Two institutions are responsible for tax collection in the Kingdom. The General Department of Taxation (GDT) collects internal taxes, including income tax, salary tax, value-added tax, and property tax.

The General Department of Customs and Excise of Cambodia (GDCE), meanwhile, is responsible for collecting taxes on goods entering and leaving the country.

According to a GDCE report released at a press conference on Tuesday, the department collected US$3.2 billion in 2025, exceeding the target set under the budget law by 24.5 percent.

Minister Delegate to the Prime Minister and GDCE Director-General H.E. Kun Nhim said the amount of tax revenue collected by the GDCE in 2025 was comparable to that of 2019, a year marked by strong economic performance in both investment and trade.

At the same time, the GDT collected more than US$3.5 billion in tax revenue in 2025, representing an increase of over 3.25 percent from US$3.46 billion in 2024.

Overall tax revenue collection reached 100.23 percent of the amount planned for 2025, the report noted.

According to the Law on Finance for Management 2026, fiscal revenue is projected to account for the largest share of total government revenue, amounting to KHR 25,341,342 million (over US$6.3 billion), reflecting the government’s continued reliance on tax and customs collections as the backbone of public finances.

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The country has two institutions responsible for collecting taxes, namely the General Department of Customs and Excise (GDCE), which collects taxes on goods entering and leaving the country, and the General Department of Taxation (GDT), which focuses on interior taxes such as income tax, salary tax, value added tax, and property tax. Both are under the Ministry of Economy and Finance.

The ministry said in the report that GDT made US$1,710 million as tax income, or 48 percent of the yearly target, while GDCE earned US$1,199 million, or 44 percent of the set target.

“Tax and customs revenue collection throughout 2024 could reach more than US$5 billion, or 85.5 percent of the 2024 financial plan because the income tax collected in the first half of 2024 did not meet the target,” the ministry explained.

The target set for tax and customs income in 2024 is more than US$6.2 billion.

In 2023, GDT collected US$3,600 million in tax revenue, representing 101.13 percent of the 2023 plan, whereas GDCE made about US$2,288 million, or 82.4 percent of the plan.

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The figures were released here on July 24 in a meeting chaired by H.E. Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance.

H.E. Aun Pornmoniroth highly value the achievement of the GDT. “The tax income collection has been made with good performance in the first six months of this year despite difficulties due to risks, uncertainty of the global economy and politics,” he said.

The country has two institutions responsible for collecting taxes. One is the General Department of Taxation (GDT), which focuses on interior taxes such as income tax, salary tax, value added tax, and property tax, and the other is the General Department of Customs and Excise (GDCE), which collects taxes on goods entering and leaving the country.

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This 3-day event, held from September 18th to 20th, 2024, in Long Beach, California, is designed to foster new business relationships and propel Cambodian companies into the US market.

This year’s summit offers a dynamic platform for Cambodian businesses across various sectors to connect with pre-selected US counterparts through targeted matchmaking sessions, networking events, and workshops on navigating US business regulations and establishing partnerships.

The United States represents a vast and lucrative market for Cambodian businesses. The summit provides a direct line to US companies, opening doors for mutually beneficial partnerships and propelling Cambodian products and services onto the American stage.

Last year’s successful trade mission to Long Beach laid the groundwork for deeper US-Cambodia business ties. This year’s summit expands on that success by focusing on broader business matchmaking, fostering connections that can benefit a wider range of Cambodian companies.

This year, IDI (ID Investors Association) hit another level by reaching out to buyers to select Cambodian products to sell in the US market, and there are companies that have partnered with IDI to continue searching for markets for Cambodian products. IDI is also collaborating with the US side to apply for import licenses.

US Remains Top Destination for Cambodian Exports.

According to data released by the General Department of Customs and Excise (GDCE) earlier this month, Cambodia’s exports surged in the first half of 2024, reaching US$12.29 billion, a 12.6% increase compared to the same period last year. The United States remained the top destination for Cambodian exports.

The United States remained the top destination for Cambodian exports, accounting for US$4.4 billion. Vietnam and China followed closely behind with US$2 billion and US$814 million respectively.

This is your chance to connect with potential US partners and unlock new growth opportunities for your Cambodian business. For further details and swift registration, reach out to Mr. Van Ratana at 092 785 585 via Telegram or Phone Call. The application deadline is set for August 10th, 2024.

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However, imports also rose by 12.8% to US$13.8 billion during the same period. Total trade between Cambodia and its partners reached US$26.1 billion, reflecting a 12.7% year-on-year growth.

The Ministry of Commerce attributed the export growth to free trade agreements like the Cambodia-China Free Trade Agreement and the Regional Comprehensive Economic Partnership (RCEP).

