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Cambodia: Capital Gains Tax coming into force delayed till 2024
The implementation of Capital Gains Tax has been delayed for another two years to reduce the pandemic’s impact on the real estate market as the government sets a range of stimulus programs for economic recovery.
The Ministry of Economy and Finance stated in an announcement dated March 9 that the ministry has submitted a request to Prime Minister Hun Sen to extend the capital gains tax implementation.
Mr Hun Sen agreed to the request, the ministry said.
The capital gains tax implementation is set from January 1, 2024, read the statement.
“The Royal Government has decided to delay the dateline of the capital gains tax implementation for two years more, setting January 1, 2024, for the tax implementation aimed to implement Strategic Framework and Programmes for Economic Recovery in the Context of Living with Covid-19 in a New Normal 2021-2023,” the ministry said.
The capital gains tax was previously set for implementation on January 1, 2021.
Due to COVID-19, the law was delayed to January 2022 to reduce the pandemic’s impact on the real estate market.
The Capital Gains Tax in Cambodia is not exactly new, as businesses in the Kingdom have always paid capital gains. The material difference now is that it applies to individuals, especially those looking to sell immovable property – real estate.
Capital Gains Tax covers capital gained from selling: Immovable Properties, Leases, Investment/Financial Assets, Good (Licenses & Branding), Intellectual Property, and Foreign Currency.
Capital Gains Tax in Cambodia is a flat 20 percent rate on gains made after selling a capital asset. At face value, that is a significant portion of sales proceeds. Still, there are two methods taxpayers can use that allow for a bit more consideration to their expenses — Actual Expense Deduction Method and Determination Based Deduction Method.
Source: https://www.khmertimeskh.com/501039487/capital-gains-tax-coming-into-force-delayed-till-2024/