New Salary Tax Favours Low-Wage Earners and Workers with Dependants

Royal Government of Cambodia is implementing new salary tax policy in favour of particularly lower-wage earners and those with dependants, according to the Ministry of Economy and Finance.

Monthly salary below 1,200,000 Riel (roughly US$300), specified the ministry, will not be taxed from the first month of 2018 onwards.

It added that monthly wage between 1,200,001 to 2,000,000 Riel (US$500) will be taxed with 5 percent, 2,000,001 to 8,500,000 Riel (US$2,125) with 10 percent, 8,500,001 to 12,500,000 (US$3,125) with 15 percent, and up from 12,500,001 with 20 percent.

Exceptionally for those with dependants, they will gain a tax rebate of 150,000 Riel (US$37.5) for their spouse as housewife and each of their kids.

All registered state and private entities are required to comply with the new salary tax policy.

Source: Agency Kampuchea Press