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
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:
Assumption:
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: