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