The Cambodian Ministry of Economy and Finance has revised the tax rates for all business owners and employees in Cambodia in 2020.
According to a report in the Phnom Penh Post, employers were instructed to deduct employee taxes according to the new rates from February 2020 onwards. This follows the new tax rates being released under Article 5 of the sub-decree dated on February 12, 2020, from the Ministry of Economy and Finance.
What are the Cambodian tax rates in 2020?
The revised tax rates in 2020 are:
- Monthly salaries up to 1.3 million riel = 0% tax
- Monthly salaries between 1.3 million riel to two million riel = 5% tax
- Monthly salaries between two million riel and 8.5 million riel = 10% tax
- Monthly salaries between 8.5 million riel and 12.5 million riel = 15% tax
- Monthly salaries of more than 12.5 million riel = 20% tax
($1USD = 4000 Riel, approximately).
According to Article 5 of the sub-decree, civil servants, teachers, doctors and workers with children and spouses are allowed to reduce taxes based on salaries of 150,000 riel per month. In addition, these employees earning between 1.3 million riel and two million riel could be exempt from tax.
The new Article 42 of the Taxation Law stated that “salary” refers to: salaries, remuneration, allowances, premiums, overtime pay, compensation, and benefits paid to employees.
Cambodian tax rates 2018
- Monthly salaries up to 1.2 million riel = 0% tax
- Monthly salaries between 1.2 million riel to two million riel = 5% tax
- Monthly salaries between 2 million riel and 8.5 million riel = 10% tax
- Monthly salaries between 8.5 million riel and 12.5 million riel = 15% tax
- Monthly salaries more than 12.5 million riel = 20% tax
