Taxation
The Taxation domain tests applied Cambodian tax compliance under the Law on Taxation (2023) and GDT Prakas. Expect calculations and procedural questions on tax on income, tax on salary, VAT, withholding tax, patent tax and property taxes, plus filing deadlines and penalties.
Core rules
- Tax on income: standard rate 20% on taxable profit; annual return generally due within three months of year-end (31 March for calendar-year taxpayers).
- Tax on salary: monthly progressive rates of 0%, 5%, 10%, 15% and 20% on Cambodia-sourced salary; the employer withholds and remits by the 20th of the following month.
- VAT: 10% standard rate; registration threshold KHR 250 million; output VAT less allowable input VAT; monthly return by the 20th; exports generally zero-rated.
- Withholding tax: 15% on service fees and royalties paid to residents; 14% on Cambodia-sourced payments to non-residents for interest, royalties, rent and services; remit by the 20th.
- Patent tax: annual business registration tax, generally due by 31 January.
- Property: annual immovable property tax at 0.1% above KHR 100 million, due 30 September; stamp duty on transfers generally 4%.
Worked example
A Cambodian company pays a resident consultant $10,000 plus 10% VAT. VAT is $1,000; withholding tax is 15% × $10,000 = $1,500, not 15% × $11,000. The consultant receives $9,500 cash; the company remits $1,000 VAT and $1,500 withholding. The VAT is an input credit if the company is registered; the withholding is a separate tax.
Traps
Applying withholding tax to VAT-inclusive amounts; using 15% for non-residents instead of 14%; claiming input VAT without a valid tax invoice; missing the 20th filing deadline; and confusing salary tax brackets with the annual income tax rate.