Logo of Phnom Penh Post newspaper Phnom Penh Post - Capital gains tax postponed until January 1, 2022

Capital gains tax postponed until January 1, 2022

Content image - Phnom Penh Post
The Ministry of Economy and Finance’s General Department of Taxation (GDT). Heng Chivoan

Capital gains tax postponed until January 1, 2022

The government has decided to postpone the implementation of the capital gains tax from January 1, 2021 to January 1, 2022, the Ministry of Economy and Finance’s General Department of Taxation (GDT) said on Thursday.

This, it said, will provide taxpayers more time to gain a better grasp of how capital gains tax works and what it implies for investments.

The decision was made based on a local investment advisory firm’s letter submitted via the GDT to the ministry and endorsed by Prime Minister Hun Sen on October 9.

In the letter, the Housing Development Association of Cambodia (HDAC) asked the government to postpone collection of the new tax until the current Covid-19 situation eases, citing the real estate sector’s continued struggle under the weight of the ongoing pandemic.

Capital gains tax will be levied on taxpayers’ gains from the sale, transfer or establishment of property rights, or the registration of ownership or possession rights, according to Prakas No 346, which was signed by minister Aun Pornmoniroth on April 1.

Individuals will be required to pay a 20 per cent capital gains tax rate on calculated profits from the sale of certain assets including land, buildings, stocks, bonds, licences, patents and currencies.

HDAC secretary-general Huy Vanna told The Post late last month that the tax will only add to the burden on the real estate industry.

“We have requested the Ministry of Economy [and Finance] to postpone the collection of capital gains tax payments until a more suitable time or when the Covid-19 and economic situations improve. Today’s real estate market is in the doldrums,” he said.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro

  • Nestle’s debut may spur dairy market

    Leading confectionery manufacturer Nestle plans to invest in Cambodia by setting up an operation in the near future, a move majorly hailed by local dairy farmers as a means of boosting the fresh milk market in the Kingdom. During a visit by a delegation led

  • ACLEDA, WU to enable global money transfers

    Cambodia's largest commercial bank by total assets ACLEDA Bank Plc and global money transfer firm Western Union (WU) have partnered to offer customers cross-border money transfers to 200 countries via “ACLEDA mobile” app. In Channy, president and group managing director of ACLEDA, said the June 22 agreement