Cambodia: Tax incentives include reduced withholding tax rate for securities investors

Cambodia: Tax incentives for securities investors

Guidance—Prakas 471 (5 May 2020)—issued by the Ministry of Finance concerns implementation of a withholding tax incentive for securities investors on the Cambodian Securities Exchange (CSX).


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The incentive is a 50% reduction of withholding tax on interest and dividends received with respect to the holding, buying, and selling of government bonds, stock securities, and debt securities for three years—from 1 January 2019 to 31 December 2021.

Also, the rate of withholding tax on interest paid from debt securities is:

  • 6% for interest payments to resident taxpayers and interest payments by local banks on fixed deposit accounts
  • 14% for interest payments to non-resident taxpayers

KPMG observation

Prakas 471 is part of the government’s goal to attract more investors to Cambodia’s stock exchange, by offering withholding tax incentives that are specifically intended to make debt securities more attractive.

Read a May 2020 report [PDF 226 KB] prepared by the KPMG member firm in Cambodia

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