Tax Obligations for Condos Under Construction

21 April 2022
Local News
2280 Views

During the COVID-19 pandemic crisis, construction on many condo projects was delayed or suspended. Are these under-construction condo projects subject to property tax?

According to officials from the General Department of Taxation (GDT) during the Q&A Facebook live session on 21 April, whether or not the condo project is subject to tax depends on two conditions.

By law, condos, or any construction projects with construction less than 80% completed and without occupancy/usage, are not subject to tax. The tax exemption is only valid if the project meets both conditions.

If the project does not fall into one of the two, then it is subject to tax. For example, the construction is only 50% completed, but the building has been in use, then the owners must pay tax. Similarly, if construction is over 80% complete even with or without occupancy, then the owners must also pay tax.

However, in whichever case, the owner must pay tax on their land.

Tax on condos and land is a property tax collected at the rate of 0.1% annually for any real estate worth more than 100 million riels.

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