Operating a business in Cambodia presents numerous opportunities for growth and expansion, but it also comes with the responsibility of understanding and complying with the country’s tax regulations. The tax requirements that should be considered when conducting business in Cambodia are outlined here:  

Corporate Income Tax (ToI)

Corporate Income Tax (ToI) is a crucial tax that businesses in Cambodia must pay on their taxable income. The ToI rate ranges from 0% to 30%, depending on the company’s income.

Withholding Tax (WHT)

Withholding Tax (WHT) is applicable to various payments made to residents and non-residents. The WHT rate ranges from 10% to 14%, depending on the nature of the payment. Payments subject to WHT include interest, royalties, rent, and payments for services.

Value-Added Tax (VAT)

Value-Added Tax (VAT) is a consumption tax charged on the supply of goods and services in Cambodia. The standard VAT rate is 10%.

Tax on Salary (ToS) / Fringe Benefits Tax (FBT)

Tax on Salary (ToS) or Fringe Benefits Tax (FBT) in Cambodia is calculated based on a progressive scale, where the tax rate increases as the total salary income of the employee rises. The ToS/FBT rate is described as having progressive rates ranging from 0% to 30% of the total salary income of the employee.

Navigating Cambodia’s’ tax landscape can be intricate, especially for businesses unfamiliar with local regulations. Seeking guidance from experienced tax advisors or consulting firms like FocusCore Cambodia can provide invaluable support in understanding tax obligations, optimising tax planning strategies, and ensuring compliance with the laws.

With the right guidance and expertise, businesses can effectively manage their tax responsibilities and focus on driving growth and success in the Laos market. Contact FocusCore Cambodia today to explore how we can assist you in navigating Cambodia’s tax regulations and optimising your business operations for success.