Different Rates for Income Tax

Different Rate for Tax on Income in Cambodia

There are five different rates of income tax as follows.

20%: It is standard rate for a legal person (general business company);
30% : It is for company making profit with natural resources. Oil or natural gas production sharing contract and the exploitation of natural resources, including timber, ore, gold and precious stones;
5% : It is insurance company. Gross premiums received from life insurance, non-life insurance or reinsurance in Cambodia that does not have any type of savings component. But Financial Management Law dated 19 December 2016, any income from any other activities and the insurance or reinsurance of life that has a savings component, is taxed as normal at the standard 20% rate on taxable income;
0% : it is for tax deferral period such as qualified investment project (QIP) during the tax exemption period as determined by Council for Development of Cambodia (CDC) ;
0% to 20% :According to the progressive tax rate (table below) for the profit realized by the physical person, sole proprietorship and the distributive share to each member of a pass-through that is not classified as a legal person ( Updated 2021).

Tax Rate Now :

Parts of the annual taxable profit	Tax rate
From 0 to 16,000,000 KHR	0%
From 16,000,001 KHR to 24,000,000 KHR	5%
From 24,000,001 KHR to 102,000,000 KHR	10%
From 102,000,001 KHR to 150,000,000 KHR	15%
Greater than 150,000,000 KHR	20%

Tax Rate before:

Parts of the annual taxable profit	Tax rate	P= Taxable Profit
From 0 to 12,000,000 KHR (Approximate: USD 3,000)	0%	0
From 12,000,001 KHR to 18,000,000 KHR (Approximate: USD 3,000 to USD 4,500)	5%	P x 5% – 600,000 KHR
From 18,000,001 KHR to 102,000,000 KHR (Approximate: USD 4,500 to USD 25,500)	10%	P x 10% – 1,500,000 KHR
From 102,000,001 KHR to 150,000,000 KHR (Approximate: USD 25,500 – USD 37,500)	15%	P x 15% – 6,600,000 KHR
Greater than 150,000,000 KHR (Approximate: above USD 37,500)	20%	P x 20% – 14,100,000 KHR