As of date, Cambodia has yet to implement a personal income tax (PIT) regime and there is no requirement to submit a PIT return to the Tax Authority. Currently, tax on income earned by individuals from their employment activities is withheld by the employer and remitted to the Tax Authority through the monthly filing of the Tax on Salary (ToS) and Fringe Benefits Tax (FBT). Salary is taxed according to progressive tax rates ranging from 5% to 20% for resident employees on their Cambodian and foreign source income and at a flat rate of 20% for non-resident employees on their Cambodian source income only, while fringe benefits are subject to a flat rate of 20% based on the fair market value (FMV) of the benefit. A credit for foreign income tax paid is allowed against Cambodian income tax (subject to certain limitations), provided the same is properly substantiated.

Why are ToS and FBT complaince important?

Extended business expatriate assignees, as well as local Cambodians who fulfil employment activities, will be liable to pay tax on all earnings related to work undertaken whilst based in the Kingdom of Cambodia, irrespective of which country the earnings are paid from.

Employers and employees will be responsible for the taxes to be paid to the Tax Authority, with the responsibility to withhold the taxes from the employees solely resting with the employers. There is no recourse for the Tax Authority to require any underpaid taxes from the employees are they are not registered and therefore it is important for the employers to properly understand the tax compliance, withhold it correctly and remit it to the Tax Authority by the stipulated deadline. 


KPMG has been working with various sectors and industries ranging from commercial, non-profit organisations and business associations.  Our professional team has had significant experience in preparing and reviewing ToS and FBT return compliance, reviewing remuneration packages and international assignee agreements or employment contracts assigned from overseas group entities or head office to work in local Cambodia entity and advise on PIT compliance and recommend on restructuring package which has more tax efficiency for the entity.   This puts up in a strong position and enables us to deliver a high standard quality of services in respect of this PIT compliance for business entities as we have readily technical resources and significant experiences on this matter with various sectors.  

How can KPMG help?

Our ToS and FBT services include:

  • ToS and FBT Preparation and Compliance Management
  • Historical ToS and FBT Compliance Review
  • Review and Advise on Remuneration Packages
  • Review and Restructure Secondment or Employment Agreements
  • Obtain Certificate of Tax Residency 

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