A capital gains tax will be effective 1 January 2021. The rate of the tax will be 20% of the amount of gain realized (subject to certain deductions), and the tax itself must be reported and paid within three months after the date of the transaction giving rise to the capital gains.
The capital gains tax was initially published in Prakas No 346 (1 April 2020), and this was followed by implementing guidance from the General Department of Taxation.
In general, a transaction that will be subject to the capital gains tax refers to immovable property, finance leases, investment assets, goodwill, intellectual property, and foreign currency. The capital gains tax will apply to all taxpayers (both residents who are individuals and non-residents including legal entities and nonresident individuals) that realize capital gains.
Exemptions are available with regard to gains realized on transfers of assets of government institutions; assets of foreign embassies or consulates, international organizations or technical cooperation agencies of other governments; the principal residence that a taxpayer has owned for at least five years; immovable property sales or transfers between and within a “close relative circle,” excluding transfers of immovable property between siblings and in-laws; and assets sold or transferred for the public interest in accordance with the Law on Expropriation.
Read a September 2020 report [PDF 382 KB] prepared by the KPMG member firm in Cambodia
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