Service

Tax on Means of Transportation

General Department of Taxation

Tuesday, March 31, 2020
Source/Copyright: General Department of Taxation (GDT) Cambodia

Tax on Means of Transportation

A. What is the Tax on Means of Transportation?

The Tax on Means of Transportation is an annual tax applied to all types of transportation vehicles within the Kingdom of Cambodia.

B. Key Definitions

  • Means of Transportation refers to all types of transportation or vehicles such as ships, barges, boats, motorboats, speedboats, cars, semi-truck heads, trailers, semi-trailers, motorcycles, tricycles, tractors, and similar machinery.
  • Taxpayer refers to the owner of the means of transportation.

C. Tax Exemptions

The Tax on Means of Transportation is exempted for:

  1. Ambulances and fire trucks owned by the state.
  2. Vehicles owned by the Royal Cambodian Armed Forces (RCAF), National Gendarmerie, and National Police that are registered in the inventory of those institutions.
  3. Vehicles owned by foreign embassies or consulates, international organizations, or technical cooperation agencies of other governments.
  4. All types of motorcycles, tricycles, tractors, similar machinery, and all types of watercraft with an engine power of 150 HP or less.

D. Tax Rates and Tax Calculation

The tax rates for means of transportation are determined as follows:

  • a. Passenger cars (calculated based on cylinder size/engine displacement and year of manufacture)
  • b. Cargo trucks (calculated based on total weight)
  • c. Semi-truck heads, trailers, and semi-trailers (calculated based on total weight)
  • d. Passenger transport vehicles/buses (calculated based on the number of seats)
  • e. Ships or cargo watercraft (calculated based on loading capacity)
  • f. Ships or passenger watercraft (calculated based on length)
  • g. Ships or towing watercraft and fishing vessels (calculated based on engine power)

Calculation of Tax Payable

Taxpayers can look up the rates in Prakas No. 531 SHV.Prk of the Ministry of Economy and Finance, or use the mobile application GDT Means of Transportation Tax Calculation (available on both Android and iOS) to calculate the vehicle tax.

Example: Passenger Cars

  • a. A passenger car with Phnom Penh license plate 2T-1111, model LEXUS RX 350, engine size 3500 CC, manufactured in 2007.
  • b. A passenger car with Phnom Penh license plate 2AA-2222, model LEXUS RX 350, engine size 3500 CC, manufactured in 2015.

How much tax (in Riel) must each of the above vehicles pay for the year 2024?

Answer:

Based on Appendix II of Prakas No. 531 SHV.Prk, the tax on means of transportation to be paid for the year 2024 is determined as follows:

  • a. Vehicle with plate Phnom Penh 2T-1111 (manufactured in 2007) is a vehicle older than 10 years from its manufacturing date. The tax amount to be paid is 600,000 Riel.
  • b. Vehicle with plate Phnom Penh 2AA-2222 (manufactured in 2015) is a vehicle between 5 to 10 years from its manufacturing date. The tax amount to be paid is 1,000,000 Riel.

Example: Cargo Trucks

  • a. A cargo truck with Phnom Penh license plate 3A-4444, brand HYUNDAI, having a total gross weight (Total Weight = Vehicle Weight + Cargo Weight + Passengers) of 15 Tons.
  • b. A cargo truck with Phnom Penh license plate 3B-5555, brand HINO, having a total gross weight (Total Weight = Vehicle Weight + Cargo Weight + Passengers) of 25 Tons.

How much tax (in Riel) must each of the above vehicles pay for the year 2024?

Answer:

Based on Appendix I of Prakas No. 531 SHV.Prk, the tax on means of transportation to be paid for the year 2024 is determined as follows:

  • a. Vehicle with plate Phnom Penh 3A-4444 (HYUNDAI) with a total gross weight of 15 Tons must pay a tax amount of 1,000,000 Riel.
  • b. Vehicle with plate Phnom Penh 3B-5555 (HINO) with a total gross weight of 25 Tons must pay a tax amount of 2,000,000 Riel.

E. Obligations and Tax Declaration Procedures

This tax is a self-declared type of tax that requires owners to register their vehicles for tax payment at the General Department of Taxation, provincial-khan tax branches, partner banks of the GDT, or via the GDT Taxpayer App mobile application.

Owners must pay the tax from June 1st to November 30th of each tax year.

What documents are required for vehicle registration or information updates?

The registration or information update of a vehicle must be attached with the following documents:

  • Vehicle registration card (ID card) or import tax payment receipt.
  • Vehicle technical inspection certificate/inspection card (for passenger and cargo transport vehicles).
  • Letter confirming the use of locally modified vehicles (for modified vehicles).
  • National Identity Card, Passport, or Birth Certificate.
  • Tax Registration Certificate (Value Added Tax – VAT) for means of transportation that are assets of an enterprise.

When should vehicle information updates be made?

Taxpayers have the obligation to update vehicle information by submitting a letter and completing an application form at the tax administration in case there are changes such as: owner, address, phone number, license plate number, identification numbers (engine, chassis number), type, brand, color, horsepower, year of manufacture, cylinder size, or quantities (cylinders, axles, seats, doors, wheels), initial registration date, and total weight.

Note:

  • For means of transportation that have an import tax payment receipt issued in December, they are allowed to pay the tax for the following year.
  • For vehicles that have their first vehicle registration card issued in December, they must pay the transportation tax for that year but will be exempted from penalties.