Cambodia top income tax rate: 20%. Corporate tax: 20% (0% for qualified investment projects up to 9 years). VAT: 10%. Cambodia offers attractive investment incentives and competitive tax rates that appeal to expatriates, entrepreneurs, and regional investors seeking Southeast Asia business bases.
Sources: Cambodia General Department of Taxation; official government sources 2024.
Key Tax Data at a Glance
| Tax Type | Rate | Notes | Source | Year |
|---|---|---|---|---|
| Income Tax — top rate | 20% | Applies to income above 12.5M KHR/month | Official | 2024 |
| Income Tax — lowest rate | 0% | Below 1.5M KHR/month (approximately $375 USD) | Official | 2024 |
| Corporate Tax | 20% | 0% for QIP (Qualified Investment Projects) up to 9 years exemption | Official | 2024 |
| VAT | 10% | Standard rate on goods and services | Official | 2024 |
| Capital Gains Tax | 20% | Applies to property transactions and capital assets (introduced 2021) | Official | 2024 |
| Social Security (employee) | 2.6% | NSSF health contribution; 4% pension rate when phased in | Official | 2024 |
| Digital Nomad Visa | No | E-visa or tourist visa common for remote workers; business visa available | Official | 2024 |
| Territorial Taxation | No | Worldwide income for residents; limited enforcement for foreign nationals | Official | 2024 |
Income Tax Brackets
Cambodia applies a progressive income tax system to residents. Foreign nationals working in Cambodia are typically taxed on Cambodia-sourced income. Personal exemptions and deductions apply, including housing allowances for foreign employees. The tax year follows the calendar year.
| Monthly Income (KHR) | Monthly Income (USD approx.) | Tax Rate |
|---|---|---|
| 0 — 1.5M | 0 — $375 | 0% |
| 1.5M — 2M | $375 — $500 | 5% |
| 2M — 8.5M | $500 — $2,125 | 10% |
| 8.5M — 12.5M | $2,125 — $3,125 | 15% |
| Above 12.5M | Above $3,125 | 20% |
Corporate Tax
Cambodia levies a flat corporate tax rate of 20% on business profits. However, Qualified Investment Projects (QIP) registered with the Council for the Development of Cambodia (CDC) can receive a 0% corporate tax exemption for up to 9 years, making Cambodia highly attractive for foreign investors in priority sectors including technology, manufacturing, agriculture, and infrastructure. Reinvested profits may benefit from additional incentives.
VAT & Consumption Taxes
The standard VAT rate is 10% on most goods and services. Certain essentials including rice, basic medicines, and education may benefit from exemptions or reduced treatment. VAT registration is mandatory for businesses with annual turnover exceeding 100M KHR.
Capital Gains & Investment Income
Capital gains tax of 20% applies to profits from the sale of assets, particularly real property and investments. This tax was formally introduced in 2021 as Cambodia sought to regulate property market growth. Dividends from foreign-source investments may face withholding tax depending on treaty status. Long-term holding periods or reinvestment may offer relief in specific contexts.
Social Security
Employees contribute 2.6% to the National Social Security Fund (NSSF) for health coverage. A pension contribution of 4% is being phased in. The government matches employee contributions, and both health and pension provide baseline coverage for Cambodia-based workers. Foreign employees should verify employer compliance with NSSF registration.
Frequently Asked Questions
How much tax do expats pay in Cambodia?
Expat tax in Cambodia depends on residency status and income source. Most expats working for Cambodia-based employers pay personal income tax on Cambodia-sourced income at progressive rates (0–20%). Housing allowances and certain deductions apply. Self-employed expatriates face similar brackets; freelance income is taxed as business revenue. Overall tax burden for expats is relatively low compared to Western countries.
Does Cambodia tax foreign income?
Cambodia taxes worldwide income for tax residents (typically individuals present more than 183 days per year). However, enforcement for foreign-source income is limited, especially for expats receiving foreign pensions or remote work income outside Cambodia. Foreign-source employment income may face different treatment depending on work permits and bilateral tax treaties.
Is Cambodia a tax haven?
Cambodia has relatively low tax rates (20% top income, 20% corporate, 10% VAT) and offers attractive investment incentives like the QIP exemption, making it tax-efficient compared to many developed nations. However, it is not formally classified as a tax haven by international standards. Tax administration and treaty network are developing, and reporting requirements for foreigners are increasing.
What taxes do freelancers pay in Cambodia?
Freelancers and self-employed individuals in Cambodia are taxed on net business income at the same progressive rates (0–20%) as salaried employees. Annual business registration is required, and quarterly or annual tax filings depend on business size and structure. Many digital nomads operate under informal arrangements; formalization provides legal protection and may reduce audit risk.
How does Cambodia compare to Thailand and Vietnam for taxes?
Cambodia’s top personal income tax (20%) is lower than Thailand (35%) and similar to Vietnam’s top brackets. Cambodia’s 10% VAT is higher than Vietnam’s 10% but lower than Thailand’s 7% standard rate. Cambodia’s QIP corporate tax exemption is more generous than Thailand or Vietnam. Overall, Cambodia offers the most attractive tax environment for foreign-sourced income and investment in Southeast Asia.
Explore Further
Related Tax Guides
Cost of Living
Sources: Cambodia General Department of Taxation; Council for the Development of Cambodia (CDC); official government fiscal data 2024. Rates verified April 2026. Not financial advice — consult a qualified tax professional for individual situations.