Capital Gains Tax Implementation Postponed to January 2024

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Updated on April 18, 2023

After getting pushed back due to the pandemic, capital gains tax (CGT) in Cambodia was again delayed for the third time and will be in place starting January 1, 2024. The reason for postponement is to show support to the “strategic framework and programs for economic recovery for the years 2021 to 2023,” proposed by the Ministry of Economy and Finance and to which Prime Minister Hun Sen approved.

Phnom Penh, Cambodia

Capital gains tax to be carried out from January 1, 2024

This means that a 20 percent tax will soon be required from individuals selling or transferring titles of capital assets such as land, properties, leases, and financial holdings.  

Local businesses have always been subject to CGT, making the upcoming arrangement simply an expansion of the tax law.  

This was announced by the Department of Property and Real Estate Tax at the General Department of Taxation (GDT). The initial introduction of this tax had been done by the Ministry of Economy and Finance in April last year.  

According to the law drafted by the GDT, the CGT shall apply to both resident and non-resident taxpayers for immovable properties, leases, investment assets, intellectual property, and foreign currency. 

It is levied on profits gained upon sale or transfer of titles and will give the seller three months to pay. In cases where no profit is made, the seller will not be obligated to pay CGT. 

As the expanded law has been in talks for over a year now, taxpayers will have had sufficient time to prepare and educate themselves on this new fiscal responsibility. 

Additional tax revenues will also benefit the Kingdom by offsetting lost tax revenues from pandemic-related economic decline. 

You may also like: Ultimate Guide on Cambodia Property Tax

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