Tax on Salary-Resident
Tax on salary for Resident -Cambodia Tax (updated on 2021)
The tax on salary is a monthly tax imposed on salary that has been received within the framework of fulfilling employment activities. A physical person resident in the Kingdom of Cambodia is liable to the tax on salary for Cambodian source salary and foreign source salary.
Term Salary
The term Salary is defined to include basic remuneration, wages, bonuses, overtime, and other compensations.
Progressive Tax Rate
Below are the progressive tax rates for salary range of each resident employee:
| Monthly salary (Riels) | Rate |
| 0 to 1,300 ,000 | 0% |
| 1,300 ,001 to 2,000 ,000 | 5% |
| 2,000,001 – 8,500,000 | 10% |
| 8,500,001 – 12,500,000 | 15% |
| 12,500,001 – upwards | 20% |
Deductions
- -Deductions for dependent family members , and amount for deduction is KHR 150,000 per month for each member.
- -Deduction from non-working spouse ( wife or husband).
- -Deduction from each minor dependent child under 14, or under 25 and in full-time education, and a deduction for the same amount for one non-working spouse. The term “recognised educational institution” is not defined in the tax regulations. In practice, most schools in Cambodia should be covered by this term. Dependent minor children must have a proper birth certificate.
How to Calculate Tax on Salary (Updated)
| Salary Tax Calculation Base Range | Rate | Tax on Salary will be paid. |
| 0 to 1,300 ,000 | 0% | 0 |
| 1,300 ,001 to 2,000 ,000 | 5% | Salary Tax Calculation Base x 5% – 65,000 |
| 2,000 ,001 to 8,500,000 | 10% | Salary Tax Calculation Base x 10% – 165,000 |
| 8,500,001 to 12 ,500,000 | 15% | Salary Tax Calculation Base x 15% – 590,000 |
| Over 12 ,500,000 | 20% | Salary Tax Calculation Base x 20% – 1,215,000 |
Example 1
Mr. Love got the following revenues for employment activities during November 2018:
- Basic Salary of $1,000
- Overtime (OT) of $200
- Bonus for goods jobs of $100
Assumption:
- Mr.Love is Khmer (resident employee),
- He has housewife ( non-working),
- 2 children ( 10 year old child and 13 year old child and ),
- A daughter is 16 years old but no study.
- A son is 24 years old but study full-time.
Required:
Calculate Tax on Salary if salary rate at $1=KHR 4,000.
Answer
Salary Tax Calculation Base = (1,000+200+100)*4,000-(1+2+1)*150,000=4,600,000 KHR
4,600,000 KHR is between 2,000 ,001 KHR to 8,500,000 KHR, so salary tax rate is 10%.
Tax on Salary=Salary Tax Calculation Base x 10% – 160,000=4,600,000 x 10%-165,000 =295,000 KHR
Note:
- -A daughter is 16 years old but no study, so deduction of 150,000 KHR is not allowed.
- -A son is 24 years old but study full-time, deduction of 150,000 KHR is allowed.