Business practicalities in Cambodia

Land and property rights

Much Cambodian land is state-owned and used for public service provision, conservation and rural properties. In almost all cases, the right to own property in Cambodia is limited to individuals with Cambodian citizenship or legal entities deemed to be of Cambodian nationality. While foreigners cannot own land, a legal entity they have a stake in with a Cambodian business partner who owns at least 51 per cent, may do so. Foreigners can purchase apartments and condominiums, provided they are not on the ground floor of a building.

Under Cambodia’s 2021 Investment Law, foreigners are allowed to engage in long-term leases for land and property. These contracts allow for the use and development of land for business or other purposes. Australian businesses should be aware that there have been reports of land and title disputes in Cambodia. It is important to perform due diligence before committing to any lease agreements or land purchase.

Cybersecurity

The Ministry of Posts and Telecommunications (MPTC) proposed a draft law on cybersecurity in July 2023 that is ostensibly meant to protect citizens’ digital privacy. It has come under criticism, however, for excluding government entities and potentially restricting civil liberties, as well as cross-border data flows, which would hinder the business environment. As of March 2026, the law, as well as a proposed law on personal data protection, are not in force.

Intellectual property (IP)

To support continued economic development, Cambodia is working to bring its intellectual property (IP) framework into line with World Trade Organisation (WTO) standards. Cambodia has been a member of the World Intellectual Property Organisation (WIPO) since 1995 and WIPO has an office in Phnom Penh. Cambodia is a signatory to the Agreement on TradeRelated Aspects of Intellectual Property (TRIPS) and the Madrid Protocol. While the government also has a number of IP enforcement departments, such as the Cambodian Counter Counterfeit Committee, oversight and enforcement responsibilities remain poorly defined and IP protection is weak.

Intellectual property laws, protections and disputes are overseen by the Department of Intellectual Property Rights (DIPR). Cambodia regulates seven kinds of IP: trademarks, patents, utility models, industrial designs, geographical indications, integrated circuit layout designs and copyright. The following rules apply to IP registration:

Violation of IP and enforcement options:

Cambodia’s IP framework has improved dramatically in recent years, but violations still occur. Businesses or individuals seeking to enforce their IP rights have several options:

• Sue for monetary damages in civil court
• Request the General Department of Customs and Excise (GDCE) suspend import clearance for infringing goods
• Pursue criminal prosecution or fines 

Taking legal action against IP infringers is the only way for businesses and individuals to recoup financial losses resulting from infringement. However, this process can be time consuming. Because Cambodia’s manufacturing base is relatively small and most infringing goods are imported, it can be easier to have infringing imports disallowed. To pursue this option, businesses must submit an application to GDCE utilising the Intellectual Property Rights Recordation System (IPRRS) showing the goods to be counterfeit and pay an official fee. Businesses can consult IP Australia for advice.

Import duties and tariffs 

Cambodia has implemented several programs to reduce tariffs and improve economic integration in the region. For example, the ASEAN Trade in Goods Agreement eliminates import tariffs for ASEAN member states. Under the ASEAN-Australia-New Zealand Free Trade Agreement, nearly all Australian goods may enter Cambodia tariff-free. For more details regarding the specifics of free trade with Cambodia, including rules and restrictions, visit the Department of Foreign Affairs and Trade’s FTA Portal.

Calculations and payments 

As a member of the WTO, Cambodia’s customs duty calculation procedures align with the General Agreement on Tariffs and Trade (GATT). Under GATT’s Valuation Agreement, import duty is calculated by multiplying the imported good’s value by the corresponding import duty rate. The dutiable value of imported goods is typically based on the cost, insurance and freight level under the International Commercial Terms.

Other taxes and charges

Cambodia levies a 10 per cent value added tax (VAT) on most goods and services. Some goods and services are exempt from VAT if they support certain industries or public services. Supplies for Qualified Investment Projects (QIPs) and those bound for businesses in Special Economic Zones (SEZs) are generally exempt from VAT and other import duties, if applicable.

