How to pay tax in cambodia

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kerberus
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How to pay tax in cambodia

Post by kerberus » Fri Jul 26, 2019 4:02 pm

Sometimes i get a bit headache with cambodia. This week i learned i have to pay around 500 USD for the business registration AND 500 USD for the tax registration. Its really funny that i have to pay a fee cause i want to pay taxes :lol:

But beside of that i have no idea about the paperwork with taxes, maybe someone can help me a bit out:

If you have a company:
You have to make "full" accounting or you can make an "easy accounting" like expenses and income
How much does a tax office charge?
Is it hard to fill the documents by yourself?

If you dont have a company:
I read you have to pay 10-20% income tax of your worldwide income
You can fill the forms easy by yourself?
You have to pay the tax on the gross income (before the tax of other country) or at the net income (after tax of other country)? Double Tax Agreements are sadly not available
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jah steu
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Re: How to pay tax in cambodia

Post by jah steu » Fri Jul 26, 2019 4:13 pm

Before you pay anything check the amounts with another person.
Business registration is not usually $500. It’s less than $300. Same for tax registration. I would guessyou are being quoted barang prices.
Yes there is always someone who will help you. For a fee. You can ask a tax clerk at the tax office. Many of them do private work helping people with their tax.


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Adam Xie
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Re: How to pay tax in cambodia

Post by Adam Xie » Fri Jul 26, 2019 4:30 pm

Just a brief answer to your question above:

1. If you have a company
It will be a bit hard for foreigner to do this on their own, but if you good at Khmer language you can give a try, but be prepared, this is not going to be a enjoyable expreience.

Usually for company owners, tax agency is usually hired for this type of job, current market price of tax agent is ranging from USD300-USD1000/month depend on your company size and what type of agency are they, if they are local, you are likely to get lower price (for International firms like DFDL, they can charge you starting form USD500/month for this kind of work).

2. If you don't have a company:
since My experience is mainly with Medium and large size company, I do not have personal experience with this, but based on my friend experience, who runs a tranditional cake shop near old market, they hire tax officer responsible for their area to do this for them, and fee is not high (to foreigners may be they charge more than they do for Khmer, but still not much compare the time you gonna spend by yourself)







2.
pczz
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Re: How to pay tax in cambodia

Post by pczz » Sun Jul 28, 2019 1:11 pm

kerberus wrote:
Fri Jul 26, 2019 4:02 pm
Sometimes i get a bit headache with cambodia. This week i learned i have to pay around 500 USD for the business registration AND 500 USD for the tax registration. Its really funny that i have to pay a fee cause i want to pay taxes :lol:

But beside of that i have no idea about the paperwork with taxes, maybe someone can help me a bit out:

If you have a company:
You have to make "full" accounting or you can make an "easy accounting" like expenses and income
How much does a tax office charge?
Is it hard to fill the documents by yourself?

If you dont have a company:
I read you have to pay 10-20% income tax of your worldwide income
You can fill the forms easy by yourself?
You have to pay the tax on the gross income (before the tax of other country) or at the net income (after tax of other country)? Double Tax Agreements are sadly not available
It all depends onwhat size and type of company and turnover. Small businesse get a different regime to limited companies. i suggest you get some advice form another expat inthe smae line of business.
Cambodians have to pay tax on their worldwide income, foreigners do not, generally. Cambodia has tax treaties with some countires and informal arrangements with others.
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A10
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Re: How to pay tax in cambodia

Post by A10 » Sun Jul 28, 2019 2:28 pm

pczz wrote:
Sun Jul 28, 2019 1:11 pm
Cambodians have to pay tax on their worldwide income, foreigners do not, generally. Cambodia has tax treaties with some countires and informal arrangements with others.
What? Is this one of those laws on the books that is never enforced? This is the first I've heard of that as I thought only America taxed on citizenship, not residence.
pczz
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Re: How to pay tax in cambodia

Post by pczz » Sun Aug 25, 2019 7:21 pm

A10 wrote:
Sun Jul 28, 2019 2:28 pm
pczz wrote:
Sun Jul 28, 2019 1:11 pm
Cambodians have to pay tax on their worldwide income, foreigners do not, generally. Cambodia has tax treaties with some countires and informal arrangements with others.
What? Is this one of those laws on the books that is never enforced? This is the first I've heard of that as I thought only America taxed on citizenship, not residence.
No, its actually the other way round. italy and Spain and greece also charge residents on worldwide income, except where there is a dual taxation treaty between the countries. in the that case usually you pay tax in the country you earn the money and that is offset against the tax in the other.
For example thet tax rate in uk is 20% and i live in a country with dual taxation agreement with the uk. tax in that country is 25%. So I earn 20,000 a year
in the uk and pay tax of 4000 (20%) and in my country of residenc i should pay 5000(25%) so the 4k i already paid is offset and i pay the extra 1k. Its a bit more complicated than that but thats generally how it works. Always check with an accountant when you move. different rules aplly to property and capital gains
CamExpat
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Re: How to pay tax in cambodia

Post by CamExpat » Mon Aug 26, 2019 7:31 am

A10 wrote:
Sun Jul 28, 2019 2:28 pm
pczz wrote:
Sun Jul 28, 2019 1:11 pm
Cambodians have to pay tax on their worldwide income, foreigners do not, generally. Cambodia has tax treaties with some countires and informal arrangements with others.
What? Is this one of those laws on the books that is never enforced? This is the first I've heard of that as I thought only America taxed on citizenship, not residence.
I think your comfusing taxation based on residency and US taxation based on Citizenship.

If you reside in a country (usually the rule is you live there > 183 days per year) then taxation rules vary but it is very common to tax *residents* on world wide income. Some countries (Singapore for instance) only taxes on local income, while Canada, UK, US (among many others) will tax on global income. Its very common to have different taxation rules for its own citizens vs. Foreigners even if in some cases those differences are minor.

Where the US is different is the tax their citizens on their global income *whether they reside in the US or not*.

So while the above mentioned countries won't tax their citizens if they are resident in another country, the US still expects you to cut them a check every year for income tax, even if you have spent the last 10 years in say, Cambodia.

Unfortunately, because of its clout the US also has the tools to reach out almost everywhere in the world and make life very inconveninet for its Citizens who do not do so.
Last edited by CamExpat on Mon Aug 26, 2019 7:39 am, edited 1 time in total.
CamExpat
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Re: How to pay tax in cambodia

Post by CamExpat » Mon Aug 26, 2019 7:37 am

Incidently, all cambodian residents, whether citizens or not, are taxed on worldwide income.

https://home.kpmg/xx/en/home/insights/2 ... e-tax.html.

Non-residents earning income from a local company are only taxed on income earned in Cambodia. They are not taxed on income from outside Cambodia.

I'd suspect the cambodian government would not have the tools to find your foreign income unless you started to bring it back into Cambodia.
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