Despite global challenges like war and weakening purchasing power, Cambodia managed to maintain high order volumes overall. While there were declines in some export items, these were offset by increases in others.

The United States remained the top destination for Cambodian exports, accounting for US$4.4 billion. Vietnam and China followed closely behind with US$2 billion and US$814 million respectively.

Cambodia’s main exports include garments, machinery, electrical equipment, footwear, leather goods, grains, furniture, rubber, fruits, vegetables, pearls, toys, and textiles. The garment, footwear, and travel goods industry remains the country’s leading source of foreign income.

Cambodia primarily imports medicines, supplements, consumables, food, and beverages.

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The Kingdom currently implements DTAs with Singapore, China, Thailand, Brunei, Vietnam, Indonesia, China’s Hong Kong Special Administrative Region, Malaysia, and South Korea, while DTAs with China’s Macau Special Administrative Region and Turkey are in the process of ratification.

DTAs give confidence and certainty to foreign investors through many benefits, the GDT said in a statement issued recently.

“DTAs not only avoid double taxation, but also play an important role in attracting foreign direct investment and increasing international competitiveness,” it said.

DTAs also prevent or eliminate tax discrimination between local and foreign companies, providing mechanisms for resolving tax disputes, as well as mechanisms for exchanging information between state parties on tax evasion.

The country has two institutions, under the Ministry of Economy and Finance, responsible for collecting taxes. One is the GDT, which focuses on interior taxes such as income tax, salary tax, value-added tax and property tax.

The other is the General Department of Customs and Excise (GDCE), which collects taxes on goods entering and leaving the country.

The post Cambodia is negotiating DTA establishment with seven countries first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The Kingdom recorded US$5.66 billion imports from the RCEP countries, up 10 percent from US$5.14 billion, it added.

Cambodia’s trade with RCEP countries has increased thanks to trade preferences under the mega-regional trade pact, said H.E. Penn Sovicheat, Secretary of State and Spokesperson of the Ministry of Commerce.

“With almost zero trade tariffs, exporters have been able to take advantage of the trade deal, resulting in increased exports and imports from Cambodia,” he said.

The RCEP free trade agreement entered into force on Jan. 1, 2022. The regional trade pact comprises 15 Asia-Pacific countries including the ten Member States of the Association of Southeast Asian Nations (ASEAN) — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — and their five trading partners, namely China, Japan, South Korea, Australia and New Zealand.

RCEP nations collectively represent about 2.2 billion people, or 30 percent of the global population, contributing US$26.2 trillion to the gross domestic product (GDP), which is 30 percent of the worldwide GDP. Member countries account for approximately 28 percent of global trade, as per the ministry.

Cambodia’s total international trade volume was valued at US$12.4 billion during the first quarter of 2024, a 11.9 percent increase from US$11.16 billion in the corresponding period last year, according to the General Department of Customs and Excise (GDCE).

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“The tax income in January this year accounts for 7.17 percent of the yearly target,” said a report issued on Monday.

In January, it pointed out, that the GDT earned value-added tax (VAT) of US$8.67 million on e-commerce transactions from non-resident taxpayers of enterprises, suppliers of goods, and electronic services from abroad.

The government started implementing e-commerce VAT in April 2022 and taxed companies including Google, Facebook, YouTube, Alibaba, Microsoft, and TikTok.

The country has two institutions responsible for collecting taxes. One is the General Department of Taxation (GDT), which focuses on interior taxes such as income tax, salary tax, value-added tax, and property tax, and the other is the General Department of Customs and Excise (GDCE), which collects taxes on goods entering and leaving the country.

Last year, the GDT earned US$3.61 billion, a 4.5 percent increase from US$3.45 billion in 2022.

The post GDT collects nearly $300 million as tax income in January first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The country has two institutions responsible for collecting taxes. One is the General Department of Taxation (GDT), which focuses on interior taxes such as income tax, salary tax, value-added tax, and property tax, and the other is the General Department of Customs and Excise (GDCE), which collects taxes on goods entering and leaving the country.

In 2023, the GDT earned US$3.61 billion, up 4.5 percent from US$3.45 billion a year before, read the report.

On the other hand, the GDCE collected US$2.28 billion in 2023, a decline of 15.7 percent from US$2.67 billion in 2022, the source pointed out.

H.E. Dr. Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance lauded the tax officials’ efforts in collecting taxes.

“The revenues were achieved in a situation where the surrounding environment was facing challenges, including the slow recovery of the superpowers’ economy, the continued prolongation of wars, geopolitical tensions, that have disrupted the transport sector and the supply chain, as well as demand for consumption,” he said at the GDCE’s annual meeting organized here last Friday.

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While Cambodia maintains a relatively healthy inflation rate, it’s not entirely immune to the wider trend. Cambodia’s inflation rate is expected to return to normal for 2024, about 2.5 percent, the same as last year, according to a report recently published.

