On 11 March 2024, the Royal Government of Cambodia issued Sub-Decree No. 47 An.Pr.K on Patent Tax (the “Sub-Decree”). The Sub-Decree is intended to assist the Royal Government of Cambodia with the collection of patent tax from taxpayers who fall under the self-assessment regime.
Patent tax is an annual tax that is determined based upon the classification of the taxpayer as a “small taxpayer,” “medium taxpayer,” or “large taxpayer,” and level of turnover as indicated in the table below.
|
Self-Assessment Tax Regime |
Annual Patent Tax Rate |
Annual Patent Tax Rate |
|
Small Taxpayer |
KHR 400,000 |
USD $100 |
|
Medium Taxpayer |
KHR 1,200,000 |
USD $300 |
|
Large Taxpayer |
KHR 3,000,000, or KHR 5,000,000 (if the annual turnover is more than 10 billion Riel - approximately USD $ 2.5 million) |
USD $750, or USD $1,250 (if the annual turnover is more than 10 billion Riel - approximately USD $ 2.5 million) |
Taxpayers must apply for a Patent Tax Certificate for each business activity undertaken. The patent tax payable for a new business activity starting from 1 July of the of the year in which the business operations are commenced is 50% of the standard annual patent tax amount specified above and the Patent Tax Certificate must be renewed annually within the first three months of the year.
This announcement does not constitute legal or tax advice and may not be relied upon as such. Should you have any questions or concerns regarding legal or tax issues in Cambodia please do not hesitate to contact us.
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