Understanding Four Major Property-Related Taxes in Cambodia

• 13 April 2021
• Local News
• 5352 Views

In Cambodia, all real estate transactions are taxable. The four major property-related taxes as follows:

Property Transfer Tax or Stamp Duty Tax (4%)
A tax rate of 4% applies to all transfers of property. This tax is often paid by buyers, but it can be negotiable depending on their contracts. Taxpayers must pay the tax within 3 months after the property transfer. To date, this tax is exempted for houses or condos valued less than US$70,000 until December 2021. (Read more)

Property Tax (0.1%)
This tax is imposed at a rate of 0.1% on all immovable property that has an assessed value of over US$25,000 or 100 million riels. Thus, US$25,000 will be deducted from the base amount. Taxpayers must pay this tax every year.

Unused Land Tax (2%)
This tax is imposed on vacant land or land with an abandoned building on it in some cities and regions as determined by the committee for evaluation of unused land. Landowners are required to pay the tax at the rate of 2% of the value of the land determined by the committee. However, fully cultivated cropland is exempted. Tax on Unused Land shall be paid by the owner on land that does not fall under the scope of tax on Immovable Property. (Read more)

Capital Gains Tax (20%)
This tax was introduced in August last year and will be imposed from early 2022 onward. Thus, this means profit made from the sale or transfer of immovable property from early 2022 will be subject to 20% capital gains tax. (Read more)

Taxpayers are allowed to choose one of two capital calculation methods:

1. Deductible method: Allows deduction of 80% of proceeds from sales of assets or transfer. For example, you sell land for US$1 million. You are allowed to deduct the principal and other expenses up to 80%. This means you earn only US$200,000 profit, and you have to pay a 20% tax, which is only US$40,000.
2. Deduction method based on actual expenses. (Read more)

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