The government has decided to postpone the implementation of the capital gains tax from January 1, 2021 to January 1, 2022, the Ministry of Economy and Finance’s General Department of Taxation (GDT) said on Thursday.
This, it said, will provide taxpayers more time to gain a better grasp of how capital gains tax works and what it implies for investments.
The decision was made based on a local investment advisory firm’s letter submitted via the GDT to the ministry and endorsed by Prime Minister Hun Sen on October 9.
In the letter, the Housing Development Association of Cambodia (HDAC) asked the government to postpone collection of the new tax until the current Covid-19 situation eases, citing the real estate sector’s continued struggle under the weight of the ongoing pandemic.
Capital gains tax will be levied on taxpayers’ gains from the sale, transfer or establishment of property rights, or the registration of ownership or possession rights, according to Prakas No 346, which was signed by minister Aun Pornmoniroth on April 1.
Individuals will be required to pay a 20 per cent capital gains tax rate on calculated profits from the sale of certain assets including land, buildings, stocks, bonds, licences, patents and currencies.
HDAC secretary-general Huy Vanna told The Post late last month that the tax will only add to the burden on the real estate industry.
“We have requested the Ministry of Economy [and Finance] to postpone the collection of capital gains tax payments until a more suitable time or when the Covid-19 and economic situations improve. Today’s real estate market is in the doldrums,” he said.
