What is Your Business Tax Size in Cambodia?

Kong Kimsophat, CEO of Making It Easy, on navigating Cambodia's business tax classifications.

Understanding Cambodia’s business tax system is essential for any entrepreneur or foreign investor planning to start a business in Cambodia. Kong Kimsophat, CEO of Making It Easy Co., Ltd., shares a practical guide on Cambodia tax classifications and compliance, helping new businesses develop a strong tax strategy in Cambodia from the very beginning.

Cambodia Taxpayer Classification: Small, Medium, and Large

In Cambodia, businesses are classified by the General Department of Taxation (GDT) as Small, Medium, or Large Taxpayers depending on their annual revenue and sector. This system defines your tax obligations, filing requirements, and compliance rules.

• Small Taxpayers in Cambodia – usually new businesses and small-scale operations.
• Medium Taxpayers in Cambodia – growing companies expanding their market presence.
• Large Taxpayers in Cambodia – established enterprises with high annual revenue.

The classification depends on two key factors across four sectors (agriculture, services, commerce, and industry):

• Annual Gross Turnover (your business’s yearly revenue)
• Total Assets Invested (the value of assets used in operations)

How The GDT Defines Your Business Tax Size
Small Taxpayer in Cambodia

• For Agriculture, Service, & Commerce Sectors:

Annual turnover: USD 62,500 – 250,000
Assets: USD 50,000 – 250,000

• For Industrial Businesses:

Annual turnover: USD 62,500 – 400,000
Assets: USD 50,000 – 500,000

Medium Taxpayer in Cambodia

• For Agriculture Sector:

Turnover: USD 250,000 – 1 million
Assets: USD 250,000 – 500,000

• For Service & Commerce Sectors:

Turnover: USD 250,000 – 1.5 million
Assets: USD 250,000 – 500,000

• For Industry Sector:

Turnover: USD 400,000 – 2 million
Assets: USD 500,000 – 1 million

Large Taxpayer in Cambodia

• For Agriculture Sector:

Turnover: Over USD 1 million
Assets: Over USD 500,000

• For Service & Commerce Sectors:

Turnover: Over USD 1.5 million
Assets: Over USD 500,000

• For Industry Sector:

Turnover: Over USD 2 million
Assets: Over USD 1 million

Why This Matters
Taxpayer classification is a critical component of your business strategy. It directly affects your:

• Tax obligations, reporting deadlines, and compliance procedures.
• Access to government incentives, such as Qualified Investment Project (QIP) status from the Council for the Development of Cambodia (CDC).

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