Capital gains tax implementation delayed until 2024.

The launch of Cambodia’s capital gains tax (CGT) has officially been delayed once more with the General Department of Taxation issuing a notification (no. 4577) on 9 March 2022. This announces that the implementation of the CGT has been postponed until 01 January 2024.

The CGT was originally planned for implementation in July 2020 but was delayed until January 2021, and then delayed again to January 2022. The reason for the new postponement to January 2024 was stated as a move to support the “strategic framework and programs for economic recovery for the years 2021 to 2023”, proposed by the Ministry of Economy and Finance and backed by the Prime Minister, Hun Sen.

The CGT is a  new 20 per cent tax on capital gains as per Prakas 346. It is planned to be imposed on capital gains from real estate and the sale or transfer of leases, shares and bonds issued by private entities, licences, intellectual property and foreign currency.

The 20 per cent flat tax rate might be unique to Cambodia, seeing that a majority of Southeast Asian countries tax capital gains as corporate tax or income tax. While the tax is now not due to be implemented until 2024, if you have any questions about what the implications may be for your business, feel free to contact Acclime’s tax specialists.