Four communes in Ta Khmau to obtain tax exemption on properties until 2023

• Sovandy Van
• 7 April 2020
• Local News
• 7222 Views

Four communes in Takhmau city of Kandal province will be exempted from property taxes until 2023. Those communes are Svay Rolum, Koh Anloung Chen, Sitbo, and Rakar Khpos communes divided from S’ang and Kandal Stueng districts of Kandal province. This tax exemption aims to provide relief for those commune residents who never experienced tax duty previously, according to a Prakas issued by the Ministry of Economics and Finance (MEF).

The main reason for this tax exemption is due to all the four communes previously being under the district administration, so no property taxes were imposed. However, now after these four communes are part of the Ta Khmau town administration, all property taxes must be paid. This was explained by Meas Soksensan, spokesman of MEF, via WhatsApp with Construction & Property Magazine.

“Given the difficulties of residents there, the MEF decided to introduce a Prakas on property tax exemption until 2023 to teach them about the tax payment procedures and tax obligations ahead,” said Mr. Meas.

“All property owners in these four communes are obliged to register their real estate at the Kandal Provincial Tax Branch or at the Department of Movable and Immovable Properties of the General Department of Taxation. However, they do not need to file a declaration and pay tax on those properties”, according to the Prakas No. 347 dated 02 April 2020 of the Ministry of Economy and Finance.

“If the property taxes in all four communes have already been paid, the amount of allowance tax is allowed as a referral credit to cut the property taxes for subsequent tax years. In addition, the property owners must also apply for the tax credit on those properties already paid for to cut the property tax for subsequent tax years”, the Prakas reads.

Reminded that the Prakas on Property Tax No. 493 MEF, of the Ministry of Economy and Finance, dated 19 July 2010, specifies that all properties located in the capital and provincial areas of the Kingdom of Cambodia must be on duty of property tax. This tax is levied on properties worth more than 100, 000, 000 (one hundred million) Riels. This taxable property does not include agricultural land, except for the portions of that land that are used to build houses, buildings or any structures that do not directly serve agricultural activities.

Photo: opendevelopmentcambodia.net

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