Salary Tax in Cambodia 2025: Guide & Calculation Tips

Whether local residents or foreigners, everyone earning money has to manage complicated salary tax in Cambodia. Given changes to tax rules in 2024, understanding your obligations becomes even more important. Covering tax on pay in Cambodia computation, how it is calculated, and significant changes for the new year will guarantee you remain compliant while optimizing your financial well-being.

Understanding Salary Tax in Cambodia

Designed to support government services and infrastructure, Cambodia salary tax in Cambodia is a basic element of the personal income tax system of the country. It covers any income made in Cambodia, regardless of residency status; but local and expat rates and thresholds may differ. Employers are liable for directly deducting this tax from staff earnings and forwarding them to the General Department of Taxation (GDT). 

Higher rates applied to higher income ranges reflect a progressive approach of the tax system. This guarantees equity in contributions and gives people chances to properly budget their money. Understanding these rates and the deductions requirements helps taxpayers to properly negotiate their responsibilities. 

Tax Salary in Cambodia: An Overview

Apart from a normal wage, the tax salary in Cambodia consists of bonuses, incentives, and allowances. Some exemptions could reduce taxable income: social security benefits linked to employment or gifts made. The taxable amount is controlled by progressive tax rates running 0% for low-income taxpayers and 20% for high-income earners. 

Income of 1,200,000 KHR—about $300—is tax-free, for example; higher income is taxed gradually at rates of 5%, 10%, and up to 20%. 

Business monthly reports to the GDT guarantee compliance and proper tax collecting. 

Tax on Salary in Cambodia 2024

The Tax on Salary in Cambodia for 2024 continues to operate on a progressive tax system, where higher income levels are subject to higher tax rates. This system ensures fairness by adjusting the tax burden according to each employee’s earnings. Below is the updated breakdown of taxable salary brackets and corresponding rates:

1. Income up to 1,200,000 KHR (approximately $300) — Tax-exempt.
2. Income from 1,200,001 KHR to 2,000,000 KHR (around $300 to $500) — taxed at 5%.
3. Income from 2,000,001 KHR to 8,500,000 KHR (around $500 to $2,125) — taxed at 10%.
4. Income from 8,500,001 KHR to 12,500,000 KHR (around $2,125 to $3,125) — taxed at 15%.

5. Income above 12,500,000 KHR (over $3,125) — taxed at 20%.

    

In 2024, Cambodia’s General Department of Taxation (GDT) continues to encourage digital filing and transparent reporting, simplifying compliance for both local employees and foreign workers. Employers are responsible for calculating, withholding, and submitting taxes on behalf of their staff each month.

Key Changes to Tax on Salary in Cambodia 2025

In 2025, Cambodia continues to refine its Tax on Salary system to promote fairness and align with rising income levels. The calculation remains progressive, meaning tax rates increase as income grows. Below is the updated breakdown for 2025:

1. Monthly income up to 1,500,000 KHR (approximately $375) — Tax-exempt.
2. Income from 1,500,001 KHR to 2,000,000 KHR (around $375 to $500) — taxed at 5%.
3. Income from 2,000,001 KHR to 8,500,000 KHR (approximately $500 to $2,125) — taxed at 10%.
4. Income from 8,500,001 KHR to 12,500,000 KHR (around $2,125 to $3,125) — taxed at 15%.
5. Income exceeding 12,500,000 KHR (over $3,125) — taxed at 20%.

For 2025, the General Department of Taxation (GDT) continues enhancing digital filing systems and online payment options, making salary tax compliance more efficient for both employers and employees. The focus remains on transparency, accuracy, and convenience in Cambodia’s evolving tax framework.

Example Calculation for 2024:

For an individual earning 3,500,000 KHR per month:

- First 1,500,000 KHR: Tax-exempt.

- Next 500,000 KHR (1,500,001 to 2,000,000): Taxed at 5% = 25,000 KHR.

- Next 1,000,000 KHR (2,000,001 to 3,000,000): Taxed at 10% = 100,000 KHR.

- Remaining 500,000 KHR (3,000,001 to 3,500,000): Taxed at 10% = 50,000 KHR.

Total Tax Payable: 25,000 + 100,000 + 50,000 = 175,000 KHR.

