In an announcement on January 4, 2024, the Ministry of Economy and Finance in Cambodia revealed that the Royal Government of Cambodia has decided to continue the principle of exemption, preferential tax, extension, and suspension of tax implementation for various types of real estate in the country. The following measures will be implemented:
1. Transfer Tax or Registration Tax
- Stamp duty exemption for the transfer of ownership or possession of all types of housing, including boreys (gated communities), valued at $70,000 or less, will be extended until the end of 2024.
- For each unit in a borey that exceeds $70,000 in value, a deduction of $70,000 will be allowed from the stamp duty base.
- Additional stamp duty concessions will be provided for the transfer of ownership or possession of housing in the form of Boreys valued at over $70,000.
- A deduction of $70,000 from the stamp duty base will be allowed for the purchase of housing in development projects from registered housing development companies.
2. Capital Gains Tax
- The implementation of capital gains tax has been postponed until the end of 2024. This applies to six types of assets, including real estate, leases, investment assets, business brands, intellectual property, and foreign currency.
3. Tax on Immovable Property or Property Tax
- Properties that have already been registered and subjected to property tax in the past will not be eligible for any tax rebates or administrative penalties until 2023.
- From 2024 onwards, existing laws and regulations will be followed for property tax.
- For properties that have not been registered and subjected to property tax, registration and payment of tax are allowed starting from the year of occupancy or the date of the last benefit.
- The exemption of administrative sanctions, including additional taxes and interest, has been postponed until the end of June 2024.
4. Unused Land Tax
- The unused land tax has been suspended until the end of 2024.
- Owners, occupants, or final beneficiaries of such land are not obliged to declare the tax until the end of 2024.
- The Ministry of Economy and Finance will issue legal documents on unused land tax to ease implementation from 2025 onwards.
- Land subject to the unused land tax can be deducted up to 5 hectares per plot.
- Certain conditions for exemption from the tax on unused land have been outlined, including land being cultivated, serving economic activities, under government ownership, or leased by legal entities or natural persons.
It is important to note that taxes already paid, including administrative penalties, will not be affected by these tax exemptions and suspensions.
These measures aim to stimulate the real estate sector and encourage investment in Cambodia. The extension of tax exemptions and preferential policies provides a positive outlook for both buyers and developers, contributing to the growth of the real estate market in the country.
Notice on the Extension of Tax Exemption, Additional Tax Exemption, Extension, and Suspension of Taxation for Real Estate Sector in Cambodia, Released by General Department of Taxation on January 4, 2024