Income tax is imposed on resident taxpayer for income from Cambodian sources and from foreign sources. For a non-resident taxpayer, the income tax applies only to Cambodian source income. Taxable income is the net income that results from all types of business operations, including capital gains achieved during business or business termination, as well as income from financial or investment assets, wages and royalties. Taxable income also includes all capital gains from real estate, financial assets, or investment property achieved from operations other than business operations.
The annual income tax rates are as follows:
- 20% for the income by a legal entity
- 30% on the revenue from oil and natural gas distribution, the exploitation of natural resources, including forests, gold, or precious stones
- 0% of eligible income from project investment within the tax exemption period set by the Council for the Development of Cambodia (CDC)
- In accordance with the table of tax rates, the following shall be achieved for the income by the physical person, the enterprise and the shares allocated to each member of the joint-venture that is not considered a legal entity:
For enterprises with significant activities in the insurance, property or other risks, the income tax shall be as follows:
- 5% of gross premiums received during the tax year for any insurance or reinsurance of property or other risks in the Kingdom of Cambodia.
- For life insurance or life insurance activities other than property insurance or reinsurance; or Other Risks Income tax is regulated under Article 20 (1)