Cambodia Rental Income Tax Guide 2026

Overview — Rental Income Taxation

Rental income from immovable property (residential, commercial, industrial) is taxable in Cambodia. The tax treatment depends on whether the landlord is an individual or a legal entity. Individuals report rental income as part of their personal income and are taxed at progressive TOS rates (0–20%). Corporate landlords include rental income in their gross revenue and are taxed at the standard CIT rate of 20%. Expenses directly related to generating rental income may be deductible.

Tax Rates for Rental Income

Rental income tax rates depend on the taxpayer type:

• Individuals (Cambodian residents): Taxed at progressive TOS rates 0–20% based on total monthly income including rent
• Corporate landlords: CIT at 20% on net rental income (after expenses)
• Non-residents: 10% final withholding tax on gross rental income
• Simplified Tax Regime (STR): For small landlords, a simplified rate may apply

Allowable Deductions

Landlords may deduct expenses directly related to generating rental income, including:

• Property management fees
• Repairs and maintenance costs
• Insurance premiums
• Property tax (annual property tax paid)
• Interest on mortgages (for rented properties)
• Utilities paid by the landlord
• Depreciation on the building (at 5% straight-line)
• Agent commissions

Individuals can choose between deducting actual expenses or claiming a standard deduction of 50% of gross rental income (no receipts required). The standard deduction simplifies compliance for small landlords.

Withholding Tax on Rental Payments

When a tenant pays rent to a non-resident landlord, the tenant must withhold 10% of the gross rent and remit it to the GDT. This 10% WHT is a final tax for the non-resident landlord. For resident corporate landlords, no WHT is required on rental payments. For resident individual landlords, the tenant is generally not required to withhold tax — the individual declares and pays the tax directly. Failure to withhold correct WHT can result in penalties for the tenant.

Filing Requirements

Individual landlords must declare rental income as part of their annual income tax return, filed by 31 March of the following year. Landlords under the Simplified Tax Regime (STR) file monthly or quarterly returns based on revenue. Corporate landlords include rental income in their monthly provisional CIT declarations and annual CIT return. Non-resident landlords may be subject to final WHT and do not need to file additional returns if tax is properly withheld.

Short-Term Rentals

Income from short-term rentals (e.g., Airbnb, serviced apartments) is also taxable as rental income. Short-term rental operators must register for VAT if annual revenue exceeds KHR 250 million. Platform-based rentals are subject to the same tax rules as traditional rentals. The GDT has increased focus on digital platform rental income and may require platforms to report rental income data. Short-term rental hosts should ensure proper tax registration and compliance.

FAQs

Can I claim a standard deduction instead of tracking actual expenses?

Yes, individual landlords can claim a standard deduction of 50% of gross rental income without needing to provide receipts for actual expenses.

Is rental income subject to VAT?

Residential rental income is generally exempt from VAT. Commercial rental income is subject to VAT at 10% if the landlord is VAT-registered (annual revenue over KHR 250M).

How do I report rental income as an individual?

Rental income is declared on the annual income tax return (Form 01) filed by 31 March. You should calculate net rental income (gross rent less deductions) and add it to your total income for TOS calculation.

What happens if I don't declare rental income?

Failure to declare rental income can result in penalties of 10% of the tax due, plus interest at 1.5% per month, plus back-assessment for up to 10 years.

Disclaimer

This guide provides general information about Cambodian rental income taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Cambodian tax advisor or the General Department of Taxation for advice specific to your situation. InvestmentKit does not provide tax advice.