National and international experts offer their perspectives on the extent of inflation’s impact on Cambodia’s economic and investment landscape.

To combat rising inflation in the United States the Federal Reserve (FED) has raised interest rates 11 times since March 2022, the benchmark rate is now 5.25% to 5.50%, Mr. Anthony Galliano, Group CEO of Cambodian Investment Management shared with Estatedia.

He said the central banks around the world followed the FED in boosting rates, and the dollar hovers at two-decade highs against a basket of major currencies. Cambodia is a substantially dollarized economy and is aligned with higher U.S. rates, increasing the cost of funds for banks and consequentially higher borrowing costs for consumers and corporations. Higher interest rates suppress borrowing demand and have particularly impacted real estate and construction in the Kingdom.

He continues that it costs more to borrow a mortgage for buying a property and for developers to borrow money for projects, Thus construction is impacted by less property development. As Cambodia is still a bank-dominated economy in terms of capital, businesses are more reluctant to borrow for expansion. Inflation also reduces consumer demand as higher prices discourage spending. Many Khmers are watching their wallets as the cost of goods increases globally.

He also explained, as it said that inflation can be a good thing. That would apply to the U.S., the culprit for rising rates given the strong performance of its economy, however being dollarized, Cambodia’s economy may not be performing as well and therefore inflation can only be a bad thing. The bright spot is that being substantially dollarized, Cambodia benefits from the strong dollar, which has higher purchasing power against depreciating currencies. Commodities are priced in U.S. dollars.

Therefore the cost of oil, for example, a major import, is the dollar based is not more expensive as compared to other countries whose currencies have depreciated. On the other hand, Cambodia is still heavily reliant on exports with 60% of the exports going to countries other than the U.S., whose currencies have depreciated, and therefore Cambodian goods are more expensive. This was evident in the decrease in exports in 2023, except in the U.S.

While Asia grapples with high inflation, Cambodia’s relatively stable economic situation positions it to attract increased foreign direct investment (FDI) from China, believes Mr. Lor Vichet, Vice-President of Cambodia Chinese Commerce Association (CCCA). He predicts China will remain the leading source of FDI in Cambodia throughout 2024.

Mr. Vichet attributes Cambodia’s resilience to its unique dollarization policy. As the only dollarized economy in the region, including both ASEAN and RCEP nations, Cambodia experiences milder inflation compared to its neighbors. This stability, coupled with a moderate inflationary response to the US Federal Reserve’s interest rate hikes, makes Cambodia an attractive investment destination, particularly for Chinese investors.

He said that Cambodia’s priority exportation is garment, footwear, and travel goods (GFT), however, recent data have shown a decrease of about 15 percent, therefore, the CDC is seeking to strengthen other export avenues, especially agricultural products such as rubber. The total investments from the Chinese businessmen into the Kingdom’s tire production reached over $1 billion and these projects have added value to the nation’s industry as well as created thousands of jobs for the Cambodians.

In an interview with Estatedia, His Excellency Penn Sovicheat, Secretary of State and Spokesperson for the Cambodian Ministry of Commerce acknowledged the impact of global inflation on the Cambodian economy but emphasized that its effect is moderate due to shifting consumer trends.

“While global inflation is undeniable, its impact on Cambodia is mitigated by changing consumption patterns,” explained His Excellency. “Across many countries, individuals are prioritizing essentials like food or winter coats over non-essential items.” He sees this trend as a potential buffer against economic turbulence.

His Excellency expressed optimism and confidence in Cambodia’s economic resilience, citing that Cambodia has built strong trust with its customers and the country’s established position in global production chains. “We expect the global situation to eventually return to normal, much like it did during the COVID-19 pandemic,” he added, expressing faith in the world’s ability to overcome economic challenges.

“The Ministry of Commerce is actively striving to maintain stability in existing markets, ensuring fair prices and preventing unnecessary product shortages,” he assured. “Cambodia is strategically expanding its reach to new markets, particularly in Africa, the Middle East, and within RCEP countries, which boasts a 60% global market share,” he elaborated, stressing the potential of these untapped markets.

His Excellency also underscored the importance of promoting Cambodia’s agricultural exports, a key sector for the nation’s economy. Additionally, he highlighted the development of robust online sales channels, further diversifying economic opportunities.

Cambodia’s international trade stood at $46.82 billion in 2023, recording a decline of 1.9 percent compared to 2022. While exports were marginally up by 1.8 percent, the imports showed a decline of five percent, according to the trade data released by the General Department of Customs and Excise (GDCE) yesterday.

The Kingdom’s total exports in 2023 stood at $22.64 billion while the imports were estimated at $24.18 billion. The country recorded a trade deficit of $1.53 billion last year.

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