Cambodia
Overview
Last reviewed - 11 August 2022Cambodia, a country located in Southeast Asia, is bordered by the Lao People's Democratic Republic to the northeast, Thailand to the northwest, Vietnam to the east, and the Gulf of Thailand to the southwest. Cambodia gained its independence in 1953 and is a member of the Association of South-East Asia Nations (ASEAN). Cambodia has a multiparty democracy under a constitutional monarchy, with Phnom Penh as the capital. Cambodia’s official language is Khmer, and the currency is the riel (KHR).
Cambodia’s economy grew rapidly, at around 10% per year, between 2004 and 2008. Growth slowed slightly during the global financial crisis in 2008 and 2009 but picked up again to reach a five-year high of 7.6% in 2013. The economy is expected to grow approximately 4.8% in 2022 and 6.6% in 2023. The continuing increase in economic growth is largely driven by strong exports of garments and agricultural products; expansions of the construction, real estate development, and tourism sectors; and broad-based development in the industrial and service sectors (i.e. hotel and restaurant, financial, transportation, and telecommunication services). It is optimistic that Cambodia will continue attracting more investors because of its low wages, plentiful labour, proximity to Asian raw materials, favourable tax treatment, and the launch of the ASEAN Economic Community in 2015. Also, the government has said opportunities exist for mining bauxite, gold, iron, gems, and particularly hydrocarbons and natural gas. Following explorations carried out during the last few years, hydrocarbon production is expected to be undertaken in the near future.
Since entering Cambodia in 1998, PwC has continually expanded the scope of its services and currently employs around 200 people. These professionals provide industry-focused assurance, tax, and advisory services. PwC Cambodia has a strong relationship with key ministries, financial institutions, and both commercial and aid-funded organisations. Its fully integrated tax practice brings together the right combination of compliance, planning, structuring, and industry experience. PwC Cambodia has developed relationships with the tax authorities at both the departmental and ministerial levels and with related government departments. Through this regular dialogue, PwC Cambodia is able to advise clients on the frequently changing Cambodian regulations.
Quick rates and dates
Corporate income tax (CIT) rates | |
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Headline CIT rate (%) |
20 |
Corporate income tax (CIT) due dates | |
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CIT return due date |
Within three months of company's year end. |
CIT final payment due date |
Within three months of company's year end. |
CIT estimated payment due dates |
Monthly (known as Monthly Prepayment of Income Tax) |
Personal income tax (PIT) rates | |
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Headline PIT rate (%) |
20 |
Personal income tax (PIT) due dates | |
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PIT return due date |
NA |
PIT final payment due date |
NA |
PIT estimated payment due dates |
PAYE 20 days after the end of the month in which the salaries were paid. |
Value-added tax (VAT) rates | |
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Standard VAT rate (%) |
10 |
Withholding tax (WHT) rates | |
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WHT rates (%) (Dividends/Interest/Royalties) |
Resident: NA / 15 (except paid to registered financial institutions) / 15; Non-resident: 14 / 14 / 14 |
Capital gains tax (CGT) rates | |
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Headline corporate capital gains tax rate (%) |
Capital gains are subject to the standard CIT rate. |
Headline individual capital gains tax rate (%) |
20 (being postponed until January 2024). |
Net wealth/worth tax rates | |
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Headline net wealth/worth tax rate (%) |
NA |
Inheritance and gift tax rates | |
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Headline inheritance tax rate (%) |
NA |
Headline gift tax rate (%) |
NA |