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Cambodia: GDT issues guidelines for new salary tax implementation
The General Department of Taxation (GDT) of the Ministry of Economy and Finance (MEF) yesterday issued a set of guidelines for all enterprises that are resident taxpayers, public institutions and non-governmental organisations (NGOs) and have tax obligations to implement the new monthly salary tax from January 2023.
Those enterprise owners are required to file the monthly tax return no later than 20th of the month following the month in which the salary is paid as per the progressive-tax-rate base set in the table of the sub-decree signed by Prime Minister Hun Sen on September 28, 2022, after it had been submitted by MEF Minister Aun Pornmoniroth.
The new sub-decree stipulates that resident employees whose salaries are from 0 riel to 1,500,000 riels would not be taxed, while those who get salaries of 1,500,001-2,000,000 riels, 2,000,001-8,500,000 riels, 8,500,001-12,500,000 riels and more than 12,500,000 riels would be taxed 5 percent, 10 percent, 15 percent and 20 percent respectively.
“For employees/workers of enterprises who get bonuses from work performance in addition to their salaries in the taxed ranges, the bonuses shall be exclusive of the calculation of the salary tax,” the guideline pointed out, adding an example of a worker at a factory who get 2,000,000 riels of salary and 200,000 riels of travel allowances based on the calculation method.
If the worker has a spouse and children total of four persons in his or her burden of family, the amount that shall be exclusive of the calculation of salary tax is 600,000 riels—150,000 riels multiplied by four. Then, the salary tax base would be 1,200,000 riels that are deducted from her or his salary, the exclusive amount and 200,000 riels, which allows the worker to pay salary tax at zero riel as the tax base amount in the range 0-1,500,000 riels.
Civil servants, teachers, physicians and employees-workers who have burdens to raise a child or children and or spouse shall receive a deduction of 150,000 riels per person per month in the calculation based on salary tax for their child in burden and spouse who is household head, which may allow those who are in the range of 1,500,001-2,000,000 riels or about $375-$500 not to pay salary tax if they have such burdens according to the guideline set.
Source: https://www.khmertimeskh.com/501214800/gdt-issues-guidelines-for-new-salary-tax-implementation/