PHNOM PENH: Starting on January 1, 2024, the state will impose a 20% tax on capital gains for those selling real estate. The move was meant to take place at the start of 2020, but was delayed by the Covid-19 crisis.
Director-General of the Department of Taxation, Kong Vibol, made the special live announcement on September 15, emphasizing that the tax would only apply to those selling real estate which had appreciated in value and would not affect those who sell property at a loss.
He said, "We [the state] will only take 20% after an 80% deduction.” He then gave an example of selling a $1 million property, saying that the seller could deduct $800,000. The 20% would then be taken from the remaining $200,000, leaving the seller to pay $40,000 on a $1 million property, which he called “gentle and very convenient for the real estate sector and our citizens."
Kong Vibol said that the implementation of the capital gains tax will not affect the growth of the real estate sector in Cambodia; rather, it will raise tax revenue and strengthen compliance and equality in tax payment.