Cambodia also charges a tax for public lighting (TPL) on the distribution of alcohol and tobacco products. For importers, tax is generally five per cent of the goods’ value. For distributors, TPL is charged at 20 per cent.

Export duties

While most goods are exempt, Cambodia does levy export duties on items such as timber, minerals, natural resources, and animal products, including seafood. Businesses should note that an export permit from the General Department of Customs and Excise of Cambodia (GDCE) is required for all goods leaving the country, regardless of whether duties must be paid. Details regarding export procedures can be found on the GDCE website.

Import and export regulations

The GDCE is responsible for trade facilitation and enforcement. The agency requires that importers and exporters file declarations of their activities with documentation such as packing lists, invoices, proof of insurance, landing or airway bills and other documents, if required.

To streamline the customs process, the government has developed a National Single Window. The platform allows importers and exporters to interact with all government agencies involved in the trade process without filing multiple forms. The GDCE also encourages businesses to use their single administrative document to reduce the bureaucratic load.

All importers and exporters must ensure that their business entity is registered with the MOC and has a Tax Identification Number (TIN). Businesses must also register for VAT payment and complete a customs declaration. Further details are available through the Cambodian government’s National Trade Repository.

In Cambodia, businesses register for taxation through a local branch of the General Department of Taxation (GDT). The GDT oversees taxation for both individuals and businesses. Their regime includes corporate income taxes, salary taxes, stamp duties, withholding taxes and value added taxes. There is no double taxation treaty in place between Cambodia and Australia.

This section provides an overview of the taxes Australian businesses can expect to face when operating in Cambodia. Not all applicable taxes are covered in this guide and the information provided is of a general nature. Businesses should seek professional tax advice for understanding the taxes specific to their activities.

Table 1: Overview of Cambodia’s taxes for businesses

Corporate Income Tax (CIT)

In Cambodia, corporate tax rates and filing requirements vary by enterprise size and sector of operation. Size is defined as follows:

Table 2: Corporate tax brackets and criteria

At a minimum, representative offices of foreign companies are taxed as medium enterprises. Branch offices and subsidiaries are considered large enterprises for tax purposes. Mining and resources businesses are taxed at 30 per cent. Cambodia and Australia do not have active tax agreements, so all taxes must be paid at rates dictated by the Cambodian government.

Cambodia provides a range of tax incentives for foreign companies. Qualified Investment Projects (QIP) are eligible for several tax exemptions and deductions, detailed in Section 3.2. Additional tax incentives are provided in the agriculture and securities sectors.

Personal income tax 

Cambodia’s personal income taxes are charged as a monthly salary tax. The tax rate depends on residency status. An individual is classified as a tax resident if they are present in Cambodia for more than 182 days in a 12-month period. Residents are charged on all earnings, regardless of location. Non-residents are taxed only on income derived from employment in Cambodia.

Non-residents are taxed at a flat rate of 20 per cent. Residents are taxed at the following progressive rates:

Monthly salary tax rates

Indirect taxes

Value added tax (VAT): Apart from some exemptions, all goods and services are taxed at a rate of 10 per cent. Exemptions include goods and services supplied to export-oriented garment, textiles, footwear, luggage and headwear manufacturing as well as rice production intended for local sale and consumption. VAT returns and payments must be submitted within 20 days of the following month.

Stamp tax: Tax imposed on the transfer of title of assets and shares, at a rate of 4 per cent and 0.1 per cent, respectively.

Patent tax: Must be paid upon registering for a Tax Identification Number. The tax ranges from 400,000 KHR (AUD 154) for small enterprises, 1.2 million KHR (AUD 463) for medium enterprises and 3 million KHR (AUD 1,157) for large enterprises.

Land and property taxes: Tax on immovable property, including land, buildings and other infrastructure built on land, are levied at a rate of 0.1 per cent of the tax base of the asset. The tax base is equal to 80 per cent of the market value of immovable properties in question. A separate annual tax return must be filed with the GDT for each individual piece of immovable property. Payment of tax is due on 30 September. Cambodia also charges an annual tax on unused land that does not fall under the scope of immovable property tax charges. The tax rate is two per cent of the market value of the land per square metre due on 30 June each year.

