PM: To Spur Economic Activity, Unused Land with Size More Than 5 Hectares is Subject to Tax

• 13 November 2023
• Property Focus
• 2109 Views

Prime Minister Samdech Hun Manet revealed a groundbreaking tax reform concerning unused land in Cambodia. The prime focus of this reform is to impose taxes on idle lands exceeding 5 hectares, while lands below this threshold will enjoy exemption. The pivotal announcement was made at the 19th “Royal Government-Private Sector” forum on 13 November 2023.

PM Samdech Hun Manet emphasised that the underlying objective of taxing unused land is to discourage large-scale land acquisition without subsequent economic activities.

He explained that, “The principle of unused land taxation is to make sure that the land is not bought too big in size because we want lands bought to engage in business activities, generate income, instead of being acquired and left dormant.”

This transformative policy is set to be enforced from 2025, affording individuals and entities with substantial land holdings ample time to reconsider and redirect their land use towards productive business activities.

The PM outlined specific exemptions applicable to land exceeding 5 hectares, including cultivating land recognised by the land appraisal authority, land serving economic activities of registered natural persons and legal entities subject to land tax, and land covered by economic land lease agreements, among others.

This progressive initiative anticipates a paradigm shift where land assets are actively contributing to Cambodia’s economic vibrancy.

• Laws and Regulation
• land development and policy