Medium Taxpayers and Patent Tax

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

Medium 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.

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

• 1.Had annual turnover above KHR 1,000 million to KHR 4,000 million ( approximate USD 250,000 to USD 1,000,000) for agricultural sector; or
• 2. Had annual turnover above  KHR 1,000 million to KHR 6,000 million ( approximate USD 250,000 to USD 1,500,000) for service and commercial sectors; or
• 3.Had annual turnover above KHR 1,600 million to KHR 8,000 million ( approximate USD 400,000 to USD 2,000,000) for industrial sector.

Medium Taxpayer Classification based on ” Legal Forms”

• 1.Enterprises that have been incorporated as a legal entity or as representative office ; or
• 2. National and subnational government institutions, associations or nongovernmental organizations, or projects under these institutions; or
• 3.Foreign diplomatic and consular missions, international organizations and agencies of technical cooperation of other governments, or projects under these institutions.

Medium 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 1,000 million to KHR 2,000 million (approximate USD 250,000 to USD 500,000) in the agricultural, service and commercial sectors; or
• 2. Has assets valued above KHR 2,000 million to KHR 4,000 million (approximate USD 500,000 to USD 1,000,000) for the industrial sector.

Patent for Medium Taxpayer (Not Updated)

For medium Taxpayers, you will patent tax KHR 1,200,000 ( approximate USD 300).

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

The new medium taxpayer registered at General Department of Taxation (GDT) will pay Cambodia Patent Tax in a full amount (KHR 1,200,000) if the new medium taxpayer is registered within the first half of the year ( From Beginning January to Ending June of Calendar Year), or but new medium taxpayer will pay in a half  (KHR 600,000) of full amount (KHR 1,200,000) if the new medium taxpayers is registered within the second half of the year (From beginning July to ending December of Calendar Year).

The medium 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.

Taxpayer at the different jurisdictions will pay the each patent tax for each jurisdiction.

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