Cambodia tax rates and rules for foreigners (2026)

Tax System Overview

Income Tax in Cambodia

Cambodia operates a progressive income tax system, meaning higher earners pay a higher percentage on their income above certain thresholds. The top marginal rate is 20%.

What Does This Mean in Practice?

On a gross annual salary of €90,000, you would pay an effective tax rate of approximately 15%, resulting in a net monthly income of approximately €6,375. This accounts for income tax and mandatory social contributions.

For context, the average monthly salary in Cambodia is approximately €300.

VAT (Value Added Tax)

The standard VAT rate in Cambodia is 10.0%. VAT is included in consumer prices and applies to most goods and services. Reduced rates typically apply to:

• Basic food items and groceries
• Medical supplies and pharmaceuticals
• Books and educational materials
• Public transport (in some cases)

Special Tax Regimes for Expats

Yes — unverified. Requires legal source verification

If eligible, these regimes can provide substantial savings during your initial years in Cambodia. Always verify current requirements with a qualified tax professional, as rules change frequently.

Tax Filing Requirements

As a tax resident of Cambodia, you are generally required to:

1. Register with tax authorities upon establishing residence
2. Obtain a tax identification number
3. File an annual tax return (deadlines vary)
4. Declare worldwide income if you are a tax resident
5. Report foreign bank accounts if applicable

Double Taxation

Cambodia has double taxation agreements (DTAs) with numerous countries. These treaties determine which country has the right to tax specific types of income and help prevent you from being taxed twice on the same income. Before moving, check whether a DTA exists between Cambodia and your home country.

Tax Tips for Expats

• Hire a local tax adviser familiar with expat situations during your first year
• Keep records of all income, deductions, and tax payments from day one
• Understand residency rules: most countries consider you a tax resident after 183 days
• Check for exit tax: some countries impose tax on unrealised gains when you leave
• Social security contributions are often separate from income tax and can add 10-20% to your total burden

Additional Practical Information

The following information is compiled from expat community sources and recent reports to complement the official data above.

Additional Data Points

Recent reports and expat sources provide these additional figures for Cambodia:

• You are considered a resident taxpayer if you have a residence or primary abode in Cambodia or are physically present in the country for more than 182 days in any 12-month period ending in the current tax year.
• Non-residents should pay a flat rate tax rate of 20%, whereas the tax rate varies for residents, depending on their monthly salary. Those earning under KHR1.2 million (~US$300), do not have to pay any tax.
• As a business owner, you must register with the General Department of Taxation (GDT) to receive your taxpayer's identification number (TIN) within 15 days of registering with the Ministry of Commerce. This registration will cost you US$650 for a year, and the GDT will also issue you with a tax patent and a VAT certificate.
• The standard corporate tax rate is 20% payable monthly at 1% of monthly turnover and then trued up on an annual basis after the submission of a tax return. Should the CIT paid during the year exceed the annual CIT liability as per the tax return, a credit can be carried forward to the following tax year.
• If you are found to have underpaid in taxes, you will be issued with a notice outlining the outstanding sum and be liable to pay a penalty of up to 40% of this amount owed, as well as 2% interest per month.

Additional data sourced from expat community reports. All information should be verified with official sources.