Tax on Salary & Fringe Benefit
Tax on Salary & Fringe Benefit for Small Taxpayers
Tax on salary is applied the same as tax on salary under medium or large taxpayers. Please read more: Tax on Salary under medium or large taxpayers.
Example 1
Mr.A is employee of small taxpayer, XYZ. Mr.A got salary of $450 from XYZ. His wife is housewife, and he has two children less than 14 years.
Assume monthly exchange rate declared by General Department of Taxation (GDT) during November 2018:
- Salary rate @ $1=4,000 KHR
- Average rate @ $1=4,100 KHR
Required
Calculate tax on salary for November 2018.
Answer
Tax on Salary base =450*4,000-(1+2)*150,000=1,350,000 KHR
Because of tax base (1,350,000 KHR) is between 1,200,001-2,000,000 KHR, so tax on salary is subject to 5% as follows.
| 1,200 ,001 -2,000 ,000 | 5% | Salary Tax Calculation Base x 5% – 60,000 |
Tax on salary = Salary Tax Calculation Base x 5% – 60,000=1,350,000 x 5%-60,000=7,500 KHR
So tax on salary is 7,500 KHR