Capital gain tax on immovable property deferred to end of 2026 (Instruction No. 041 dated 02 January 2026).

The Royal Government of Cambodia has postponed the implementation of capital gains tax (CGT) on immovable property until 31 December 2026, according to Instruction No. 041 issued by the General Department of Taxation on 2 January 2026.

Before 2020, non-residents and individuals not classified as real regime taxpayers were not subject to CGT in Cambodia. However, on 1 April 2020, the Ministry of Economy and Finance (MOEF) issued Prakas No. 356, effective from 1 July 2020, to impose CGT on these individuals.

The tax covers six transaction types including immovable property, finance leases, investment assets, goodwill, intellectual property and foreign currency.

However, implementation was initially deferred due to the COVID-19 pandemic and subsequent economic challenges. The deadline was most recently extended to 31 December 2025 under Prakas No. 496 (dated 18 July 2024) and Instruction No. 34236 (dated 30 October 2025).

With Cambodia’s GDP growth at approximately 4.8% in 2025, the real estate sector has yet to fully recover from the economic slowdown. In response, the Royal Government of Cambodia has granted an additional one-year extension specifically for CGT on Immovable Property.

Notably, CGT will remain applicable to the other five transaction categories from 1 January 2026: finance leases, investment assets, goodwill, intellectual property and foreign currency transactions.

For further information or to discuss how these regulations might impact your business, please contact us.