Sub-Decree No.196 ANKr.BK dated 28 September 2022 issued by the Royal Government of Cambodia on “New Annual Tax on Income and Monthly Tax on Salary Thresholds”

The Sub-Decree specifies new Tax on Income (“TOI”) thresholds for the taxable income earned by physical persons, sole proprietorships, and the distributive share of each member of a partnership that is not classified as a legal entity. In addition, the Sub-Decree sets out new Tax on Salary (“TOS”) thresholds for salary income.

The new annual TOI income thresholds are as follows:

No.	Threshold of Income Subject to TOI (KHR)	Tax Rate
1	From 0 to 18,000,000	0%
2	From 18,000,001 to 24,000,000	5%
3	From 24,000,001 to 102,000,000	10%
4	From 102,000,001 to 150,000,000	15%
5	Over 150,000,000	20%

The new monthly TOS thresholds are as follows:

No.	Threshold of salary subject to TOS (KHR)	Tax Rate
1	From 0 to 1,500,000	0%
2	From 1,500,001 to 2,000,000	5%
3	From 2,000,001 to 8,500,000	10%
4	From 8,500,001 to 12,500,000	15%
5	Over 12,500,000	20%

This Sub-Decree enters into effect on 1 January 2023.