Cambodia Tax Alert: Capital Gains Tax Implementation Further Delayed 

April, 2023 - Ramandeep Singh Bhamra

In a press release issued on the 12 of April 2023 the Economic and Financial Policy Committee (the Committee) of the Royal Government of Cambodia provided the following updates with respect to the support of Borey Real Estate Developers in Cambodia.

(1)  Continuation of the Postponement of Tax Installments

Borey Real Estate Developers who pay taxes based on the tax package system, determined by projected sales, will continue to enjoy a postponement of the installments under the tax package system until the end of 2024 provided they have been operating housing development projects with real estate licenses granted by the Real Estate Business and Pawnshop Regulator.  

Those developers that do not currently have a license must register with the Regulator before the end of 2023 to be eligible for the delay in the payment of installments under the tax package system until the end of 2024.

(2)  Tax Package Period Extension – Borey Real Estate Developers

The tax package payment period will be extended from 12 months to 18 months for Borey Real Estate Developers who pay tax of less than USD1 million and from 24 months to 36 months for Borey Real Estate Developers who pay tax of more than USD1 million.

(3)  New Borey Projects

For new or contemplated Borey projects the developers must pay tax in accordance with the procedures in force (self-assessment regime) and must hold proper accounting records.

(4)  Capital Gains Tax

The implementation of capital gains tax is delayed until the end of 2024 for the real estate sector in Cambodia.

(5)  Stamp Duty

The current stamp duty exemption on the transfer of ownership of buildings within a Borey that have a value of less then or equal USD70,000 will be extended until the end of 2024.

(6)  Financial Institutions

The Committee encourages and requests Banks and Financial Institutions to restructure loans that are provided to Borey Real Estate Developers according to the ability of those institutions in a voluntary manner and based on mutual agreement between the institutions and the Borey Developers in accordance with Prakas No. ?7.017.344, dated December 1, 2017, on Credit Risk Classification and Impairment Provision.

(7)  Exemption of Penalties

Exempt various penalties for Borey Real Estate Developers, but developers need to fulfill their obligations in accordance with Prakas No. 089 MEF. Prak on the “Management of Real Estate Development Business”.

(8)  Financial Statements

Postponement of the implementation until the end of 2023 on Prakas No. 563 MEF., dated July 10, 2020, on “Obligations to submit financial statements for independent audit” issued by the Ministry of Economy and Finance.


The Committee outlined further in their press release that although economic activities in Cambodia have mostly resumed post-COVID the increased global and financial uncertainty is of concern for national economic growth. In particular due to  the risk of a slower-than-expected recovery of the global economy, rising tensions between Russia and Ukraine, longer-than-expected tightening of monetary policy in developing countries, continued disruption of global supply chains and increased tension of the global financial sector.

Due to these factors the Committee has decided to maintain the stability of the construction and real estate sector in Cambodia, which is considered a priority sector to support the overall economic growth, in particular to maintain sustainable employment for workers, as well as to improve the affordability of low and average-income people to buy homes.

We look forward to receiving further clarity from the Ministry of Economy and Finance and the General Department of Taxation on the application of the measures outlined above – in particular the further delay of the Capital Gains Tax Prakas 346 and to whom exactly the delay will apply.

Tax services required to be undertaken by a licensed tax agent in Cambodia are provided by Mekong Tax Services Co., Ltd, a member of DFDL and licensed as a Cambodian tax agent under license number – TA201701018.



Clint O’Connell
Partner, Cambodia Deputy Managing Director & Head of Cambodia Tax Practice
[email protected]

Vajiravann Chamnan
Tax Director
[email protected]


Davy Kong
Co-Head of Real Estate and Construction Practice Group
[email protected]

Leung Seng
Co-Head of Real Estate and Construction Practice Group
[email protected]


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