General Directorate of Taxation
Monday, July 1, 2024
Source/Copyright: General Department of Taxation (GDT) Cambodia
Advertising Billboard Tax
A. What is the Advertising Billboard Tax?
The advertising billboard tax is an annual tax levied on all types of advertising billboards, both mobile and immobile, within the Kingdom of Cambodia.
B. Key Definitions
An advertising billboard refers to:
- Commercial advertising banners made of rubber, regular paper, cloth, or other materials.
- Business signs used to identify the name, location, head office, office, or place of business operations.
- Text boards or image boards used for commercial purposes.
C. Tax Exemptions and Incentives
Advertising billboard tax is exempted for billboards with non-profit objectives, such as:
- Signs of state institutions.
- Signs of foreign embassies or consulates, national and international organizations, technical cooperation agencies of other Royal Governments, non-governmental organizations (NGOs), and various associations.
- Advertising billboards with social education and public interest goals, including environmental care and protection, stopping domestic violence, protecting natural resources, traffic education, and health education.
D. Tax Base, Tax Rates, and Tax Calculation
| No. | Type of Advertising Billboard | Tax Rate | Additional Conditions |
|---|---|---|---|
| 1 | Commercial advertising banners made of regular paper | ||
| a | Surface area not exceeding 40 dm² | 500 KHR / page | If there are foreign letters: 1,500 KHR / page |
| b | Surface area exceeding 40 dm² | 700 KHR / page | If there are foreign letters: 2,100 KHR / page |
| 2 | Commercial advertising banners made of rubber, cloth, or other materials | ||
| a | Surface area not exceeding 40 dm² | 700 KHR / billboard | If there are foreign letters: 2,100 KHR / billboard |
| b | Surface area from over 40 to 100 dm². | 1,000 KHR / billboard | If there are foreign letters: 3,000 KHR / billboard |
| 3 | Business Establishment Signs | ||
| a | Without light, installed parallel to the road | 100 KHR / dm² / year | Additional condition for 3 & 4: If there are foreign letters, an additional tax of 200 KHR is charged per character and per height of 1 dm or fraction thereof. |
| b | Without light, installed perpendicular to the road | 150 KHR / dm² / year | Additional tax: 300 KHR |
| c | With light, installed parallel to the road | 200 KHR / dm² / year | Additional tax: 400 KHR |
| d | With light, installed perpendicular to the road | 250 KHR / dm² / year | Additional tax: 500 KHR |
| 4 | Text Boards or Image Boards for Commercial Purposes | ||
| a | Without light, installed parallel to the road | 500 KHR / dm² / year | Additional tax: 1,000 KHR |
| b | Without light, installed perpendicular to the road | 700 KHR / dm² / year | Additional tax: 1,400 KHR |
| c | With light, installed parallel to the road | 700 KHR / dm² / year | Additional tax: 1,400 KHR |
| d | With light, installed perpendicular to the road | 1,000 KHR / dm² / year | Additional tax: 2,000 KHR |
| e | Attached, connected, or painted directly on various means of transportation | 1,500 KHR / dm² / year | Additional tax: 3,000 KHR |
Note on additional conditions for rows 3 & 4: If foreign letters are present, an additional charge applies per character and per height of 1 dm (or fraction thereof) based on the specified rates (e.g., 2,000 KHR for 4d).
Example Calculation:
A commercial advertisement billboard is displayed along the road with light, installed perpendicular to the road, with a size of 2m x 4m, containing the foreign letters “C” (height = 60 cm) and “LEAR” (height = 50 cm). Calculate the tax for this billboard.
1. Tax on Image Board:
- Size: 2m x 4m = 20dm x 40dm = 800 dm²
- Tax rate (Category 4d): 800 × 1,000 KHR = 800,000 KHR
2. Tax on Foreign Letters (Height):
- Letter “C” = 60 cm = 6 dm
- Letters “LEAR” = 50 cm = 5 dm × 4 characters = 20 dm
- Total letter height/units = 6 dm + 20 dm = 26 dm
- Tax on foreign letters (Category 4d additional condition): 26 × 2,000 KHR = 52,000 KHR
Total Tax to be Paid: 800,000 KHR + 52,000 KHR = 852,000 KHR
E. Procedures for Tax Declaration and Payment
This tax is a self-declaration tax type.
- Taxpayers managed by the Large Taxpayer Department and Khan Tax Branches must file declarations and pay tax at the Phnom Penh Tax Authority of the GDT.
- Taxpayers managed by Provincial Tax Branches must file declarations and pay tax at their respective managing Provincial Tax Branch, or via the GDT Taxpayer App mobile application.
- Business owners must declare and pay the advertising billboard tax from January 1 to March 31 of each tax year.
Rules for declaration and payment are implemented as follows:
- New advertising banners made of paper, rubber, cloth, or other materials must be declared completely before conducting the commercial advertisement.
- For newly produced business signs and text/image boards intended for commercial advertising, declarations must be completed before advertising according to the following periods:
- First 6 months of the year: Must pay 100% tax.
- Last 6 months of the year: Must pay 50% tax.
- In cases where a business sign includes a banner/sign of another enterprise or business entity, the tax shall be calculated according to the portion belonging to each respective enterprise or business, as well as the type of banner.
- Logos, addresses, phone numbers, and website URLs containing foreign letters on the advertising billboard are exempted from the additional foreign letter conditions.
