Cambodia Among Countries With Low Annual Property Tax

• 25 September 2018
• Local News
• 1876 Views

Cambodia is among countries across the globe which has low annual property tax, according to an editorial article published by InvestAsian on 22 September, 2018.

According to InvestAsian’s author and founder as well as property investor in Southeast Asia Mr Reid Kirchenbauer, governments in some countries including Cambodia have set the annual property tax at a very low rate while some of them have zero tax.

Those countries include Thailand (no annual property tax), United Arab Emirates (zero percent), Cambodia (0.1%), Malaysia (no annual property tax) and South Korea (no annual property tax).

Meanwhile, regarding Cambodia’s annual property tax, Mr Reid Kirchenbauer highlighted that although Cambodia has an annual property tax, the amount is miniscule while the government has little concern over tax collection practice on the property.

In addition, he emphasised that most property owners in Cambodia do not pay tax on their property and he estimated that only about 5% of property owners will say they pay tax if asked.

According to the Cambodia’s General Department of Taxation (GDT), property owners of lands, houses, buildings and other constructions that are built on the land located in the municipality and provinces of the Kingdom of Cambodia have an obligation to pay annual property tax at a rate of 0.1% of the appraised value. The tax is applied on immovable properties valued in excess of 100,000,000 riels (one hundred million riels).

The Royal Government of Cambodia reformed the tax system in 2011, which requires the collection of property tax across the country in order to generate more revenue.

• Analysis