Other BriefingsCambodia Introduces New Income Tax Thresholds for 2023
Cambodia has introduced new income tax thresholds for 2023 under Sub-Decree 196. The decree will determine the taxable income earned by physical persons, sole proprietorships, and the distributive share of partners in a partnership, as well as for determining the monthly taxable salaries received by resident employees.
The new thresholds will come into effect from January 1, 2023.
New annual income tax thresholds for physical persons, sole proprietorships, and partnerships
|
Threshold of income subject to annual tax |
Tax rate (%) |
|
0 riel to 18,000,000 riel (US$4,344) |
0 |
|
18,000,001 riel (US$4,345) to 24,000,000 riel (US$5,739) |
5 |
|
24,000,001 riel (US$5,795) to 102,000,000 riel (US$24,629) |
10 |
|
102,000,001 riel (US$24,625) to 150,000,000 riel (US$36,214) |
15 |
|
Over 150,000,000 riel (US$36,214) |
20 |
New monthly tax thresholds on income for salaries received by resident employees
|
Threshold of income subject to annual tax |
Tax rate (%) |
|
0 riel to 1,500,000 riel (US$361) |
0 |
|
1,500,001 riel (US$362) to 2,000,000 riel (US$482) |
5 |
|
2,000,001 riel (US$483) to 8,500,000 riel (US$2,050) |
10 |
|
8,500,001 riel (US$2,050.74) to 12,500,000 riel (US$3,739) |
15 |
|
Over 12,500,000 riel (US$3,739) |
20 |
Foreign businesses should use the services of established professional services firms to ensure their HR administration is in line with the decree.
New minimum wage
In addition to the mentioned new income tax thresholds, Cambodia’s government has agreed to increase the minimum wage for the country’s textile, garment, and footwear (TGF) industries to US$200 per month from the current US$194 per month. Unlike other countries, the minimum wage in Cambodia applies only to specified industries.
The new salary will be effective from January 1, 2023.
What other benefits do workers receive?
In addition to the minimum wage, workers will also receive the following benefits:
- Attendance bonus — US$10 per month;
- Travel and accommodation expenses — US$7 per month;
- Meal allowances — US$0.50 per day; and
- Overtime and seniority bonus — US$2-US$11 per month for those between their second to the eleventh year of work.
Also Read:
- An Alternative Path to Market Entry in Asia – PEO in China, Vietnam, Singapore, Indonesia, and India
- Cambodia Increases Minimum Wage for Textile and Garment Sectors for 2023
- Complete HR and Payroll for Asia Powered by the Cloud and Our Experts
About Us
ASEAN Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia and maintains offices throughout ASEAN, including in Singapore, Hanoi, Ho Chi Minh City, and Da Nang in Vietnam, Munich, and Esen in Germany, Boston, and Salt Lake City in the United States, Milan, Conegliano, and Udine in Italy, in addition to Jakarta, and Batam in Indonesia. We also have partner firms in Malaysia, Bangladesh, the Philippines, and Thailand as well as our practices in China and India. Please contact us at asia@dezshira.com or visit our website at www.dezshira.com.
