Cambodian Gov’t Extends Stamp Duty Exemption on Homes Up to USD 70,000 Until End of 2025

• 13 October 2024
• Property Focus
• 2679 Views

The Ministry of Economy and Finance has announced an extension of the stamp duty exemption for transferring ownership or possession of all types of borey housing valued at USD 70,000 or less, continuing this benefit until the end of 2025. This initiative aims to stimulate the real estate market by offering substantial tax relief to potential homeowners, according to notification No. 014 MEF.S.C.N. dated 9 October 2024.

The stamp duty policy will also allow for a USD 70,000 deduction from the stamp duty base for purchasing higher-valued homes in registered borey housing projects. Eligible transactions must meet specific conditions, including acquisition from a licensed housing developer with a registered sales contract reflecting the actual market price, applicable from 25 February 2020 through 2025.

The ministry emphasizes that any exemptions and tax concessions granted under this scheme must comply with all legal requirements, with the General Department of Taxation retaining the authority to audit and ensure accurate market value reporting by developers.

In addition to the extended stamp duty exemption, other significant property tax relief measures have been confirmed.

1. Capital gains tax on real estate owned by natural persons has been postponed until the end of 2025,
2. Property tax exemptions will depend on property type and occupancy documents, and
3. Unused land tax obligations will be suspended until the end of 2024. These provisions aim to alleviate the tax burden on homeowners and developers while supporting the property sector’s growth.

It is important to note that these exemptions and deferrals do not apply to taxes that have already been paid or administrative penalties.

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