Salary unpaid within 60 days of next tax year

Salary unpaid within 60 days of next tax year for Cambodia Tax

Salary unpaid within 60 days of next tax year is non-deductible expense for tax on income (profit).

Accrued salary expense at end of year ( December) is non-deductible expense if company did not pay salary to employees within 60 days of the following year.

Example 1

ABC Company accrued salary expense of $10,000 at 31 December 2018.  Because company faces financial problem, so company expected to pay salary to employees on 28 March 2019.

Required

Suggest salary expense for tax on income (profit) for 2018.

Answer 

Salary expense accrued at 31 December 2018 will not be paid within 60 days of the following year because salary expense is paid on 30 March 2019, so salary expense of $10,000 is non-deductible expense for tax on income (profit) in 2018.