Capital gain tax implementation postponed until the end of 2024.

Before 2020, Cambodia did not have a separate Capital Gains Tax (CGT). All gains derived by a tax resident were subject to the prevailing 20% Tax on Income, regardless of the taxpayer’s residence. However, there was no mechanism in place to collect CGT from non-residents or individuals not classified as real regime taxpayers, given the absence of personal tax returns in Cambodia.

Therefore, on 01 April 2020, the Ministry of Economy and Finance issued Prakas no. 356, effective from 01 July 2020 onwards, to collect CGT from these individuals. However, due to the COVID-19 pandemic and at the request of the real estate sector, the implementation of this CGT was delayed to 01 January 2024.

Currently, the economy faces challenges, particularly in the real estate sector. Implementing CGT from 01 January 2024 could exacerbate the slowdown in the real estate sector. Therefore, the Royal Government of Cambodia has decided to delay the CGT implementation until the end of 2024. This postponement covers six transaction types: immovable property, finance leases, investment assets, goodwill, intellectual property, and foreign currency and was unveiled at the 19th Government-Private Sector Forum on 13 November 2023.

For expert support and further information about accounting and tax requirements in Cambodia, contact our team to ensure compliance in the market.