General Department of Taxation Publishes Annual Market Interest Rates for Loans in 2025
On January 20, 2026, the General Department of Taxation (GDT) released a notification on the Market Interest Rate for Loans in 2025, in accordance with the provisions of Article 15 of the Payroll Tax Act, and Instruction No. 7015, regarding the implementation of tax withholding obligations on fringe benefits for loans provided to employees.
The GDT determined the market interest rates for loans in 2025 based on the average annual lending rates of 12 major domestic commercial banks:
- 9.36 per cent per year for Khmer Riel (KHR)
- 8.45 per cent per year for US Dollars (USD)
The GDT clarifies that these interest rates are to be used exclusively for calculating tax withholding obligations on fringe benefits related to employee loans. All tax units and enterprises operating under the self-declaration regime must comply with the contents of this notice correctly and efficiently.
Market interest rates are set by tax authorities to be used for calculating interest received or paid in various transactions, such as interest on loans between related parties, or for the purpose of determining a market price. The GDT issues this notice annually to determine the market interest rate for each year.
