TL;DR: In Cambodia, you become a tax resident if you stay more than 182 days in a calendar year (Law on Taxation, Art. 3). Tax residents are taxed on worldwide income under a progressive scale up to 20%. Non-residents pay a flat 20% only on Cambodia-sourced income. A foreign tax credit mechanism (Art. 36) prevents double taxation.

Cambodia Tax Residency: 183-Day Rule, Worldwide Income & Salary Tax Rates

Updated: 2025. This article is for informational purposes only. For individual tax planning, consult a licensed tax adviser in Cambodia.

Who Qualifies as a Tax Resident in Cambodia?

Under Articles 2–3 of the Law on Taxation (official text, CDC portal), an individual is a tax resident if they:

  • have a domicile or principal place of abode in Cambodia, OR
  • spend more than 182 days in Cambodia during a calendar year.

The practical threshold: 183+ days = automatic tax resident, regardless of nationality or visa type. This is relevant for real estate investors, long-stay visa holders (E-series, Cambodia My Second Home / CM2H), and anyone managing property on the ground.

Resident vs Non-Resident: What Changes for Your Tax Bill?

Status Tax Base Salary Tax Rate
Tax Resident Worldwide income Progressive: 0–20%
Non-Resident Cambodia-sourced income only Flat: 20%

A resident must declare all income globally — including rental income from properties abroad, foreign dividends, and overseas bank interest — to the General Department of Taxation (GDT).

A non-resident is taxed only on income with a Cambodian source, such as rent from a Cambodian property or a locally-paid salary.

Progressive Salary Tax Scale: Exact Numbers

Tax on Salary is calculated monthly on a bracket basis (Art. 47, Law on Taxation):

Monthly Income (KHR) Approx. USD* Rate
0 – 500,000 $0 – $122 0%
500,001 – 1,250,000 $122 – $305 5%
1,250,001 – 8,500,000 $305 – $2,075 10%
8,500,001 – 12,500,000 $2,075 – $3,050 15%
Over 12,500,000 Over $3,050 20%

Exchange rate used: 1 USD ≈ 4,100 KHR (approximate).

Example: a tax-resident professional earning $2,000/month pays an effective rate well below 10% due to the bracket structure — while a non-resident earning the same pays a flat 20% from the first riel.

Worldwide Income & Double Taxation: The Real Risk for Foreign Investors

For foreign nationals who qualify as Cambodian tax residents, the worldwide income scope can sound alarming. If you own a rental apartment in Europe or hold shares in a US brokerage, Cambodia technically has a legal basis to tax that income.

In practice, two protections apply:

  1. Foreign Tax Credit (Art. 36) — taxes already paid abroad on the same income are credited against your Cambodian tax liability. You don't pay twice in cash; you reconcile.

  2. Double Tax Agreements (DTA) — Cambodia has signed DTAs with several countries including Russia and Thailand. When a DTA applies, it overrides domestic law and allocates taxing rights between the two jurisdictions.

Honest caveat: GDT enforcement of worldwide income for foreign residents remains relatively light in practice. However, the legal exposure is real — particularly as Cambodia modernises its tax administration. Investors acquiring property should structure their affairs before transactions, not after.

How Does Tax Residency Affect Cambodian Real Estate Investment?

Tax status directly impacts your net yield calculations:

  • Rental income tax: residents pay 10%; non-residents pay 14% (governed separately under the rental income provisions).
  • Salary for local staff or yourself as a director: withheld under the progressive Tax on Salary scale.
  • Foreign income of the owner: theoretically in scope for residents, but shielded by foreign tax credit and applicable DTAs.

The key takeaway: determine your tax residency position before closing on a property purchase or signing a lease agreement — not after your first rent cheque arrives.

FAQ

Q: Does the 183-day rule apply to tourist visa holders too? A: Yes. The Law on Taxation does not link tax residency to visa category — only to physical presence. Spending 183+ days on a tourist visa still triggers resident status. The type of visa (tourist, business, EB, CM2H) is irrelevant to the tax residency test.

Q: What is the maximum personal income tax rate in Cambodia? A: The top marginal rate is 20%, applied to the portion of monthly income exceeding 12,500,000 KHR (~$3,050). The scale is progressive, so only the income above each threshold is taxed at the higher rate.

Q: If I own property in another country and become a Cambodian tax resident, do I need to report that rental income? A: Legally yes — worldwide income is in scope. However, the foreign tax credit (Art. 36) allows you to offset taxes paid in the source country. If Cambodia has a DTA with that country, treaty rules apply. A qualified tax adviser should review your specific situation.

Q: Does Cambodia have a tax treaty with Russia? A: Yes, Cambodia and Russia have a Double Tax Agreement in force. It allocates taxing rights across income types and protects against full double taxation for Russian nationals investing in Cambodia or Cambodian residents with Russian-source income.

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