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Hey,

I am thinking of transferring my savings here to cambodia (approximately USD 60,000) as the interest rates here are pretty good . I do understand there is an inward remittance charge of USD 10, i just wanted to know if there is any tax liability on that amount that i have to pay to the Cambodian government, if i just decide to keep it in my savings account or as a fixed deposit?

Thanks

You’ll pay 12% if you’re a non resident (been here less that 6 months) or 6% tax otherwise on interest earned.

Your bank will also charge a fee. Best use a Forex company.

so if i use a forex company, i will be getting that amount in cash, which i would than deposit in the bank here... in that case, would i not have to pay the 12% non resident tax?

You’ll still pay for the transfer but it’ll be on the (favourable) exchange rate (also I’m not sure you can set up an account outside the US).

You’ll only pay tax on the interest you earn not the initial deposit.

Also, you won’t get “cash” it will have to be deposited into a bank.

I hope you have more cash or income. The max you’ll get (on $60k) is under $400 per month month, less tax.

Not quite accurate. The inwards remittance fee for all the banks I have seen is a percentage with a minimum of $10. If I recall the last time I did $60,000 the fee was around $70. Most banks seem to be around 1.25%. Some banks (Acleda) charge 1.25% then another 1.25% to send from Phnom Penh to Siem Reap. The ANZ is worst with a fee of 3%. I asked them if they would seriously charge me $3000 for an inwards remittance of $1,000,000 and they confirmed that they would.

Withholding tax as stated above is only for interest earned not for remittances.

I think I got my decimals wrong - try 0.125%.

It’s not tax is a fee.