Gov’t Unveils Eight Measures to Support Construction and Borey Development

• Sommana Yan
• 18 April 2023
• Local News
• 3698 Views

The Ministry of Economy and Finance has recently announced eight measures to support the development of the construction and real estate sectors in the Borey industry amidst global economic uncertainty. According to the press release on 12 April 2023, the Economic and Monetary Policy Committee has outlined a package of measures to facilitate the growth of the real estate sector in Cambodia.

Those package measures include:

• Continue tax payment delay until the end of 2024 for housing development company Chea Borey, which has been operating with real estate business licenses provided by regulators and mortgages. Companies without a real estate business license must register their projects by the end of 2023 to receive continued tax payment as a package until the end of 2024.
• the package tax payment period for housing developers in Borey who pay less than $1 million will be increased from 12 months to 18 months, and from 24 months to 36 months for those who pay more than $1 million.
• New Borey housing developers or companies that plan to develop undeveloped housing must comply with proper accounting records and tax payment procedures in force (actual regime).
• Continue to postpone the implementation of capital gains tax only for the real estate sector until the end of 2024. There will also be a continuation of stamp duty exemption on the transfer of ownership of all types of housing in the form of Boreys with a value of less than or equal to $70,000 until the end of 2024. (Read more)
• Encourages banking and financial institutions to reorganize loans based on the actual ability of the institution, in accordance with Prakas No. B0.017.344. December 1, 2017, on Credit Risk Classification and Provision for Immunization.
• Developers must fulfill their obligations in accordance with Prakas No. 089 MEF.PrK on “Management of Real Estate Development Business,” except for various penalties for housing development projects in Borey.
• Postponement of implementation until the end of 2023 on Proclamation No. 563 MEF. Dated 10 July 2020 on “Obligations to submit financial statements for independent audit issued by the Ministry of Economy and Finance.
• Finally, the Economic and Financial Policy Committee will establish a working mechanism to regularly monitor and evaluate the situation of the construction and real estate sector to propose more specific policy measures.

Overall, these measures aim to create a more conducive environment for the growth of the real estate sector in Cambodia, contributing to the country’s economic growth and development.

• Laws and Regulation