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


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