Banking, Money and Taxes in Cambodia
The introduction of the current currency in Cambodia only came into place in 1980. From 1975 to 1980, the country had no monetary system. Under the Pol Pot regime, The Khmer Rouge abolished money and blew up the National Bank building in Phnom Penh. Because of this, most Cambodians prefer to use foreign currency.
Cambodia is still a cash-dominated society. Credit cards are accepted in more urbanised and tourist areas, however if venturing out further than the capital, it is best to have some local and foreign currency on one’s person.
Money in Cambodia
The currency in Cambodia is the riel, abbreviated as KHR or just an ‘r’ after the sum, divided into a hundred sen.
Notes: 100r, 200r, 500r, 1000r, 2000r, 5000r, 10,000r, 20,000r, 50,000r and 100,000r.
Coins: not in circulation.
The US dollar is also widely used and accepted throughout the country. Most prices will be listed in US dollars, but expats should note that change may be given in riel. Also used – though mostly in the west – is the Thai baht.
Credit cards are widely accepted in tourist areas, but it is best to have some riel on hand for taxis, snacks and other inexpensive items.
Banking in Cambodia
There are many banks located throughout Cambodia, especially in the capital. ATMs which are widely available, dispense both US dollars and riel. The Cambodian currency is nonconvertible, so expats should make sure they have used all their riel when leaving the country.
Popular banks include Acleda Bank, Canadia Bank and ANZ Royal Bank.
Opening a bank account
Most banks are open from Monday through Friday, from 8am to 3 or 4pm. Some banks are even open on Saturday mornings.
Requirements to open a bank account include:
A minimum balance in one’s account (set by the bank)
Proof of business visa
Proof of employment
Proof of identification
Proof of residency
Expats should note that many Cambodian banks do not give loans to foreigners, however they may offer a credit card.
Taxes in Cambodia
If a person is considered a resident in Cambodia, they are eligible to pay tax. A resident is classified as a person who has lived in Cambodia for at least 182 days during a 12 month period.
Depending on the company, monthly salaries for expats will often be paid in US dollars, rather than the riel. Expats will be subjected to income tax, calculated in relation to how much they earn.