PM Hun Sen Urges an Increase in Stamp Duty

• 18 August 2018
• Local News
• 5097 Views

Photo by Chiangrai Times

In a visit to garment workers on Wednesday 15 August, Prime Minister Samdech Techo Hun Sen urged the Ministry of Economy and Finance (MEF) to revise the country’s ‘stamp duty’, or property transfer tax, saying the current tax is too low.

Citing the increase of land prices as a result of political and economic stability, Prime Minister Hun Sen called on H.E Kong Vibol, a Delegate of the Royal Government in charge as Director General of the General Department of Taxation (GDT) to carefully check the issue.

“Based on my investigation, the Ministry of Economy and Finance is currently applying the stamp duty tax on land that was set three or four years ago, but the current market rate is not like that, so please check that carefully Kong Vibol,” he said

Stamp duty is a tax levied on administration documents, court documents, non-court document and panos/posters as stated by the General Department of Taxation (GDT).

Regarding stamp duty on property (land, houses, buildings, and other types of construction) it is set at a rate of 4% on the transfer of the ownership or possessory right of the property in the form of a sale, gift, share capital contribution in-kind of the property into the company, or whatever means by which causes the transfer of said rights.

Tax collection in the first six months of 2018 reached 61.28% of the yearly plan with construction and property taxes having a sharp increase, which amounted to more than US$1 billion of the total tax revenue. Tax collection on Transfer Property Tax increased up to 31% compared to the same period last year. (Read more)

• Analysis