The Importance of Monthly and Annual Tax Declarations in Cambodia

Understanding and meeting your tax obligations in Cambodia is essential for every business. Failing to comply can result in penalties, interest charges, and administrative issues. Here’s what every business owner should know:

Monthly Tax Declarations
Every business must submit monthly tax returns, which typically include:

• Value Added Tax (VAT)
• Prepayment of Profit Tax
• Withholding Tax

Deadline: The 20th of the following month.
Example: Taxes for March must be filed by April 20.
Timely submissions help you avoid late penalties and interest fees.
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Annual Tax Declarations (Tax on Income – TOI)
The Annual Tax on Income is a key legal obligation for all self-assessment taxpayers (small, medium, and large businesses).

• Standard Tax Rate: 20%
• Filing Deadline: March 31 of the following year (for calendar year-end companies)

Example: 2024’s TOI must be filed by March 31, 2025
Companies with non-calendar fiscal years must file within 3 months after their fiscal year ends.
Late Penalties: 10% additional tax + 1.5% interest per month on any unpaid tax.

Property Tax Declarations
Known as Tax on Immovable Properties (TOIP), this applies to all property owners in Cambodia.

• Rate: 0.1% of the property’s value above 100 million riels (~$25,000)
• Deadline: September 30 each year

Late payments can result in administrative penalties under Cambodian tax law.

Correcting Past Tax Returns
Occasionally, the General Department of Taxation (GDT) allows businesses to amend previous tax declarations without penalty.

• Example: Prakas 071 (issued January 30, 2024) allowed self-assessment taxpayers to correct returns by June 30, 2024.

These windows are limited, so staying informed is key.

Recommendations for Compliance

• Stay Informed: Monitor GDT updates and Prakas announcements.
• Keep Accurate Records: Maintain organized, up-to-date financial documents.
• Hire Tax Professionals: Let experts help you comply and avoid costly mistakes.

Final Thoughts
By staying proactive with your monthly and annual tax filings, you ensure your business runs smoothly, avoids legal troubles, and maintains a strong reputation in Cambodia’s business environment.