Small Taxpayers and Patent Tax

Summary Lesson- Small Taxpayer Classification for Cambodia (Updated 2021)

Small Taxpayer Classification based on ” Turnover”

The term “turnover” refers to the level of a taxable supply of goods and services related to a taxpayers business activities.

Small taxpayers are sole proprietorships or partnerships that:

• 1.Had annual turnover from KHR 250 million to KHR 1,000 million ( approximate USD 62,500 to USD 250,000) for agricultural , service and commercial sectors; or
• 2. Had annual turnover from KHR 250 million to KHR 1,600 million ( approximate USD 62,500 to USD 400,000) for industrial sector; or
• 3.Had turnover at least KHR 60 million ( approximate USD 15,000) for any three consecutive calendar months ending in the current calendar year; or
• 4.Expect to have turnover for the next three consecutive calendar months to be at least KHR 60 million ( approximate USD 15,000); or
• 5.Participate in any bidding or quotation for the supply of goods or services, including market stall management ( Khmer language “Phasi”).

The term “Calendar months” refer to months within the same tax year.

Small Taxpayer Classification based on ” assets = current assets + non-current assets”

If taxpayer declared turnover does not reflect actual turnover. In this circumstance , GDT  will classify using the value of their assets (current and non-current) as follows:

A sole proprietorship or partnership that:

• 1 .Has assets valued at KHR 200 million to KHR 1,000 million (approximate USD 50,000 to USD 250,000) in the agricultural, service and commercial sectors; or
• 2. Has assets valued at KHR 200 million to KHR 2,000 million (approximate USD 50,000 to USD 500,000) for the industrial sector.

Patent for Small Taxpayer (Not Updated)

For Small Taxpayers, you will patent tax KHR 400,000 ( approximate USD 100).

The Patent Tax is paid by the end of March every year (31-March).

The new small taxpayer registered at General Department of Taxation (GDT) will pay Cambodia Patent Tax in a full amount (KHR 400,000) if the new small taxpayer is registered within the first half of the year ( From Beginning January to Ending June of Calendar Year), or but new small taxpayer will pay in a half  (KHR 200,000) of full amount (KHR 400,000) if the new small taxpayers is registered within the second half of the year (From beginning July to ending December of Calendar Year).

The taxpayer who has branches, warehouses, factories or workplaces for the same business activity in the same local jurisdiction is subject to only one patent tax payment, but if taxpayer has different businesses activities in the same local jurisdictions he shall pay the patent tax for each business activity.

The different jurisdictions will pay the each patent tax for each jurisdiction.

The taxpayer must display the patent certificate at the principle place of business.