How dividend tax works in Cambodia
Cambodia dividend tax depends on who receives the dividend. Dividends distributed by a Cambodian resident enterprise to a non-resident are Cambodian-source income and generally subject to 14% withholding tax, unless treaty relief applies.
Resident-to-resident dividend withholding tax is generally not applicable. For companies, dividends from a resident company are not taxable income when they are distributed from profits on which Tax on Income has been paid. Foreign dividends received by a resident company form part of taxable income with possible foreign tax credit relief.
Tax rates at a glance
- Dividend WHT to residents
- 0%Resident
- Dividend WHT to non-residents
- 14%
- Resident inter-company dividends
- Exempt
- Foreign dividends to resident company
- 20%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsCambodia companiesHolding structuresForeign shareholdersLocal founders
Watch out for
- Non-resident dividend withholding tax is generally 14%, but Cambodia tax treaties may reduce taxing rights if the shareholder follows the relief process.
- Dividend distributions should be backed by accounts, corporate approvals and evidence that profits have been properly taxed or exempted.
- Foreign shareholders may also owe tax in their home jurisdiction even after Cambodia withholding tax.
Frequently asked questions
Does Cambodia tax dividends?
Cambodia generally does not impose withholding tax on dividends paid to residents, but dividends paid to non-residents are generally subject to 14% withholding tax.
Are Cambodia dividends paid to foreign shareholders taxed?
Yes. Dividends distributed by a Cambodian resident enterprise to a non-resident are Cambodian-source income and generally face 14% withholding tax, subject to treaty relief.
Are foreign dividends taxed in Cambodia?
Foreign dividends received by a Cambodian resident company generally form part of taxable income, with foreign tax credit relief potentially available. Individual treatment depends on whether the income is employment, business or investment income under Cambodia rules.