Working in Cambodia is rarely as simple as it seems. Whether you’re a software developer, oil and gas worker, business analyst, telecommunications contractor or an IT project manager, you have a lot to consider before you move. How does the tax system work? Will you still be eligible for tax in your home country during your Cambodian job? Is moving to a new contract allowed on your work permit? We know these questions are hard to answer, and finding the truth with ever-changing regulations isn’t easy.
Are There Any Restrictions on Cambodia Work Permits?
The work permit system is the first hurdle you’ll encounter on the way to working in Cambodia. For full-time employees, work permits are simple. Employers “sponsor” you for your work permit for the duration of your contract, and your family will be able to come over with you. Sponsorship reassures the immigration authorities that you’ll be able to support yourself during your stay. However, if you’re planning on contracting in Cambodia then you generally can’t be sponsored by the end client. Additionally if your client can sponsor you then each time you get a new contract, you’ll have to change your permit accordingly, creating more tedious paperwork.
How Does the Tax System in Cambodia Work?
The worst thing about tax systems is that the majority are extremely complex and they’re continuously updated. Without a full understanding of taxation in Cambodia, you could pay too much, and mistakenly think you don’t have to pay taxes in your home country too. For short term contracts you are often also eligible for some tax in your home country due to your tax residency, but there are usually agreements in place to ensure that you don’t pay income tax twice on the same money. Finding out about specific rates is difficult, and if you’re new to employment in Cambodia it’s easy to make mistakes.
Is There a Way to Make Working in Cambodia Easier?
A popular solution to the issues contractors face when taking a job in Cambodia is to use a contractor management company (or “umbrella” company). They essentially employ you – collecting and processing your wages, paying your taxes and sponsoring your work permit – but you still operate as a contractor. This way you can be sponsored under one permit for multiple contracts and minimise admin. They’re also experts in local tax law, so you’ll keep the biggest proportion of your earnings possible through the Cambodian tax system. All you have to do is send in timesheets for your hours and they’ll do everything else for you. You’ll get documentation for your personal records, and you’ll comply with local law without wasting time.
How We Help with Working in Cambodia
We work closely with numerous contractor management companies in Cambodia. We have a detailed understanding of their offerings, and have specialists in both Cambodia taxation and work permits. Our partners can make your move simpler, ensuring that your family can join you and alleviating the stress of immigration. We also give professional, impartial advice to help you enjoy life in Cambodia without getting caught up too much in the complications of doing business. The laws governing Cambodian employment change so regularly it’s very hard to keep up. We’ll ask the experts directly, and ensure you get up-to-date, accurate information. There is no charge whatsoever for our service and you are under no obligations. Get on the phone now for some free advice!