Gov’t Extends Tax Incentives to Boost Real Estate to End of 2024

• Sommana Yan
• 8 January 2024
• Local News
• 2103 Views

The Cambodian government has announced an extension of the tax grace period to bolster the real estate sector and facilitate access to affordable housing for low- and middle-income citizens amidst global economic uncertainties.

The decision, outlined in a notification from the Ministry of Economy and Finance dated 4 January, involves the continued exemption of stamp duty on the transfer of ownership or possession of all types of housing within Borey developments valued at US$70,000 or less until the conclusion of 2024.

Furthermore, for borey housing exceeding the US$70,000 threshold, individuals can deduct US$70,000 as the tax base for property purchases within registered borey development projects, presenting an additional incentive for prospective homeowners until the end of 2024.

The Royal Government’s commitment to fostering a conducive environment for real estate transactions is underscored by the extension of the suspension of six types of capital gains tax—covering property, finance leases, investment assets, goodwill, intellectual property, and foreign currency—until the conclusion of 2024. Moreover, the exemption of administrative sanctions for property tax has been prolonged until the end of 2024, providing further relief for property owners.

The suspension of the tax on unused land until the end of 2024 signifies a significant policy measure, relieving owners, occupants, or final beneficiaries of the obligation to declare the tax during this extended period.

It’s imperative to note that all exemptions, concessions, and suspensions mentioned above do not impact tax payments or previously paid administrative sanctions. This comprehensive initiative by the Cambodian Government reflects its commitment to stimulating the real estate sector, fostering affordable housing solutions, and addressing the economic challenges of the present times.

• Laws and Regulation