Logo of Phnom Penh Post newspaper Phnom Penh Post - Gov’t sets deadline for property tax payment

Gov’t sets deadline for property tax payment

Content image - Phnom Penh Post
The government has set September 30 as the deadline for property owners to pay their 2020 tax. Hong Menea

Gov’t sets deadline for property tax payment

The government has set September 30 as the deadline for property owners to pay their 2020 tax as a large number of property owners have not yet obliged.

A General Department of Taxation (GDT) directive noted that many property owners have not fulfilled their obligation to pay property tax for this year.

A GDT official who asked not to be named told The Post on Wednesday that presently, GDT officials are going directly to the property owners to inform them about the obligation and demand that they re-evaluate the value of any property that they have upgraded.

The official said: “We have our officers go down directly to all districts in Phnom Penh and re-assess property values for updates and inform owners they are obliged to pay tax.

“The tax is actually not all that much, but we want to build a culture of paying taxes.”

The official said tax officers in some key provinces will also provide recommendations to property owners to avoid any fines in the future if they want to sell.

Anthony Galliano, the CEO of financial services firm Cambodia Investment Management Co Ltd, told The Post that Cambodia’s property taxes are unrealistically low and are misaligned with other countries in the region which benefit from practical tax rates.

He said: “The boom in the condo, borey [gated community], and commercial real estate markets over the last five years should have translated into an upsurge in property taxes, contributing to the national coffers.

“Instead, impractically low property tax revenues account for just 0.1 per cent of the country’s GDP [gross domestic product].”

He said the argument from the property sector – primarily agents and developers – is to keep taxes low and encourage buying in the real estate market.

Taxes can be increased by raising the exemption tier from the present $25,000 to $50,000 or $75,000, he said. The tax can be considerably increased from the current rate of 0.1 per cent to a more realistic level.

“This will safeguard low to middle-class property owners and apply more appropriate tax rates to wealthier owners,” said Galliano.

MOST VIEWED

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia resumes issuance of tourist visas

    The Ministry of Foreign Affairs and International Cooperation has announced the resumption of its tourist visa and visa exemption programme after a long hiatus due to the Covid-19 pandemic. In a letter dated October 20 and addressed to foreign embassies and consulates, foreign minister Prak Sokhonn

  • S’ville set to turn into ‘second Shenzhen’

    The Ministry of Economy and Finance has awarded a master plan consultancy contract to top Chinese institute for the development and transformation of Preah Sihanouk province into a “Model Multi-Purpose Special Economic Zone”, Southeast Asia’s next logistics and resort hub and innovation centre. The