Taxes and Tax Schemes in Cambodia | What You Need to Know in 2025

Cambodia, a vibrant Southeast Asian nation with a rapidly developing economy, operates a distinctive tax system that reflects its ongoing economic transformation. Located in the heart of the Indochina peninsula, Cambodia has been implementing progressive tax reforms to attract foreign investment and support economic growth.

The Cambodian economy has shown remarkable resilience and dynamism, with strong sectors including tourism, agriculture, manufacturing, and increasingly, technology and services. The tax system is designed to balance revenue generation, economic development, and international competitiveness.

The expat community in Cambodia continues to grow, attracted by emerging business opportunities, low cost of living, and the country's unique economic landscape. Major cities like Phnom Penh and Siem Reap have become hubs for international professionals and entrepreneurs.

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Cambodian Income Tax

Cambodia employs a progressive personal income tax system with the following characteristics:

Tax brackets for 2025:

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Social security contributions (as of 2025):

• National Social Security Fund (NSSF):
  • Employee contribution: 4.4% of monthly salary
  • Employer contribution: 8.4% of monthly salary
• Covers health insurance, work injury, disability, and pension benefits

If you want to have a better understanding of the taxes you should pay on personal income in Cambodia, you can use the personal tax calculator in the Taxation section of the Cambodia page.

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Cambodian Tax on Overseas Income

Cambodia's approach to foreign income is based on tax residency:

1. Residents: Taxed on worldwide income
2. Non-residents: Taxed only on Cambodia-sourced income

Residency is determined by:

• Spending more than 182 days in Cambodia within a 12-month period
• Having a permanent home in Cambodia
• Maintaining primary economic interests in the country

Special provisions exist for foreign employees, including potential tax exemptions and reduced rates.

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Cambodian Tax on Investments

Investment income receives specific tax treatment:

• Dividends: Generally taxed at 14%
• Capital Gains: Typically taxed at 20%
• Interest Income: Taxed at 15%
• Rental Income: Taxed at progressive income tax rates
• Withholding Tax on Foreign Payments: Varies by type of payment (typically 14-25%)

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Cambodian Corporate Taxation

Corporate taxation is designed to support business growth:

• Corporate Tax Rate: 20%
• Small Business Tax Regime: Simplified taxation for smaller enterprises
• Profit Tax: Applies to most business entities
• Minimum Tax: 1% of gross revenue for businesses not making a profit
• Value Added Tax (VAT):
  • Standard rate: 10%
  • Zero-rated for certain exports and essential goods

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Special Tax Regimes

Cambodia offers several specialized tax arrangements:

1. Special Economic Zones (SEZs): Tax incentives for businesses in designated areas
2. Investment Incentives: Tax holidays and reduced rates for specific industries
3. Export-Oriented Manufacturing Benefits
4. Research and Development Incentives
5. Agricultural and Rural Development Tax Benefits

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Regional Comparison

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Tax Planning for Cambodia

Effective tax management requires a strategic approach:

1. Residency Status Optimization
2. Investment Strategy Alignment
3. Comprehensive Documentation
4. Professional Consultation

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