Tax Obligations for Small Businesses in Cambodia

Taxes depend on your business type, turnover and tax regime. These are the main ones.

• Tax on profit: paid on net profit by companies, with a standard rate of 20%
• Minimum tax: a turnover-based minimum charged when profit tax is low or when there is a loss
• Value added tax (VAT): 10% on taxable sales, applies to businesses that exceed the registration threshold
• Withholding tax: tax withheld when paying salaries, rent, services and some payments
• Tax on salary: withheld from employee pay
• Patent tax: annual business tax
• Property and other taxes: depending on your assets and activity

Common filing rhythm

1. Monthly: tax returns for withholding, VAT and prepayment where applicable
2. Annually: profit tax return and patent tax
3. Always: keep invoices, books and supporting documents

Good practices

• Issue proper invoices and keep copies
• Record income and expenses every month
• Separate business and personal accounts
• Meet deadlines to avoid penalties and interest

Tip

hire an accountant or tax agent familiar with Cambodian rules for the first year, and learn from them.

Tax rates, thresholds and incentives change. Confirm with the General Department of Taxation.