Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialise in helping workers make the most out of their contracts.

They’re called Umbrella Companies (or, contractor management companies).

Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.

Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in Cambodia. Even better, most are experts in Cambodian and expat tax law, meaning they’ll also help you optimise your earnings in Cambodia.

Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.

Can I Organise My Taxes and Work Permit Myself?

Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Cambodia.

If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.

Also, are you familiar with the intricacies of the tax system in Cambodia, as well as your own country’s laws on overseas earnings? If so, good on you!

However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Cambodia and your home country can seem like full-time work in itself.

A Contractor’s Guide to Taxes in Cambodia

One of the most consistently challenging aspects of contracting in Cambodia is complying with the country’s tax system. As well as paying tax in Cambodia, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income in Cambodia

If you’re working in Cambodia under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Cambodia for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Cambodia, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Cambodia through PAYE is left with the prospect doing everything themselves.

Do you know much about Cambodian Tax Law? Does Cambodia have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Cambodia can range from 0 to 20 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Filing as a Contractor in Cambodia

When Do You Need to Lodge Your Tax Return?	15th of the following month
Tax Filing Deadline	15th of the following month
Can you file it online?	Yes, https://www.tax.gov.kh/

How to File Taxes in Cambodia as a Contractor

Tax Figures in Cambodia

Currency	Cambodian Riel (KHR)
Tax-free Threshold in Cambodia	KHR800,000
Income Tax Rates	Grossed Income Tax Rate (%) 0 - 1,000,000 0% >1,000,000 - 1,500,000 5% >1,500,000 - 8,500,000 10% >8,500,000 - 12,500,000 15% >12,500,000 20%
Notes	The above tax rates refer to monthly employment income. Non-residents: Non-residents are taxed at a flat rate of 20%. Tax Reliefs: Resident individuals may be given a tax relief of KHR75,000 per child under 14 years old or up to 25 years old if still at school, and per unemployed dependent spouse.

Tax Residency in Cambodia

When do you become a tax resident in Cambodia

You become a tax resident in Cambodia when:

Does the 183 day rule apply in Cambodia

Am I taxed on my global income in Cambodia

Can you set up your own Limited Company in Cambodia?

How long does it take to set up	99 days
How much does it cost	KHR2,461,236
Is it easy?	Starting a Business Rank: 183/190 (Source: World Bank)

Tax Calculator in Cambodia

Using an Umbrella Company for Income Tax in Cambodia

How We Can Help You with Tax in Cambodia

A Contractor’s Guide to Work Permits in Cambodia

Immigration is one of the primary concerns for any contractor hoping to start working in Cambodia. Permanent employees will find it easy to get their Cambodian work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer.

The Cambodian work permit, known more commonly as the E Visa, is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Cambodia is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.

Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.

When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.

While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in Cambodia (which means avoiding fees, fines, or even worse penalties).