3 September 2020
Cambodia's Government News Agency has issued a release announcing that the General Department of Taxation (GDT) will begin the collection of capital gains tax with effect from 1 January 2021.
The capital gains tax will be levied at a flat rate of 20% on income from the sale or transfer of taxable capital, less allowed deductions. The tax applies for resident individuals and for non-resident individuals and legal entities. Taxable capital includes:
With respect to deductions, taxpayers are generally required to use the actual expense method to calculate the capital gain. With respect to immovable property, however, taxpayers may opt to use the actual expenses method or a determination-based deduction equal to 80% of the income received without needing to provide supporting documentation for expenses. Where a capital gain subject to tax is made, a prescribed return is required to be filed within three months, with payment.
Click the following link for Prakas No. 346 (Khmer-language) on the capital gains tax, issued by the GDT.
Note - Capital gains of resident legal entities remain subject to corporate income tax.
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