Share with your friends

Cambodia: Taxation of dividends under tax holiday rules; use of exchange rates

Cambodia: Taxation of dividends under tax holiday rules

A financial management law, enacted at the end of 2019, includes certain tax amendments. The tax measures in the law address the application of the tax rate, as well as advance taxation and withholding tax on certain dividend distributions.


Related content

The new rules provide that dividends distributed by a qualified investment project under a “tax holiday” (and thus is subject to a 0% tax rate) will be subject to tax at a rate of 20%. In other words, the qualified investment project is subject to a 0% rate of tax, but if it distributes dividends to its shareholders out of retained earnings, such dividend distributions are subject to a 20% rate of tax. Thus, the tax holiday was in reality a tax deferral.

Exchange rates

The General Department on Taxation issued guidance in December 2019 concerning the use of rates of exchange by taxpayers under the self-assessment regime. The new guidance establishes the rules for the use of exchange rates, effective January 2020.

Read a January 2020 report [PDF 1.05 MB] prepared by the KPMG member firm in Cambodia 

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal