Find Job or Recruit Staff: 093 682 682 | 078 868 848 | info@pp-hr.com | Recruitment Service

A Lesson Summary-Property Tax

Property Tax at Cambodia

The purpose of this law is to rationalize the use of land and to benefit the sub-national administrative budget. Property tax shall be imposed on the properties located in the municipality and provinces of the Kingdom of Cambodia. This tax is applied to immovable properties valued in excess of 100,000,000 riels (one hundred million riels).
For the purpose of this tax, the term “Property” is referred to lands, houses, buildings and other constructions that are built on the land.
This tax shall be collected annually at a rate of 0.1% (zero point one percent) on the property.

The tax base is the value of lands, houses, buildings and other constructions that are built on land by deducting 100,000,000 (one hundred million) riel. The value of lands, houses, buildings, and other constructions that are built on the land shall be determined based on the market price by the property evaluation committee which is established by the Prakas of the Minister of Economy and Finance.

Tax Base for Property Tax = ( approved market value of property x 80% – 100,000,000 )

Property Tax = Tax Base for Property Tax x 0.1 %

Example

ABC Company has the following properties with their approved market value by the Prakas of the Minister of Economy and Finance:

1.Land of $25,000 at Khan Dounpenh, Phnom Penh

2.Land and Building of $70,000 at Khan Chamkamon, Phnom Penh

Exchange rate at $1 = 4,ooo KHR

Calculate Property Tax for each place if any.

Solution

1.Land at Khan Dounpenh

Tax Base for Property Tax = ( approved market value of property x 80% – 100,000,000 )=(25,000 x 4,000 x 80%-100,000)=-20,000,000  KHR < 0

So land at Khan Dounpenh is not required to pay Property Tax, but even we do not pay property tax, we still submit property tax form to tax authority.

2.Land and Building of $70,000 at Khan Chamkamon, Phnom Penh 

Tax Base for Property Tax = ( approved market value of property x 80% – 100,000,000 )=(70,000 x 4,000 x 80%-100,000)=124,000,000 KHR > 0

Property Tax = 124,000,000 x 0.1%=124,000 KHR

So land and building at Khan Chamkamon are required to pay Property Tax of 124,000 KHR

 

 


*** Phnom Penh HR is the best recruitment and consulting in Cambodia and Asia , and our services by ACCA | CPA, Diploma in Cambodia Tax, Tax Agent and MBA.
*** Please contact Phnom Penh HR now via 093 682 682 | 078 868 848 | info@pp-hr.com
SHARE