Large Taxpayers and Patent Tax

Summary Lesson-Large Taxpayers and Patent Tax for Cambodia (Updated 2021)

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Large Taxpayer Classification based on ” Turnover”

The term “turnover” refers to the level of a taxable supply of goods and services related to a taxpayers business activities.

Large taxpayers includes any sole proprietorship ,partnership or legal entity that has:

• 1.Had annual turnover above KHR 4,000 million ( approximate  USD 1,000,000) for agricultural sector; or
• 2. Had annual turnover above  KHR 6,000 million ( approximate USD 1,500,000) for service and commercial sectors; or
• 3.Had annual turnover above KHR 8,000 million ( approximate USD 2,000,000) for industrial sector.

Large Taxpayer Classification based on ” Legal Forms”

• 1. Subsidiary of multinational companies; or
• 2. Branches of foreign companies; or
• 3. Enterprises registered as Qualified Investment Projects (QIP) (approved by the Council for the Development of Cambodia/CDC)

Large Taxpayer Classification based on ” assets = current assets + non-current assets”

If taxpayer declared turnover does not reflect actual turnover. In this circumstance , GDT  will classify using the value of their assets (current and non-current) as follows:

A sole proprietorship , partnership  or legal entity that:

• 1 .Has assets valued above KHR 2,000 million (approximate  USD 500,000) in the agricultural, service and commercial sectors; or
• 2. Has assets valued above KHR 4,000 million (approximate  USD 1,000,000) for the industrial sector.

Patent for Large Taxpayer (Not Updated) 

The Patent Tax is paid by the end of March every year (31-March).

The new Large taxpayer registered at General Department of Taxation (GDT) will pay Cambodia Patent Tax in a full amount if the new Large taxpayer is registered within the first half of the year ( From Beginning January to Ending June of Calendar Year), or but new Large taxpayer will pay patent tax in a half amount of full amount if the new Large taxpayer is registered within the second half of the year (From beginning July to ending December of Calendar Year).

The large taxpayer who has branches, warehouses, factories or workplaces for the same business activity in the same local jurisdiction is subject to only one patent tax payment, but if taxpayer has different businesses activities in the same local jurisdictions taxpayer will pay the patent tax for each business activity.

Large Taxpayer who has branches, warehouses, factories or workplaces for the same business activity at the different jurisdictions ( provinces or capital)  will pay the each patent tax for each jurisdiction, but patent tax payment is KHR 3,000,000 (approx. USD 750) for each jurisdiction.

The taxpayer must display the patent certificate at the principle place of business.