The Role of Type of Tax in Cambodia

Understanding the main type of tax in Cambodia helps one to grasp how the salary tax of Cambodia fits the national tax structure. Among other interesting taxes are value-added tax (VAT), property tax, and corporate income tax. These taxes support major services and stimulate economic development since they all contribute to the income sources of the government. 

Correctly reporting their fair tax payment remains the main concern for compensated individuals. Understanding how salary tax interacts with other taxes allows individuals to avoid mistakes and achieve complete compliance. 

How to Calculate Tax on Salary in Cambodia

In Cambodia, tax on salary in Cambodia depends on the computation of it. The process consists in establishing taxable income, applying appropriate deductions, and consulting progressive tax bands.

How to Calculate Tax on Salary in Cambodia: 

- Estimate gross income including bonuses, benefits, and all wages.

- Deduct allowed expenses including defined exclusions or social security payments.

- Calculate the appropriate tax rate depending on income level.

Using the updated tax tables for 2024, a monthly salary of $2,500 would be taxed as follows:

- The first $300 (tax-free threshold) is exempt.

- The next $500 is taxed at 5%.

- Subsequent income is taxed at higher rates incrementally.

This progressive approach ensures that people with higher income engage more and protects low-income workers from needless financial load. 

Salary Tax in Cambodia for Expats

Particularly in terms of residency requirements and qualifying exemption, the salary tax in Cambodia for expats can cause particular challenges. This progressive approach ensures that people with higher income engage more and protects low-income workers from needless financial load. 

Foreigners' Salary Tax in Cambodia

Particularly in terms of residency requirements and qualifying exemption, the salary tax in Cambodia for expats can cause particular challenges. If expats visit Cambodia more than 182 days throughout the fiscal year, they are considered tax residents. Non-residents, however, pay more taxes and have less deductions. 

Determining the extent of taxable income depends much on tax residence. Whereas non-residents are solely taxed on income generated within Cambodia, residents are taxed on worldwide income. Expats trying to legitimately reduce their tax obligations depend on knowing these differences. 

Challenges in Tax Compliance and How to Address Them

Following tax on salary in Cambodia means negotiating a spectrum of legal and administrative obligations. Typical difficulties include knowing deductions, completing filing deadlines, and handling expatriate cross-border tax responsibilities. 

Taxpayers should: 

1. Remain informed about regulatory updates via credible sources in order to help to overcome these obstacles. 

2. File your taxes correctly using expert accounting services. 

3. Use internet tools developed by the Cambodian tax authorities for expeditious handling. 

These actions not only streamline compliance but also lower the possibility of penalties for late or erroneous files. 

Why Salary Tax Compliance is Important

Following Cambodia salary tax not only satisfies legal responsibilities but also benefits the country. Taxes support public services, infrastructure projects, and social initiatives, therefore promoting national stability and progress. Compliance guarantees individuals peace of mind and helps them to avoid fines resulting from non-compliance. 

Following rules helps both citizens and expatriates to support the larger objectives of the Cambodian government while preserving their financial stability. 

Conclusion

Individuals and companies doing business in Cambodia must understand and control salary tax Cambodia. More than ever, changes in tax brackets, better internet systems, and specific laws for foreigners determine if one is alert and proactive. Navigating the intricacy of the Cambodian tax system effectively requires taxpayers to be masters of computation, follow filing guidelines, and seek professional guidance when necessary.

Frequently Asked Questions

1. What is the current income tax rate in Cambodia for 2025?
Cambodia applies a progressive income tax rate ranging from 0% to 20%, depending on monthly earnings. Higher income levels are taxed at higher rates under the latest tax brackets.

2. How can employees calculate their income tax in Cambodia?
To determine your tax, subtract eligible deductions and allowances from your gross income, then apply the progressive tax rate based on your income level. Many employers use digital payroll systems for accurate calculations.

3. Does Cambodia tax foreign income for expats?
Yes. Tax residents in Cambodia are taxed on both local and global income, while non-residents are only taxed on income earned within Cambodia. Residency is determined by the number of days spent in the country.

4. What are the key income tax reforms in Cambodia for 2025?
Recent updates include revised tax brackets, new taxable benefit categories, and enhanced online tax filing systems for greater transparency and convenience.

5. What deductions are available under Cambodia’s income tax system?
Employees can claim deductions for dependents, social security contributions, and specific allowances outlined in employment contracts or under the General Department of Taxation (GDT) guidelines.