The new 20% capital gain tax on capital asset sales takes effect September 2025, with specific rules and exemptions for residents and non-residents.
The Ministry of Economy and Finance of Cambodia issued Prakas No. 496 on 18 July 2025, introducing a 20% Capital Gains Tax (CGT) on profits from the sale or transfer of capital assets.
The tax applies to resident individuals on both domestic and overseas assets, while non-resident individuals and legal entities are taxed only on assets located in Cambodia. Capital assets include immovable property, leases, investment assets, goodwill, intellectual property, and foreign currency.
The Prakas outlines calculation methods, including a fixed 80% cost deduction or an actual cost method for immovable property, and only actual cost for other assets. Specific exemptions are allowed, such as the sale of a primary residence held for at least five years, agricultural land under cultivation, and property transfers among close family members. Withholding obligations are placed on enterprises and settlement agents in relevant transactions.
Taxpayers must file and pay CGT within three months of realising capital gains. Failure to comply may render the asset transfer legally incomplete.
The CGT regime will take effect from 1 September 2025 for most capital assets and from 1 January 2026 for immovable property.
