Boy! Did WE time it right! "No more long term visas..."

[andy 1,058]

The tax on salary is a monthly tax imposed on salary that has been received within the framework of fulfilling employment activities. A physical person resident in the Kingdom of Cambodia is liable to the tax on salary for Cambodian source salary and foreign source salary.

 

http://tax.gov.kh/en/btos.php

[Parrothead 2,566]

Retirement/Student Visas

Meanwhile, the Immigration Department has revealed two new types of visa – retirement visas (ER) and student visas (ES). The prices for these visas will match those for the EB visas, ie. $160 for six months and $290 for one year.

While the ES visa requires an official letter from the student’s educational institute confirming their enrolment, the ER requires absolutely no documentation from the retiree. However, if immigration officials catch an ER holder working in Cambodia, considerable fines and potentially jail time and deportation are to be imposed.

Non-working spouses can also apply for EB visas, but must provide a letter from the company employing their partner confirming their status in Cambodia in their visa application.

It is advised to foreign workers in Cambodia to keep a copy of their work permit/employment card on their person at all times.

 

While it certainly contradicts what we were told, that article had not even been posted online, at the time we sent my passport to Phnom Penh (We sent it by bus, on 14/08/2017). So, we had to go by what the Immigration Office personnel told us to send.

 

The tax on salary is a monthly tax imposed on salary that has been received within the framework of fulfilling employment activities. A physical person resident in the Kingdom of Cambodia is liable to the tax on salary for Cambodian source salary and foreign source salary.

 

http://tax.gov.kh/en/btos.php

 

If a foreign government, anywhere I live, attempts to force me to pay ANY portion of my retirement in the form of taxes - simply because I reside in their country, no worries. Planes leave every day. I spend the vast majority of my income IN the country where I reside, every month. I will not be subject to extortion.

[andy 1,058]

 

 

If a foreign government, anywhere I live, attempts to force me to pay ANY portion of my retirement in the form of taxes - simply because I reside in their country, no worries. Planes leave every day. I spend the vast majority of my income IN the country where I reside, every month. I will not be subject to extortion.

 

Unfortunately they are the laws. Like every country in the world have laws. Regarding tax, if the person in question was in his/hers own country of residence they would be subject to tax, and any foreigner residing in that country too.

[Parrothead 2,566]

Unfortunately they are the laws. Like every country in the world have laws. Regarding tax, if the person in question was in his/hers own country of residence they would be subject to tax, and any foreigner residing in that country too.

 

I can't say about living in the US, due to being a citizen of the US. But, I would be interested in learning if the US government taxes foreign nationals who live there on a retirement income - from monies earned in another country. 

 

If they attempt to tax me here, this will be the first country I have ever resided in, that has attempted to do so - outside the USA. I will not pay them tax on monies / income I earned outside Cambodia. If, however, I worked here and earned money, I would gladly pay tax on those funds. I did so during the time I owned a business in the Philippines. 

Edited August 27, 2017 by Paul

[andy 1,058]

 

 

I can't say about living in the US, due to being a citizen of the US. But, I would be interested in learning if the US government taxes foreign nationals who live there on a retirement income - from monies earned in another country.

 

https://www.irs.gov/businesses/the-taxation-of-foreign-pension-and-annuity-distributions

[Parrothead 2,566]

https://www.irs.gov/businesses/the-taxation-of-foreign-pension-and-annuity-distributions

 

Such is life. But, I wouldn't be a foreign national in my own country. So, it wouldn't apply to me anyway. What I am talking about is, no country - Thailand, Philippines, Australia, nor New Zealand, have taxed my retirement income, during the time I resided in their respective countries.

 

AND, something else to think about here. IF the Cambodian government does NOT require an applicant to provide proof of retirement income - according to the article you posted, how are they going to know how much an applicant's retirement income is?

 

Either way, as I have previously stated, if they were to attempt to force me to pay taxes on my retirement income, I will fly out on the next available plane, or by crossing the border into another country. So, the point is moot for me, anyway.

[lokias 17]

So if i am reading all this correctly then the retirement visa is just as easy to get as the business visa used to be? I had planned on giving Cambodia a try for a year long stay in the next year or so. I hope you guys on the ground will keep up up-to date on how it works out with the taxing overseas income and retirement visa filing requirements.

 

Right now it just sounds like they are cracking down on people working without a work permit. If have a visa right now for one year visa right now are you good till next filing or do you have to show a work permit or convert to retirement ASAP?   

[andy 1,058]

Tax in Cambodia

Individuals resident in Cambodia are liable to Tax on Salary (ToS) on their Cambodian and foreign source income, at progressive rates ranging from 5% to 20%. An individual is considered a tax resident if he/she:

1. is domiciled in Cambodia, or
2. has a principal place of abode in Cambodia or has available for use a house, apartment, dormitory, in which he/she usually stays or occupies, or
3. is present in Cambodia for more than 182 days in any period of 12 months ending in the current tax year.

A non-resident is any person who is not a resident. A non-resident is only liable to ToS on Cambodian-source income (at 20%).

An employer is liable to pay Fringe Benefit Tax (FBT) on benefits paid to employees that are not considered to be salary (at 20% of the value of the benefit).

There is no mechanism for individuals to register with the Tax Office and remit their salary tax or other tax liability directly to the Tax Office. At present, only registered employers have an obligation to withhold the tax on salary from the employees for their employment activities in Cambodia. Currently, Cambodia does not require individual residents to file an annual personal income tax to the Tax Office. As a result, the ToS withheld by the registered employer should be the final tax for each employee for fulfillment of employment activities in Cambodia.

On this basis, foreign pension income is not taxable income in Cambodia unless:

1. it is provided to Cambodian residents by a Cambodian employer, or
2. it is provided by a company which has established a Permanent Establishment or tax presence in Cambodia, and even then the company may need to be a registered taxpayer in Cambodia and carrying on business there, or
3. it relates to fulfilling employment activities in Cambodia.

Therefore, based on an STM QROPS, the pension income would not be taxable income in Cambodia.

Net worth, gift, inheritance, and estate taxes are not imposed in Cambodia. Cambodia has no DTA’s.

 

A little bit more searching - hope this helps.

[Parrothead 2,566]

Well, mine was refused. They gave me an EB again, due to being "too young". Trouble is, a guy in Phnom Penh told me they approved his, with him being my age. I will get Chan to ring them tomorrow, regarding this.

[andy 1,058]

 

 

If a foreign government, anywhere I live, attempts to force me to pay ANY portion of my retirement in the form of taxes - simply because I reside in their country, no worries. Planes leave every day. I spend the vast majority of my income IN the country where I reside, every month. I will not be subject to extortion.

 

We are all in the same boat. We may all look at our options of the best means of stay. To be honest the country is run on extortion by the high up money people.

We all spend the vast majority of are monies in any country we reside. So do the locals and somewhere along the line they pay the tax on yours and my money. And I suppose we do too on purchases along the way.

 

Talking about Planes at this moment in time is not on my mind. And would you just give up every thing you have done on the farm.