Cambodia: Updated guidance on taxation of salary and fringe benefits

Guidance on the rules and regulations regarding imposition of tax on salary and taxation of fringe benefits

Updated guidance on taxation of salary and fringe benefits

The Ministry of Economy and Finance issued guidance—Prakas no. 543 (8 September 2021)—that updates the rules and regulations regarding the imposition of tax on salary and the taxation of fringe benefits.

The guidance contained in Prakas no. 543 replaces and updates prior rules (December 2003), and clarifies what are considered to be taxable and non-taxable salaries. The term “salary” refers to salaries, remunerations, severance pay, bonuses, overtime, compensation, and fringe benefits paid to an employee or paid for the direct or indirect advantage of the employee for the fulfillment of employment activities.  Examples are provided by Prakas no. 543.

Regarding fringe benefits taxation, Prakas no. 543 adds stock options to the list of taxable benefits.

Prakas no. 543 provides guidelines on the conditions and supporting documents to enable resident employees to claim a foreign tax credit.

Read an October 2021 report [PDF 300 KB] prepared by the KPMG member firm in Cambodia

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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.