Major adjustments to Cambodia's taxation policy postpone the levy of capital gains tax for one year

　　China News Agency, Phnom Penh, October 22 (Reporter Ouyang Kaiyu) The State Administration of Taxation of Cambodia announced on the 22nd a major adjustment to the taxation policy to postpone the collection of capital gains tax for one year.

　　The Cambodian State Administration of Taxation said that the effective date of the taxation of capital gains will be extended from January 1, 2021 to January 1, 2022.

Earlier, Cambodian officials announced in August that they would start to levy capital gains tax on January 1, 2021, and 20% tax on capital gains from the sale of real estate, including real estate.

　　After the announcement of the above policy, it has aroused heated discussions in various circles in Cambodia.

According to the policy, after the implementation of capital gains tax, tax residents' asset sales activities, including real estate, asset leasing, asset investment, corporate trademarks, intellectual property rights and foreign currencies, will be subject to capital gains tax; only government and foreign embassy assets , Or a resident residence owned by a tax resident (only one, and the holding period must not be less than 5 years), will be exempt from capital gains tax.

　　Some analysts believe that due to the impact of the new crown pneumonia epidemic on major economic sectors, the government's tax revenue in the second half of the year has fallen for two consecutive months (August and September), and the growth of profit tax revenue next year is not optimistic.

Therefore, levying capital gains tax is a new channel for the government to open up tax sources and ensure the stability of fiscal revenue.

　　Some media also quoted the Real Estate Developers Association’s view that when the country and various economic sectors are hit hard by the new crown pneumonia epidemic, if taxes on real estate transaction profits start next year, it will inevitably hit the real estate market that is at a “low ebb”.

　　The State Administration of Taxation of Cambodia stated that the government's decision to postpone the implementation of capital gains tax is to allow the public to have more time to learn about taxation and to make full preparations for fulfilling tax obligations to ensure smooth and effective tax collection and payment.

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