Tax on Property Rental-Summary
- Tax on property rental is applied when the lessor is an individual.
- Tax on property rental is set by the rental received as the following:
- Buildings such as houses, factories, warehouses, offices, and so forth
- Manual tools are equipped with industrial institutions
- Industrial and commercial installed fittings established in place, large buildings loaded with liquids and miscellaneous products such as fuel, pitch, grains
- Floating houses, ships used as accommodations or miscellaneous business services
- Free land (land without buildings) is included with the areas of stone, mine and coal extraction, lakes and salt pan field
- This tax is collected from proprietors or assignees
- The tax rate on the property rental is equalized 10% of the gross rental. This gross rental shall be written in a contract or an agreement with lessees.
Example
Mr.A ( he is individual, not company) got gross rental fee per month from the following properties:
-House of $2,000
-Manual tools are equipped with industrial institutions of $1,000
Calculate tax on property rental .
Solution
Tax Base on Property Rental = $2,000 + $1,000=$3,000
Tax on Property Rental = $3,000 x 10%=$300
How to Register
If gross rental income is above 500,000 KHR, owner of property has obligation to register to pay tax on property.
How to declare tax
