The Property Law Starts to Implement in Cambodia

Phnom Penh, 10 June 2011

By Sok Lak

The Royal Government of Cambodia announced the implementation of property tax on the properties that worth more than 100 million riel (US$25,000) on 09 May. The first step implementation is on eight district of Phnom Penh and 26 cities of 23 provinces with the tax rate of 0.1%.

H.E Keat Chhon, Minister of Ministry of Economy and Finance, said that property tax show the culture of sharing between rich and poor people. This tax is focus mainly on wealthy families which will not affect the living of the poor, so it help reduce inequality gap and promote national economic development.

He added that property tax is neither the tax on agriculture land nor tax on property which price less than 100 million riel, it is the tax on property that worth more than 100 million riel and the tax rate of it is 0.1%.

The step of implementation of property will levy on 8 district of Phnom Penh and 26 cities of 23 provinces with the tax rate of 0.1%, he stressed. “The successful of levy tax on property will be a major role in development which is the poverty reduction and economic development foundation.”

All of the tax revenue will many by the local government authority as the use of local economic development and the fund for construction of hospitals, schools, roads, and help people to reduce poverty.

Long Seng, Director of Law, Litigation and Statistics Department  in General Department of Taxation Cambodia, said that agriculture land, government property, international organization, religious purpose property and so on

                                                 

He noted that the amount of property tax owed is determined by multiplying the fair market value of the property by the tax rate.

According to announcement, all property owners have obligation to pay tax before 30 September of each year.

Cheng Kheng, Managing Director of CPL Cambodia Properties Limited, says after seminar property is a new concept in Cambodia, so it often may be affected especially on some medium standard family which have high price property in long time ago. “As I am Cambodian citizens, it is my obligation to pay tax on property to the government.” He supports government policy on property tax, because our neighbor countries already have that kind of tax, also our country need to develop through the tax.