Auditing and accountancy play a vital role in enhancing transparency and accountability in a business, especially one engaged in a foreign market. It increases business performance by identifying risks and highlighting areas for improvement.

Accounting standards

Accounting standards in Cambodia are managed by the Accounting and Auditing Regulator (ACAR). Local and foreign businesses are required to prepare their accounts in accordance with Cambodia International Financial Reporting Standards (CIFRS). CIFRS is in full agreement with the International Financial Reporting Standards (IFRS). Cambodia offers a separate set of IFRS standards for small and medium enterprises which are designed to provide a simpler framework for record keeping.

Although Australian Accounting Standards are also based on IFRS, Australian businesses with operations in Cambodia should review any differences between jurisdictions to ensure their records are compliant with both countries’ accounting authorities.

Statutory audits

In Cambodia tax audits can be frequently imposed which may be administratively burdensome for some businesses. Audits are conducted by an independent external auditor registered with the Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA). All Qualified Investment Projects are required to have their financial statements audited annually.

Additionally, any company fulfilling at least two of the following criteria must undergo an annual audit and submit it to ACAR:

• Annual turnover above KHR 3 billion (AUD 1.16 million)
• Total assets over KHR 2 billion (AUD 771,060)
• More than 100 employees 

Audits must be completed within six months of the financial year end. For businesses that do not require an audit, unaudited financial statements must still be submitted to ACAR. All companies require a Certificate of Financial Reporting Identification Number to submit financial statements to ACAR.

Books and records

Businesses can choose to use KHR or another foreign currency as their functional currency, but financial statements must be prepared in KHR. Records may be kept in English if businesses are unable to use accounting software that supports Khmer, but all supporting documents should be written in Khmer. ACAR must be notified if accounts are being kept in English prior to submission.

Businesses may choose their own financial year end. Financial statements cover a 12-month period and must be completed within three months of year-end.

Quality control

Audits are overseen by ACAR, who maintains a list of approved auditors from which businesses may choose. KICPAA provides auditors with a list of standards and compliance tools to improve audit quality. KICPAA is a member of the International Forum of Independent Audit Regulators.

Cambodia has established an Audit Quality Monitoring Committee with the help of the Institute of Chartered Accountants in England and Wales and the Asian Development Bank.

Doing business in Cambodia will often require employing local and foreign workers. Understanding Cambodia’s labour market regulations, recruitment methods and country-specific management styles is crucial to building and supporting an effective team.

Labour market

Skill level: Cambodia has a young and growing workforce supporting its growth in textile and light manufacturing. However, the skill level of the workforce has historically been considered low and many businesses report struggling to fill positions for skilled professionals. Although the government has more than doubled education spending as a share of GDP since 2012, secondary school completion rates remain just over 25 per cent. This is well below the regional average of 52 per cent. The lack of skilled workers may present challenges for businesses establishing themselves in Cambodia.

Employment contracts: Cambodia’s 2021 Labor Law recognises both oral and written employment contracts. A probationary period of up to three months is permitted, which may be considered in addition to the duration of the employment contract. Contracts may be formed with local or foreign workers, though preference must be given to Cambodian nationals. Foreign workers may not exceed 10 per cent of the workforce in any given enterprise. Contracts may take on the following forms:

Minimum wage: The minimum wage in Cambodia applies only to workers in the textile, garment and footwear manufacturing sectors. It was raised to USD 210 per month (AUD 324) in 2025. In other sectors, employees should not be paid less than this amount. Employers should consider the needs of the employee’s family, the cost of living and the average salary of other workers in the same industry with similar skills.

Human resources and employment law: The 2021 Labor Law is Cambodia’s primary employment legislation. It regulates employment terms and conditions for all employees under a contract with an employer, regardless of nationality.

Working hours: Standard work hours for employees are eight hours per day, up to 48 hours per week. Employees must have 24 consecutive hours off at least once per week. Usually, employees are given Sundays off. Alternative schedules may be set, provided they do not exceed 10 hours per day and 48 hours per week over the course of a 12-week period.

