A distinction is made between cash salary and fringe benefits.
Cash salary includes remuneration, wages, bonuses, overtime, and compensation paid for fulfilling employment activities. Employer-provided loans and advances are also considered cash salary.
Fringe benefits include the following:
- Accommodation support, including payment for utilities and domestic helpers.
- Education assistance (unless employment-related).
- Provision of motor vehicles (presumably for private use).
- Low-interest loans and discounted sales.
- ‘Excessive or unnecessary’ cash allowances, social welfare, and pension contributions.
- Certain insurance support.
- Entertainment or recreational expenditure (which may additionally be non-deductible to the provider for ToP purposes).
Exempt salary includes the following:
- Certain redundancy payments.
- Reimbursement of employment-related expenses.
- Certain uniform entitlements.
- Certain travel allowances.
- Salaries of employees of approved diplomatic, international, and aid organisations.
- Salaries of non-residents where the salary cost is not deducted in Cambodia.