Property Taxes in Cambodia

Nonresidents are generally subject to Cambodian taxation on Cambodian-source income. Cambodia does not impose a conventional comprehensive personal income tax in the same form as many other countries; instead, different categories of income are subject to specific taxes and withholding mechanisms.

Rental Income Tax

Rental or leasing income and other income connected with the use of property paid to a nonresident is generally subject to 14% withholding tax in Cambodia.

The withholding is generally imposed on the gross amount paid to the nonresident and is withheld by the Cambodian resident payer where the applicable withholding rules apply. An applicable double-tax treaty may reduce or otherwise affect the tax treatment.

Capital Gains Tax

Cambodia has introduced a 20% capital gains tax regime covering specified capital assets, including immovable property. The taxable capital gain is generally determined by deducting allowable expenses from the proceeds received on the sale or transfer.

For immovable property, the applicable rules may permit the taxpayer to use a prescribed deemed-expense method or actual qualifying expenses supported by appropriate documentation.

However, implementation of capital gains tax on certain property transactions has been subject to postponements and transitional measures. The applicable treatment should therefore be determined according to the type of property, transaction and effective implementation date.

Corporate Income Tax

The standard Cambodian corporate income tax rate for an ordinary company is generally 20% of taxable profit.

Taxable profit is generally determined after deducting qualifying business expenses incurred in generating taxable income.

Special tax rates or regimes may apply to certain industries and qualifying taxpayers, but it is preferable not to describe the ordinary corporate income tax system as simply ranging from 0% to 20% according to company size.

Property Buying Costs and Taxes in Cambodia

Property Holding Tax

Cambodia imposes an annual Tax on Immovable Property at a rate of 0.1%.

The taxable base is generally calculated as 80% of the property's assessed value less KHR 100 million. Accordingly, the tax is not simply 0.1% of the property's entire market value.

Properties with a taxable value at or below the applicable KHR 100 million threshold are generally outside the tax, while specified categories of property, including qualifying agricultural land, may be exempt.

The tax applies to qualifying land, houses, buildings and other immovable property and is generally payable by the owner, possessor or ultimate beneficiary of the property.