On October 9, 2024, the Ministry of Economy and Finance issued Notification No. 014 on the Extension and Addition of Tax Incentives for Real Estate Sector (“Notification No. 14”), introducing several tax incentives for property owners and housing developers to reduce their tax burden. These measures are based on Notification No. 001 dated January 4, 2024 and the Royal Government’s Special Statement on its achievements dated August 22, 2024, with approval from Samdach Moha Borvor Thipadei Prime Minister on September 26, 2024. The updated incentives will be effective through the end of 2025.
The announcement includes the following key tax incentives for the real estate sector:
| Tax Incentive | Details | Conditions | Validity |
| Stamp Tax on Transfer of Ownership or Possession of Real Estate
|
No stamp tax for housing transfers in Borey developments valued at $70,000 or less.
|
Must provide accurate sale contracts based on market value | Until the end of 2025 |
| $70,000 deduction from the tax base for properties the value over $70,000 in registered Borey housing development projects.
|
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| Capital Gains Tax | Capital gains tax on real estate owned by individuals are postponed.
|
None | Until the end of 2025 |
| Capital gains tax applies to transfer leases, investment assets, goodwill, intellectual property, and foreign currency will apply from 2025.
|
None | From 2025 onwards | |
| Property Tax | Agricultural land used for cultivation is exempt from property tax | No extra permits needed | Ongoing, based on usage |
| Residential land being used for agricultural purposes may qualify for exemption.
|
Requires certification from the local authority. | ||
| No reassessment for incorrect filings before 2025; penalties are waived for unregistered properties until mid-2025
|
None | Until June-2025 | |
| Unused Land Tax Suspension | Unused land tax is postponed | None | Until the end of 2024 |
| From 2025, exemptions will apply for land used in agriculture, economic activities, etc.
|
Land must meet exemption criteria set out for 2025. | From 2025 onwards |
The tax exemptions, reliefs, and suspensions in Notification No. 014 do not apply retroactively to taxes or penalties already paid. Property owners and developers should take note of these updates, which provide significant tax reliefs through the end of 2025.
This tax update is brought to you by Davies SM Attorneys-at-law. For more information and guidance, contact our partners and explore the Library of Laws section on Aquarii’s online platform to stay informed on business and investment laws in Cambodia.
