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Actual rules for Self-employed

Hi everybody,

does anybody have knowledge about actual valid rules for tax registration?
Is there just one kind of taxes for self-employed/freelancers without an office or store?
No kind of income tax, only the VAT tax?

I´m here as a teacher and little retailer.
I walked to the Ministry of Taxation and the men there told me, if you earn less than $5000 per month (!), you don´t have to pay any taxes.
So, no registration for me.

Ok, if this is true I say "Thank you" to Cambodia and know now, why this country is poor.

Cheers, Rick

Rick N. :

Hi everybody,

does anybody have knowledge about actual valid rules for tax registration?
Is there just one kind of taxes for self-employed/freelancers without an office or store?
No kind of income tax, only the VAT tax?

I´m here as a teacher and little retailer.
I walked to the Ministry of Taxation and the men there told me, if you earn less than $5000 per month (!), you don´t have to pay any taxes.
So, no registration for me.

Ok, if this is true I say "Thank you" to Cambodia and know now, why this country is poor.

Cheers, Rick

Hi Rick,

My last March experience in Kep was :

1) Register a name business/activity, in my own name, no company, at the Department of Commerce in order to obtain a “Licence” (7$/year).

2) Regulations says that we have 15 days, from the Licence date, to register with the Department of Taxation. Paid 100$/year to obtain their “Patent”.

3) Must declare monthly income even if it is “0”. No income tax under a minimum (probably 5000$/YEAR).

4) Must pay monthly 10% tax on house rent contract. They consider is my office (discuss this point before with your landlord).

Licence and Patent are necessary to obtain the annual EOS VISA.

It seems that the “One Window” (near Seh Sah/White Horse) is actually doing the necessary for the License.

Cheers,
Marcelo

Sorry Rick to disturb your dream, but there are laws re income tax, as follows.

Note that a "resident" is someone with a permanent address or someone staying more than 181 days in the country. Non-residents are taxed 20% flat, but only on income generated within Cambodia.
Residents are taxed on all income generated worldwide.

Residents are taxed on salary at rates of:

10 percent for those making between $312.50 and $2,150 per month;
15 percent for those making between $2,150 and $3,120; and
20 percent for those making $3,120 or more each month.

Source: Move to Cambodia.

Fact is that nearly nobody pays the taxes and there no real law enforcement..... hence the corruption.

Cheers

Joe
Cambodia expert
Expat.com team

Hi Marcelo and Joe,

thx a lot for these clear and structured informations.
Just confusing you don´t get this or different from the officials.

If another classification will be for me here in Kep reality, I will write it in this topic.

Cheers, Rick

Hi Rick,

Your say that you are a freelance teacher and little retailer, right ?

You live around Kep all the year, right ?

Ask to a serious Agent, like Any Tours Kep, about what documents you will need to ask for “business” annual EOS.

Cheers,
Marcelo

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