How salary tax is worked out in Cambodia

Salary tax (ពន្ធលើប្រាក់បៀវត្សរ៍) is taken from your pay every month by your employer, who pays it to the General Department of Taxation (GDT). It is worked out in riel on monthly bands, even when you are paid in dollars. On a $800 salary it comes to 150,600 ៛ a month. This guide shows the bands, what counts as taxable salary, and that example in full.

The monthly salary tax bands

If you are a tax resident, your taxable salary is cut into slices, and each slice is taxed at its own rate. A higher rate applies only to the part of your salary inside that band, never to the whole salary, so a raise never lowers your take-home pay.

So the first 1,500,000 ៛ of every month's taxable salary is tax-free for a resident.

What counts as taxable salary

Start from your gross monthly salary, the amount before anything is taken off, then:

• Convert it to riel if you are paid in dollars. For tax, employers use the National Bank of Cambodia's official rate published on the 15th of the month (GDT Instruction 26118, 2022). KitMel uses today's official rate, shows it, and lets you change it.
• Take off your NSSF pension contribution, the 2% that comes out of your pay. See NSSF contributions in Cambodia.
• Take off 150,000 ៛ for each dependant you have declared to your employer: usually a spouse with no income, and children under 14, or under 25 and in full-time study. Check with HR who is on your record.

Bonuses and overtime count as salary in the month they are paid. Benefits such as a car or housing are not part of your salary: your employer pays a separate 20% fringe benefit tax on them.

A worked example: $800 a month

At 4,100 ៛ a dollar, $800 is 3,280,000 ៛. With no dependants:

With two dependants, the taxable salary falls to 2,956,000 ៛ and the tax to 120,600 ៛ a month. The calculator uses today's official exchange rate, so its figures may differ a little.

If you are not a tax resident

A non-resident pays a flat 20% on their salary from Cambodia, with no tax-free band and no dependant allowance. KitMel takes the NSSF pension share off before the flat rate, as it does for residents; an accountant is still confirming this.

You are usually a resident if you live in Cambodia or are here for more than 182 days in any 12 months. If you are not sure, ask your employer how they count you.

Working back from take-home pay

A job offer is sometimes quoted as take-home (net) pay. The tax depends on the gross salary, so the gross has to be worked back from the net. The salary calculator does this: under "I know my", pick Net (take-home) and enter the offer.