Stamp Duty Exemption Costs the Gov’t Nearly US$2 Million in Revenue

• 5 July 2023
• Uncategorized
• 1796 Views

Over the period spanning from February 25, 2020, to May 2023, the General Department of Taxation (GDT) has granted stamp duty exemption on the transfer of ownership or possession of immovable properties. According to the GDT’s weekly newsletter published on June 29, a total of 1,022 documents were exempted, resulting in a cumulative tax amount of KHR 7.99 billion, equivalent to nearly US$2 million.

The GDT emphasizes the importance of accurate sales contracts based on the actual market value for all housing development companies.

“In cases where purchase prices are reduced below the market value, the GDT, under the Ministry of Economy and Finance, will conduct reviews to ensure compliance.” said the GDT representative.

To further promote affordable housing, the Cambodian government has made the decision to extend the exemption of stamp duty tax on the transfer of ownership or possession of real estate for all types of homes valued at US$70,000 or less until the end of 2024. This initiative aims to encourage individuals to invest in affordable housing options.

While the stamp duty exemption serves as a key measure to facilitate affordable housing, the impact on government revenue cannot be overlooked. As the government continues to prioritize housing accessibility, striking a balance between incentivizing homeownership and maintaining fiscal stability remains a crucial task.