Cambodian Income Tax: GDT, TIN and Departure Procedures
Cambodia's income tax (Law on Taxation — LoT — as amended, most recently by the Financial Management Laws) is administered by GDT (General Department of Taxation — tax.gov.kh). 2026 income tax rates: 0% (up to KHR 1,500,000/month, about USD 375); 5% (to KHR 2,000,000, about USD 500); 10% (to KHR 8,500,000, about USD 2,125); 15% (to KHR 12,500,000, about USD 3,125); 20% (above KHR 12,500,000/month), at about KHR 4,000 per USD. Cambodia uses monthly-rate brackets — effectively the 20% top rate applies above approximately USD 37,500/year. Fringe Benefit Tax (FBT): employer-provided benefits above specific thresholds may be subject to a 20% FBT. Employment income: withheld at source by employer (monthly salary withholding). Self-employed/business: quarterly tax on profit (TOT — Tax on Profit) at 20%. TIN (Taxpayer Identification Number): Cambodia's tax ID — registered with GDT via e-Filing system (e.tax.gov.kh). Annual return: individual employment income is largely settled via employer withholding; self-employed file annual TOT returns by March 31. On departure: notify GDT of change of address. Obtain a Tax Clearance Certificate (good standing letter) from GDT if required for asset transfers. Non-resident withholding: 14% on dividends; 14% on interest; 14% on royalties from Cambodian sources. Tax residency: Cambodian tax residency if present in Cambodia for 182+ days in a calendar year or if Cambodia is the habitual place of abode. Non-residents: taxed only on Cambodian-source income at withholding rates. Cambodia's tax system is relatively straightforward for employed individuals — the employer withholding covers most obligations.
NSSF and Social Security on Departure
NSSF (National Social Security Fund — nssf.gov.kh): Cambodia's mandatory social security for formal sector employees (enterprises with 8+ employees). NSSF coverage: health (Occupational Risk — OR scheme) and pension. Contributions (pension scheme — phased in): employee 2%; employer 2% (as of 2023; rate has increased progressively since the Pension Scheme launched in 2022). Note: NSSF pension scheme is relatively new — verify current contribution rates at nssf.gov.kh. NSSF pension eligibility: minimum 240 months (20 years) of contributions and age 60. NSSF does not provide a lump-sum refund on departure for Cambodian nationals — contributions create a deferred pension right. For foreign nationals: NSSF's treatment of foreign employee departure has not been extensively tested given the scheme's recent launch — contact NSSF directly for current administrative practice. NSSF Health (Occupational Risk — OR): employer-only contribution of 0.8% for workplace injury insurance — ends on departure. Severance pay: Cambodia's Labour Law (Article 89) requires severance pay of 7.5 days per year of service (Indemnité de Licenciement) paid on termination. For employees on fixed-duration contracts (CDC): specified termination benefits per contract. Contact HR for your specific entitlement. Annual leave: unused annual leave (1.5 days/month of service) payable in cash on departure.
USD Dollarisation and International Transfers
Cambodia is one of the world's most extensively dollarised economies. The USD is the primary currency for: real estate transactions, bank accounts, large retail, most expat salaries, and government tax collection. KHR (Khmer riel) is used primarily for small transactions (below approximately USD 1–2). Exchange rate: KHR 4,000–4,100/USD (approximate — verify at nbc.gov.kh — National Bank of Cambodia). No capital controls: Cambodia does not restrict international transfers for documented legal funds. This is a significant advantage for departing expats — no need for central bank approval. International transfers: Cambodian banks (ABA Bank, Acleda Bank, Canadia Bank, Cambodia Post Bank, BRED Bank) provide international SWIFT transfers. ABA Bank (a leading digital bank) provides particularly convenient USD wire transfers. USD accounts: universally available — effectively everyone uses USD accounts in Cambodia. NSSF/severance proceeds: paid in USD or KHR — USD is standard for most formal employers. For most departing expats: USD bank account + SWIFT wire is straightforward — no conversion loss for USD savings. AML compliance: origin-of-funds documentation required for large international transfers — property sale documentation, employment termination letters.
No Capital Gains Tax and Cambodian Property Market
Cambodia has no personal capital gains tax (CGT) on real estate at the individual level — making it attractive for property investors. This applies to both residents and non-residents for Cambodian property. Property tax: annual property tax (immovable property tax — IPT) of 0.1% of assessed value for properties above KHR 100 million (~USD 25,000) — paid by the property owner. Transfer tax (tax on immovable property transfer): 4% of transfer value payable on sale — split by convention (often buyer pays, but negotiable). Stamp duty included in the 4% transfer tax. Non-citizen ownership restrictions: Cambodia's constitution limits freehold land ownership to Cambodian citizens. Foreigners may own: condominiums/strata-title apartments above ground floor (70% of units in a building can be foreign-owned); long-term leases (up to 99 years for commercial, 50 years residential extendable); nominee ownership (legally risky — not recommended). Cambodian citizenship: some long-term residents pursue Cambodian citizenship (available by investment, generally USD 300,000 and above) to unlock freehold land ownership. LMAP (Land Management and Administration Programme): Cambodia's land titling system has improved significantly — most urban property now has hard title (Serteikat Pheumisastr). Rental income as non-resident: 14% withholding on Cambodian-source rental income received by non-residents. Annual declaration with GDT required.