This article provides a detailed overview of the corporate tax regime in Cambodia for 2025, outlining tax rates, assessment rules, and special provisions relevant to both domestic and international businesses operating in the country.
Corporate Tax Structure in Cambodia
Cambodia applies a progressive corporate tax model assessed on income generated by corporate entities. For the 2025 fiscal year, the default data indicates a single main bracket for most companies, along with specific surtaxes for select sectors.
Standard Corporate Income Tax
Corporate income in Cambodia is primarily taxed at a flat rate, rather than a truly progressive series of brackets. According to the most recent information available, the following rate applies:
| Taxable Income (KHR) | Rate (%) |
|---|---|
| 0 and above | 20% |
The 20% rate covers the majority of corporate entities except where specific surtaxes are applicable. All amounts are in Cambodian riel (KHR).
Surtaxes and Special Taxation Scenarios
In addition to the general rate, Cambodia imposes distinct surtaxes on companies involved in certain industries. These are summarized below:
| Sector/Activity | Applicable Surtax Rate (%) | Basis of Tax |
|---|---|---|
| Oil and Gas, Mineral Exploitation | 30% | Applicable to income from these activities |
| Insurance Companies (Gross Premium Income) | 5% | On gross premium income |
| Insurance Companies (Non-Insurance Income) | 20% | On other income from non-insurance/reinsurance activities |
It is important to note that for these specific sectors (oil & gas, certain minerals, insurance), the applicable surtaxes significantly exceed the 20% standard rate and may be assessed on different bases (e.g., gross income versus net profit).
Assessment Basis and Payment
The corporate tax is assessed on the basis of income generated by the company during the taxable year. Data indicates the assessment is strictly corporate—personal or pass-through elements are not applied under the default regime.
No minimum or maximum holding period is specified in the extracted data for the relevant tax brackets, indicating broadly consistent application regardless of ownership duration.
Key Takeaways for 2025
- The headline corporate income tax rate is 20% (KHR), applied to all standard company profits.
- Specific sectors face much higher effective rates—up to 30% for oil, gas, and select minerals, and specialized insurance tax surcharges.
- Companies in insurance must be vigilant in tracking various income streams as Cambodian authorities apply differing rates to gross premiums and non-insurance business lines.
- Current data for underlying detailed rates or additional brackets is not publicly available; information is typically updated via official Cambodian government channels.
Pro Tips for Navigating Corporate Tax in Cambodia
- Clarify Your Sector Status Early: If you operate in or near the oil, gas, minerals, or insurance industries, confirm with the General Department of Taxation which surtaxes may apply to your business activities.
- Track Revenue Streams Separately: For insurance companies, maintain robust documentation distinguishing premium income from other operational revenue—errors can result in costly misclassification at the surtax level.
- Plan for Surtaxes: Firms engaged in extractive industries should factor the 30% surtax into financial forecasts and transfer pricing policies, as this rate applies specifically and strictly to the sector.
- Monitor Official Updates: Key elements of Cambodia’s corporate tax regime can be subject to annual review; consult the General Department of Taxation homepage for the latest documentation and guidance.
Official Resources
Cambodia’s corporate tax regime for 2025 relies on a broadly applied 20% headline rate, with significant sector-specific adjustments for oil, gas, minerals, and insurance activities. The lack of detailed multiple brackets means corporate taxpayers primarily need to monitor whether any special rates apply to their sector. As with many regulatory systems, direct consultation with official sources is recommended to confirm individual circumstances, especially for businesses with diverse or complex operations.