GDT Prepares to Impose New Tax Base for Stamp Duty

• 18 April 2019
• Local News
• 3934 Views

The General Department of Taxation (GDT) has been preparing to impose new tax base for stamp duty on property transfer through the launches of a series of seminars, according to a recent press release.

The preparation came to impose new tax base came after the Ministry of Economy and Finance (MEF) issued a Prakas on 22 March 2019 regarding the new tax base rate for property transfer ‘stamp duty’ which will be implemented from 01 July 2019 for construction or land across the capital and provinces.

According to the Prakas, MEF has divided property into 6 zone, including 1) area 2) main road 3) satellite road 4) gateway 5) commune or sangkat road, and 6) village road to assist in the implementation of the new tax base, with new rates varying by type and area.

However, GDT on 5 April 2019 said in its press release that it will set the new tax base not more than 70% of the actual market price.

Mr Chrek Soknim, President of Cambodian Valuers And Estate Agents Association (CVEA) could not comment on the new tax base rate citing that he does not have the new tax base table in hand.

Taxpayers are subjected to pay stamp duty tax at a 4% rate in line with the tax base set ten years ago, but to increase tax revenue and match with the growth in real estate in Cambodia, the government has decided to impose this new tax base. Read more

According to data GDT, in 2018 it had collected tax on property transfer in Phnom Penh about US$97 million on a total of 55,600 properties. In the first three months of this year, it collected US$24 million on a total of 20,500 properties.

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