation;
  4. educational assistance not part of training program directly related to the performance of the duties of the employee;
  5. schooling fee for employee’s children;
  6. Flight ticket for personal trip;
  7. low-interest loans or Sales below market;
  8. life and health insurance premiums unless the same benefits are provided to all employees regardless of employment position;
  9. contribution to a pension plan in excess of 10% of the employee’s monthly salary exclusive of fringe benefits;
Tax Rate on 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.

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