Cambodia

Overview

Last reviewed - 29 July 2021

Cambodia, 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 contract approximately 3% in 2020, but it is expected to bounce back and grow by 4% in 2021. 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
Headline CIT rate (%)

20

Corporate income tax (CIT) due dates
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
Headline PIT rate (%)

20

Personal income tax (PIT) due dates
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
Standard VAT rate (%)

10

Withholding tax (WHT) rates
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
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 2022).

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Headline inheritance tax rate (%)

NA

Headline gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.