I. How many types of taxpayers are in there Cambodia? What are they?
There are three types of taxpayers in Cambodia.
Small taxpayers
Medium taxpayers
Large taxpayers
II. How to define taxpayers in Cambodia?
Small taxpayers
Annual income from 250 Millions KHR to 700 Millions KHR or
Earn income 60 Millions KHR in within 3 months or
Expected to earn 60 Millions KHR in within 3 months or
Involved with bidding.
Medium taxpayers
Annual turnover from 700 Million KHR to 4 000 Million KHR or
Registered companies or legal entities or
Government and Sub-national government institutions, associations and non-government organizations or
Foreign diplomatic and consular missions, international organizations and agencies.
Large taxpayers
Annual turnover exceeds 4000 Million KHR or
Branch of foreign companies or
Enterprises registered as Qualified Investment Project (QIP).
III. Tax Obligations
Small taxpayers
Register with tax administrations within 15 (fifteen) working days after carrying out the operation or reception of approval letter of registration
Maintain simplified books of account: this will help small enterprises or family businesses to record daily transactions and the books of account include book of purchase, book of sale, and book of stock.
Submit tax declaration and pay various taxes as follows:
Monthly tax (pay tax and submit tax declaration from 01st to 20th of the following month)
Withholding tax: taxpayers is exempted from withholding agent obligation except withholding tax on movable property and immovable property rental at the rate of 10%
Prepayment on profit tax: prepayment shall be paid monthly at the rate of 1% of turnovers inclusive of various taxes except values added tax
Value Added Tax: shall be paid each month allowed input tax credits 80% for calculation with the output tax, even if accompanied with or without invoices
Tax on salary: for any enterprise that carry employment activities
Annual tax
Stamp tax: for logos and advertising signs based on the reality of business
Patent Tax: 400, 000 (four hundred thousand) Riel each business activity per year
Income tax: taxable income of any year shall be calculated on a formula: net profits of the year deduct costs of goods/services sold, expenses, and non-current assets installments.
Minimum tax: is determined at the rate of 1% of annual turnovers inclusive all taxes except VAT.
Other taxes: taxpayers shall pay all taxes based on business reality
Medium & Large taxpayers
Register with the tax administration
File tax returns and provide information as required by the tax provisions
Pay taxes by the due date
Keep and maintain books of account, legal documents, and other documents and present them to the tax administration
Present to the tax administration according to the date specified in the letter of notification of the tax administration
Pay taxes, additional taxes, and interest as determined by the tax administration by the date as stated in the tax provisions or as notified in writing by the tax administration
Be truthful in fulfilling tax obligations
Be cooperative with the tax administration in order to meet tax obligations