Cambodia corporate tax, audit and incentives

Short answer

Cambodia has a self-declaration tax system. The standard corporate income tax rate is 20% for medium and large taxpayers and permanent establishments; small taxpayers pay progressive rates from 0% to 20%. A minimum tax of 1% of annual turnover applies, and an independent audit is compulsory for Qualified Investment Projects and public limited companies. QIP incentives can reduce income tax to zero for three to nine years.

The headline tax rates

Item	Position	Source
Corporate income tax	20% standard rate for medium and large taxpayers and permanent establishments. Small taxpayers pay progressive rates from 0% to 20%.	PwC (2 April 2026); Deloitte (2025)
Oil, gas and certain minerals	30%	Deloitte (2025)
Minimum tax	1% of annual turnover including all taxes except VAT, due regardless of profit or loss. Enterprises that maintain proper accounting records have been exempt from it since 1 January 2017, but there is no statutory definition of “proper accounting records”.	PwC (2 April 2026)
Branch profit remittance	14% withholding tax on remittances of branch profits to a foreign head office	Deloitte (2025)
Provincial and local income tax	Not applicable in Cambodia	PwC (2 April 2026)
Dividend distributions	Advance tax on dividend distributions at 20% of the grossed-up dividend (30% for oil and gas), unless the QIP is in a tax holiday period	Deloitte (2025)

Small, medium and large taxpayers

Cambodia operates a single self-declaration regime. Taxpayers are classified by sectoral turnover, legal form and other criteria, and the classification decides both the rate and how you are administered.

Large: turnover above KHR 4 billion (agriculture), KHR 6 billion (services and commerce) or KHR 8 billion (industry); any subsidiary of a multinational company; any branch of a foreign company; and every Qualified Investment Project.
Medium: turnover from KHR 1 billion (agriculture), KHR 1 billion (services and commerce) or KHR 1.6 billion (industry); and any entity registered as a legal person or a representative office.
Small: turnover from KHR 250 million (agriculture, services, commerce) or KHR 250 million to KHR 1.6 billion (industry), plus sole proprietorships and partnerships below those thresholds.

If the declared turnover does not reflect actual turnover, the General Department of Taxation can re-classify the taxpayer on the basis of the value of the assets used in the business (PwC).

Who must have an audit

All enterprises and non-profit organisations must have their financial statements audited by an independent external auditor. In practice the thresholds are: an independent audit is compulsory for public limited companies and for Qualified Investment Projects; for other enterprises it is required where any two of the following apply: annual turnover above KHR 4 billion, total assets above KHR 3 billion, or more than 100 employees (Deloitte, 2025).

Publicly accountable entities must use full Cambodian International Financial Reporting Standards; entities subject to audit that are not publicly accountable may use CIFRS for small and medium-sized entities or full CIFRS.

Capital gains tax from January 2026

Cambodia introduced a capital gains tax regime in 2025 and 2026, which matters for anyone buying or selling property or shares. On 18 July 2025 the Ministry of Economy and Finance issued Prakas No. 496, with provisions effective from 1 September 2025 for most asset classes and from 1 January 2026 for immovable property. A 20% capital gains tax applies to resident and non-resident individuals and to non-resident legal entities, with the return and payment due within three months after the gain is realised (Deloitte, 2025).

For immovable property, deductible expenses are either 80% of the total sale or transfer income where there is no supporting documentation, or the actual expenses with proper documentation. Other asset classes — leases, investment property, goodwill, intellectual property and foreign currency — are deducted at actual cost. If capital gains tax is properly paid on gains from shares in an operating entity in Cambodia, the withholding on deemed dividends does not apply.

This is one of the reasons land and share transactions in Cambodia need to be modelled before they are signed, not after.

How QIP incentives change the picture

For a company that registers as a Qualified Investment Project, the incentive options in Article 26 of the Law on Investment can take income tax to zero for three to nine years, depending on the sector and activity, from the time the project first earns income. Option 1 is the tax holiday, with a six-year phase-in afterwards at 25%, 50% and 75% of the tax due. Option 2 is expenditure-based, with special depreciation and a deduction of up to 200% of specified expenses for up to nine years. QIPs also receive customs duty, special tax and VAT exemptions on specified imports.

Read this together with the audit duties above: a QIP needs an independent audit every year regardless of the tax holiday, and a lost incentive can be worse than a tax bill. The full mechanics are in our guide on QIP incentives.

Other rules worth knowing

Currency: payments for commercial transactions may be made freely between residents and non-residents, provided they go through an authorised bank. Fund transfers above USD 10,000 must be declared to the National Bank of Cambodia.
Losses: tax losses can be carried forward for up to five years, subject to conditions including no change of business activity and no unilateral reassessment.
Structure: there is no participation exemption and no holding company regime, which is why the choice of entity type matters for a group structure.

Figures and thresholds change. Confirm the current position for your activity with licensed Cambodian tax counsel before you commit.

Where Invest Cambodia fits

We do not give tax advice. Through investment advisory we set out the incentive and structure options for your project, and through company establishment coordination we brief licensed Cambodian accountants and tax practitioners, track filings and keep a handover list of the obligations that follow an incorporation.

Questions investors ask

What is the corporate income tax rate in Cambodia?

20% for medium and large taxpayers and permanent establishments. Small taxpayers pay progressive rates from 0% to 20%, and oil, gas and certain mineral activities are taxed at 30%.

Does a Cambodian company need an audit?

An independent external audit is compulsory for public limited companies and Qualified Investment Projects, and for other enterprises where any two of these apply: turnover above KHR 4 billion, assets above KHR 3 billion, or more than 100 employees.

Is capital gains tax charged on property and shares?

Yes. A 20% capital gains tax applies to gains on immovable property from 1 January 2026, with provisions effective from 1 September 2025 for other asset classes including shares, leases, goodwill, intellectual property and foreign currency.

Sources

General information only, not legal, tax or investment advice. Laws, rules and figures change. Confirm the current position with licensed Cambodian professionals before acting.

Cambodia corporate tax, audit duties and incentives: what applies