Holidays: All workers are entitled to 18 days per year (1.5 days per month). For every three years of continuous employment, workers receive one extra day of paid leave per year. Cambodia also has 21 public holidays for which employees must be paid 200 per cent of their normal wage if employers request them to work. In addition, workers are commonly given an additional month’s wages at Khmer New Year, bringing their annual total remuneration to 13 months’ pay per year.

Overtime: Overtime is permitted for exceptional or urgent jobs. However, employees are permitted to refuse without penalty. Employers must seek approval from the Ministry of Labour and Vocational Training’s Department of Labour Inspection prior to giving overtime work to employees. Generally, overtime hours are limited to two hours per day and should not exceed 10 hours per week. Employees must also receive either KHR 2,000 (AUD 0.77) or a free meal during their shift.

Sick leave: In the event of illness, employers are to pay workers their normal wage for the first seven days. If the illness extends beyond this period, workers may receive 70 per cent of their normal wage through National Social Security Fund (NSSF) benefits. Employers are also required to suspend workers’ contracts for up to six months in the event of illness. After this period, the contract may be terminated.

Social, health and unemployment insurance contributions: Employers are required to make Occupational Risks Contributions (ORC), healthcare contributions and pension payments to the National Social Security Fund on top of employees’ monthly wages. Contributions are made to employees’ NSSF accounts.

Contribution rates for NSSF payments by employees and employers (% of monthly wages)

Ending employment: In general, fixed duration contracts (FDCs) can only be terminated if both parties agree or there has been serious misconduct by either party. If the contract duration is less than 12 months, employers must give notice of contract conclusion and non-renewal at least 10 days before the expiration date. For FDC contracts longer than one year, 15 days of notice are required. Unspecified duration contracts can be terminated for any reason relating to employee performance or organisational needs. Required notice depends on the length of service.

Severance pay: Severance payments of at least five per cent of wages are required for FDCs where sufficient notice of nonrenewal is given by the employer or when the contract is terminated by mutual agreement. In cases where insufficient notice is given or the contract is terminated without reason, additional payments must be made to employees. UDCs require severance payments equal to 15 days of wages and benefits per year of employment, up to a maximum equivalency of six months of wages.

Recruiting staff

Online advertising: Many companies recruit online to increase the likelihood of getting skilled workers.

• 9cv9 is a global employment platform specialising in the Southeast Asian job market
• BongThom is a local Cambodian job advertising and application website with postings from across the country
• CamHR is a large and well-established recruiting platform in Cambodia
• LinkedIn provides valuable intelligence when searching for employees in a particular sector or field

Executive search: Executive search firms can provide tailored searches for more senior roles. International firms such as Keller and Talentnet have offices in Cambodia. Local firm Top Recruitment also offers services throughout the country.

Work permits: Work permits for foreigners may be obtained through the Ministry of Labor and Vocational Training for a period of one year, renewable indefinitely. Generally, foreign workers must not exceed 10 per cent of an establishment’s employee base. Workers require a valid passport, visa and residence permit to apply for a work permit. Work permits also require the granting of a health certificate by the Department of Occupational Safety.

The banking sector in Cambodia has undergone significant modernisation in recent years. Several laws have been passed imposing stricter regulations to combat money laundering, terrorism financing and financial crime. Laws regulate the activities and minimum capital requirements for Cambodia’s three types of financial institutions: commercial banks, specialised banks and microfinance institutions.

To conduct commercial activities, most foreign businesses will be required to open a bank account in Cambodia. Bank accounts are typically denominated in KHR or USD. Accounts for everyday banking should be opened through a commercial bank, but businesses may choose to use a specialised bank for accessing loans and credit.

Table 3: Financial institutions in Cambodia

Foreign exchange controls

Since the enactment of the 1997 Law on Foreign Exchange, Cambodia has imposed no restrictions on the exchange of foreign currency. However, banks are required to notify the National Bank of Cambodia regarding transfers exceeding USD 10,000 (AUD 15,430). Australian firms should be prepared for changes in policy as the government attempts to “de-dollarize” the economy.

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