Tax on Salary-Non Resident

Tax on Salary-Non Resident for Cambodia Tax

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The tax on salary for non-resident is a monthly tax imposed on salary that has been received within the framework of fulfilling employment activities. Non-resident employee in the Kingdom of Cambodia is liable to the tax on salary for Cambodian source salary only, but foreign source salary is not subject to tax on salary for non resident.

Term Salary

The term Salary is defined to include basic remuneration, wages, bonuses, overtime, and other compensations.

Tax on Salary Rate for Non-Resident is 20%.

Example 1

Assume Mr.A is Canadian and he came to work in Cambodia for ABC Company.

Contract for job period is 5 months. Salary is $3,000 per month.

Required:

1.Based on your judgment, advise that Mr.A is resident or non-resident employee.

2.Calculate Tax on Salary if monthly salary rate at $1=KHR 4,000.

Answer

1.Resident or Non-Resident Employee

Based on case above, Mr.A is non-resident employee because his work period is short term that is 5 months ( less than 182 days). Mr.A is non-resident employee, so his salary is subject to tax on salary for non-resident 20%.

2.Tax on salary for non-resident 

Salary = $3,000

Tax on Salary Base = 3,000 x 4,000=12,000,0000 KHR

Tax on Salary for non-resident = 12,000,0000 x 20%=2,400,000 KHR

So tax on salary for Mr.A, non-resident employee = 2,400,000 KHR per month.