Tax on Salary (ToS) in Cambodia

In 3 bullets

• The Tax on Salary (ToS) is withheld at source by the Cambodian employer, on a progressive monthly schedule from 0 to 20% for residents.
• Non-residents (< 183 days/year): 20% flat rate on all Cambodian-source income.
• Fringe benefits (housing, car, meals): 20% flat regardless of status (Fringe Benefit Tax — FBT).

Who is concerned

ToS applies to any pay made for an activity carried out in Cambodia, regardless of where payment is made, provided:

• The employer is Cambodian (Co. Ltd., branch, registered NGO), or
• The activity is physically carried out in Cambodia, even paid by a foreign employer (for tax residents).

Concerned:

• Expat employees of a Cambodian company.
• Foreign directors receiving compensation.
• Remote workers tax-resident in Cambodia — activity exercised there.
• Consultants and freelancers invoicing via a KH entity.

Monthly ToS brackets — residents (Sub-Decree 196 / 2022)

The tax is progressive by bracket (not global): only income above each threshold is taxed at the higher rate.

Example: gross monthly salary 5,000,000 KHR (~1,220 USD)

That’s an average rate of ~6.5% on 5,000,000 KHR.

Example: gross monthly salary 15,000,000 KHR (~3,659 USD)

That’s an average rate of ~11.8% on 15,000,000 KHR.

Non-resident schedule

20% single flat rate on all Cambodian-source income — no brackets, no allowance, no deduction for dependants.

Typical cases:

• Short assignment (< 183 days / 12 months).
• Foreign consultant paid for a one-off mission.
• First year of arrival if you arrive mid-year (you’ll be non-resident year 1, then resident year 2 if you exceed 182 days).

Allowances for dependants (residents only)

A tax resident can deduct from their monthly taxable income:

• 150,000 KHR / month per dependent child < 14 years (or < 25 if full-time student).
• 150,000 KHR / month for a spouse without paid activity.

Proofs to provide to the employer: marriage certificate, birth certificate, school certificate.

Fringe Benefit Tax (FBT) — benefits in kind

Any benefit in kind paid on top of salary is taxed separately at 20% flat, payable by the employer:

• Housing.
• Company car (fuel, maintenance, driver).
• Meals, meal allowance.
• Various allowances (phone, internet, school fees).
• In-kind bonuses (gifts, trips).

The employer declares FBT monthly together with ToS.

How / who pays

You are an employee of a KH company

You have nothing to do: the employer (often via HR or accounting firm):

1. Calculates the monthly ToS on your gross salary (schedule + dependants).
2. Withholds the tax at source.
3. Pays you the net in USD or KHR (as agreed).
4. Remits ToS to the GDT before the 20th of the following month, via the online GDT portal.

You receive a monthly payslip (in practice: variable, many employers only provide a summary).

You are a director or consultant invoicing via your Co. Ltd.

If you are the sole employee of your own company, you calculate and declare yourself (or via a firm):

1. Set the monthly salary you pay yourself.
2. Calculate ToS + any NSSF contributions if the company has 8 employees or more.
3. Declare monthly on the online GDT portal (tax.gov.kh).
4. Pay before the 20th of the following month.

See the company setup guide for setup.

You are paid directly by a foreign employer (remote)

Complex case:

• If KH tax resident: you are liable for ToS in Cambodia on the entirety of your worldwide compensation (see tax residency).
• In the absence of a KH employer entity, you must register with the GDT as a “sole proprietor” and declare quarterly / monthly.
• Many remote workers go through a local firm (50-150 USD/month) that handles declarations.

Declaration and payment

• Frequency: monthly.
• Deadline: before the 20th of the following month after pay.
• Channel: portal tax.gov.kh/en/e-service or ABA Bank / banking partners (integrated payment).
• Document to keep: payment receipt + monthly calculation table, to archive 10 years.

The employer must also file an annual recap declaration before 31 March of the following year (see the patent guide for cumulated annual obligations).

Required documents

To register as an employee with the GDT system:

• Passport + long-stay visa (EB / ER).
• Individual Tax Identification Number (TIN): to request from employer or GDT.
• Dependent proofs: marriage / birth certificates, school certificates.
• Employment contract or company articles for a director.

Common pitfalls

FAQ

What’s the average rate for a “manager” expat salary in Cambodia?

For a monthly salary of 2,500 to 4,000 USD, the resident ToS average rate is around 8 to 12%. On 6,000 USD/month, ~14%. On 10,000 USD/month, ~17%.

Is ToS due on annual bonuses and premiums?

Yes. A bonus paid in May is integrated into May’s taxable income and taxed at the corresponding monthly schedule — which can push up the marginal rate of that month.

And the 13th or 14th month?

Same rules: taxed in the month they’re paid. Cambodian law does not provide annual smoothing as in France. Consequence: a December 13th month is often taxed at 15 or 20%, depending on cumulative total.

How do I declare French dependants in France and Cambodia?

In Cambodia: proofs to the employer (see above). In France: if you are a non-tax-resident, dependants abroad don’t enter the family-quotient calculation on French-source income. See tax residency.

What USD → KHR rate for ToS?

The employer applies the NBC official rate of the pay day (~4,100 KHR/USD, nearly stable). For USD pay, conversion to KHR for ToS calculation, tax payment in KHR to the GDT.

Is ToS due on severance pay?

Yes, end-of-contract indemnities (notice, statutory indemnity) are treated as salary and taxed under ToS. Exceptional negotiated indemnities may benefit from a specific regime depending on their nature — consult a local firm.

I have a France salary + a Cambodia salary, how does that work?

You must declare both:

• In Cambodia: the Cambodian part + (if tax resident) the worldwide part under certain interpretations.
• In France: the French part + depending on your resident/non-resident status, sometimes the worldwide part.

Without a tax treaty, double-taxation risk is real. Consult an FR tax adviser + a KH firm (DFDL, Acclime, VDB Loi…).