canucklhead wrote: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.

True, but they already have the normal tax you need to pay based on size/location and so on. So that's one tax, but as you say, there are easy ways to reduce the CGT. Land we bought recently in the city was out down as like $12k, lol. There are a few ways they can implement it, but I reckon even the top dogs haven't squared up their assets yet, thus the delay.

Tax on land isn’t what you paid for it or what it’s worth now but the cadastral price per sq. always much lower than current or even past prices.

whatwat wrote:Tax on land isn’t what you paid for it or what it’s worth now but the cadastral price per sq. always much lower than current or even past prices.

I know, I'm just pointing out the different kinds. However, people have been putting artificially lower selling prices for a while now (as in a few years) in anticipation of this.

April 16, 2022
Cambodia delays Capital Gains Tax to 2024: Impact for businesses and individuals
Cambodia has officially delayed its planned implementation of capital gains tax to January 1, 2024, through Notification 4577 issued by the General Department of Taxation (GDT).

The decision is in support of the government’s new vision to foster post-pandemic economic growth through the ‘Strategic Framework and Programs for Economic Recovery in the Context of Living with the COVID-19 in a New Normal 2021-2023’. The framework lays out the strategies and roadmaps for each sector of the economy by focusing on three pillars: 1) economic recovery, 2) reforms, and 3) building resilience.

Why was the tax postponed?
The capital gains tax was postponed so business sectors can continue to recover, especially those outside of textile and garments, and tourism sectors.

Cambodia’s economy shrank 3.1 percent in 2020 and factory closures and disruptions in the country’s textile and garment sectors resulted in exports decreasing by 6.5 percent or $2.4 billion year-on-year. These sectors are the backbone of Cambodia’s economy, contributing to 17 percent of total exports as well as employing close to 1 million workers. It was a harsh year for the tourism sector too, Cambodia’s second-largest contributor to GDP, as international arrivals plunged by 91 percent year on year.

The economy did rebound in 2021 and saw growth of three percent due to a slew of government incentives aimed at protecting businesses and people’s incomes, a successful national vaccination campaign, and timely lockdowns. According to the Asian Development Outlook (ADO) 2022 report, Cambodia’s economy is forecasted to grow 5.3 percent in 2022 and 6.5 percent in 2023, mainly due to strong merchandise exports.

Prakas 346
The capital gains tax was originally planned to be implemented in July 2020 through the issuance of Prakas 346, whereby capital gains received by residents and non-resident taxpayers would be taxed at a fixed rate of 20 percent. This was delayed until January 2021 and then delayed again to January 2022, before the government finally decided on a 2024 deadline. Prakas 346 defined ‘capital’ as immovable property, intellectual property, foreign currencies, leases, goodwill, and investment assets.

Although this is not a new tax, the government has expanded its tax base to include individuals buying and selling properties.

Under the Prakas, the tax is levied based on the difference between the sale price of the asset and the initial cost of the asset when it was first acquired. However, the GDT reserves the right to determine the selling price of the asset where it deems the indicated price is lower than the market value.

Further, capital assets that are exempted from capital gains tax are as follows:

Assets of state institutions, foreign embassies, and international organizations;

Immovable properties that were sold or transferred for the public interest under the Law on Expropriation;

The transfer of immovable properties between relatives as stated in the regulation on stamp duty tax; and

The primary residence for a taxpayer for at least five years prior to the sale or transfer.
Full article: https://www.khmertimeskh.com/501058509/ ... dividuals/