From the khmertimes today

Capital gains tax will apply to all properties and other capital investments such as leasing, stocks as well as foreign currency. It applies to any profits made by transactions within these areas.

Vibol said the idea of a capital gains tax system was first introduced in 2010 and 10 years should have been enough to implement it.

“In some countries, such as France and Australia, the maximum rate of the tax is between 40 and 60 percent, but, for Cambodia, the procedure remains too complicated for both taxpayers and GDT officials,” he said.

According to the directive, the rate of capital gains tax will be fixed at 20 percent of the total value of a property sale.

https://www.khmertimeskh.com/50757704/c ... ct-in-jan/

I'd like to see more detail on that 20% of total value of property sale. Perhaps they mean 20% of the profit from the sale ? I think thats what land holding companies pay now ?

That's either going to drive prices even higher, or make people angry. People will just make fake statements. At least if people knew the money was put to good use... Could put a stop to speculation though, which is good.

Wonder if primary dwellings exempt?

Given the massive amount of "Land Banking" in Cambodia a CGT could significantly help to lower the price of land per sq m outside of cities, by bringing land on to the market at realistic prices prior to introduction of this long overdue tax. Of course tax avoidance is the national pastime of Cambodia so we shall have to wait and see. It's usually been cheaper to pay the tax men than to pay the tax.

OML

Tax avoiding is a national pastime in every country.
Capital gains tax in Australia is only based on 50 percent of the profits and then becomes part of the person's income for that year,so if only a small capital gain and someone with little income may not need to pay any capital tax at all and nowhere near 20%, comparing it to Australia is false.

phuketrichard wrote: ↑Sat Aug 29, 2020 2:30 pm

Bitte_Kein_Lexus wrote: ↑Fri Aug 28, 2020 10:04 am That's either going to drive prices even higher, or make people angry. People will just make fake statements. At least if people knew the money was put to good use... Could put a stop to speculation though, which is good.

I just brought a piece of land (medical sale) in Kep, the owner wanted us to agree to mark the purchase price down 35%

Seems it is a very common occurrence.

And if you ever sell it then will do the same?

Same as when you buy a car in Australia less stamp duty if you reduce the official sales price.

October 22, 2020
Capital gains tax to be delayed until January 2022
The government is to delay implementing capital gains tax until January 2022, according to a statement from the General Department of Taxation.

“The GDT of the Ministry of Economy and Finance is to inform the taxpayers and public that according to the letter of the Ministry of Economy and Finance it proposed the delay of the implementation of capital gains tax, which Prime Minister HE approved on October 9, 2020,” the statement read.

The statement noted the government has decided to delay the date of the implementation of capital gains tax for one year until the end of 2021 in order to give enough time for taxpayers and the public to comprehensively understand the regulations regarding it as well as the preparedness to implement it smoothly and effectively.
https://www.khmertimeskh.com/50775996/c ... uary-2022/

Funny this news now. I was thinking about it this morning myself wondering how they would implement it. Obviously they havent a clue. Most transactions at the Sangkat level are not recorded or saved on any system as far as I have seen. Any bill of sale is between the two parties involved and the Sangkat is only involved in changing the title. The purchase price is not recorded on the title. Any hard titled land registered with the land registry of course is easy to track.
Easy workaround for those of us with soft titles.