PHNOM PENH: The Prime Minister of Cambodia has just signed the annual taxable revenue list and the monthly payable tax rate, which is set to increase the tax rate by two million riel (roughly US $500) per year for business incomes or shareholders, and by 20,000 riel (roughly US $5) for monthly salaries.

The new tax limit allows business owners or non-legal entities who earn up to 18 million riel (roughly US $4,500) per year, including those with a monthly salary between 0 to 1.5 million riel (roughly 0 to US $375) to be exempt from taxation.

According to the annual taxable income table and the list of monthly taxable salaries signed by the Prime Minister on Wednesday, 28 September, employees with a monthly salary of 1.5 million to 2 million riel (between US $375 and US $500) are subject to a 5% tax, while those with a salary from 2 million to 8.5 million riel (between US $500 to US $2,125) are subject to a 10% tax.

Those with a salary from 8.5 million riel to 12.5 million riel (between US $2,125 to US $3,125) will be taxed at 15%, and those with salaries above 12.5 million riel (roughly US $3,125) will be taxed at 20%.

This new tax setting also removes the old setting that has been in place since 2020.