Tax Figures

Corporate Income Tax

20%, with the exception of mining companies (taxed at 30%), and insurance gross premiums (taxed at 5%).

Income Tax Rate

  • KHR 0 – 500,000: 0%
  • KHR 500,001 – 1,250,000: 5%
  • KHR 1,250,001 – 8,500,000: 10%
  • KHR 8,500,001 – 12,500,000: 15%
  • KHR 12,500,001 and above: 20%

Non-residents are taxed a flat rate of 20% on all Cambodian-sourced income.

Payroll Tax


Sales Tax

10% VAT

Withholding Tax

Withholding taxes include the following:

  • Payment for services to a physical person: 15%
  • Payments of royalties for intangible assets and interests in minerals, oil, or natural gas: 15%
  • Interest payments: various rates depending on the recipient
  • Income from rental or moveable or immovable property: 10%

Income Tax (Personal Allowance)


Time to prepare and Pay Taxes

173 Hours

Employers Social Security and statutory contributions

Employers are required to contribute 3.4% of the average monthly wage of workers to the National Social Security Fund (NSSF).

Employees Social Security and statutory contributions

Employees do not make any contribution to the NSSF.


Remote Payroll

A remote payroll in Cambodia is where a foreign company, i.e. a non-resident company, payrolls a resident employee in Cambodia. Many businesses with branches in Cambodia do not require payroll services all year round and therefore choose to outsource them to a remote payroll. Remote payroll services must complete the initial registration of companies and employees before going on to prepare monthly payroll and other required services.

Local Payroll Administration

In some cases, a company will register their business in Cambodia under one of the various business entity types available, but may prefer to have another company administer its payroll.  This can be accomplished through a payroll provider. It is important to note that the company, as the Employer of Record, is still fully responsible for compliance with employment, immigration, tax and payroll regulations. But the payroll calculations, payments and filings can all be outsourced to the payroll provider.

Internal Payroll

Larger companies with significant business involvement in Cambodia may wish to run their own local payroll for all employees, foreign and local. In order to accomplish this, they will have to complete incorporation, register the business and then hire the necessary staff. There will be a need for in country human resources personnel who have the background needed to manage a Cambodian payroll, and can fulfill all tax, withholding, and payroll requirements.

This approach carries significant cost and requires some knowledge of local employment and payroll regulations. The company will need a local accounting firm and potentially legal counsel to ensure full compliance with Cambodian employment laws.

Setting up payroll in Cambodia


The official currency is the Cambodian Riel (KHR), although the US Dollar is used almost as frequently, if not more so, than the Riel.

Employee Information Required

Before payroll ledgers can be used, they must be numbered and initialed by the Labor Inspector. It must record:

  • Information about each worker employed by the enterprise, including name, date of birth, and address.
  • All indications concerning the work performed, wage and holidays.

Tax Registration Requirements

The following documents must be provided to the General Tax Department:

  • Memorandum and Articles of Association
  • Ministry of Commerce Letter of Approval
  • Certificate of Incorporation

This is obtained at one of the tax department branch offices at the Khan (district) level, of which there are 7 in each city. Businesses must then submit a written declaration to the Ministry of Labour.

Social Security Registration

The application form for the National Social Security Fund must be submitted, along with:

  • Relevant personal information such as name, address, date of birth, etc.
  • A list of the employees to be registered with the NSSF

Documentation Required for New Employees

The following documentation is required for new employees:

  • Employment contracts
  • Employment handbooks
  • Work permits for foreign workers
  • Evidence of established internal regulations, stipulating calculation and payment of wages, working hours, health and safety measures, and personal leave

Payment Mode

Direct bank account payment is the most common method.

Frequency of Salary Payment

26 fortnightly salary payments are stipulated by the Labour Code.

Invoice / Payslips required

Payslips must be distributed to staff before money is transferred to their account, written in both Khmer and English.

Minimum Wage

At present, a minimum wage is only applicable for the garment, textiles and footwear industry, which is $66 per month.