On 28 September 2022, the Cambodian government issued a new Sub-decree on the annual taxable income and monthly tax on salary (“Sub-decree 196”) to repeal the previous Sub-decree no. 09 dated 13 February 2020. This new Sub-Decree establishes a new taxable rate for an individual, sole proprietorship, and distributive share income to the non-legal entity as well as the monthly tax on the salary of resident employee. Surprisingly, there is a rise in the tax exemption rate for both annual taxable income and monthly tax on salary under the new law which is advantageous for the taxpayer. These new tax rates will be effective on 1 January 2023.