Original Publication Date: Sunday, September 13, 2020
Source/Copyright: General Department of Taxation (GDT) Cambodia
Property Tax Guide
A. What is Property Tax?
Property Tax is an annual tax collected on immovable properties located within the capital and provincial administrations of the Kingdom of Cambodia. It allows for a standard tax relief deduction of 100,000,000 Riels (one hundred million Riels) from the calculated property value.
B. Key Definitions
- Immovable Property (Real Estate): Refers to land without buildings and/or land with buildings, houses, other residential structures, apartments, or any other infrastructure.
- Taxpayer: Refers to any physical person (individual) or legal entity (company/organization) who is the owner, possessor, or final beneficiary of the immovable property.
C. Property Tax Exemptions
Property tax is exempted for the following cases:
- Immovable property with a total assessed value less than or equal to 100,000,000 Riels.
- Immovable property categorized as agricultural land. This includes land currently being actively cultivated for agriculture, such as rice fields, plantations, agro-industrial crop land, livestock farms, aquaculture sites, and salt fields.
- Immovable property owned by the Royal Government or government institutions, excluding properties recorded as assets of public enterprises or joint ventures.
- Land owned by the Royal Government or government institutions leased to private entities for commercial operations or construction. In this case, the land itself is exempt, but the private structures/buildings built on it are subject to tax.
- Immovable property owned by individuals or organizations that is organized and operated purely for religious and charitable purposes, provided no part of the property or its income is used for private interests.
- Immovable property belonging to foreign diplomatic missions, consulates, international organizations, and technical cooperation agencies of foreign governments officially recognized by the Royal Government of Cambodia.
- Infrastructure properties, including roads, bridges, clean water production systems, electricity production facilities, waste disposal sites, airports, ports, and railway stations—including buildings and offices directly serving these infrastructure activities.
- Immovable property heavily damaged by force majeure (unforeseen and unavoidable events) such as natural disasters, war, riots, fires, or accidental catastrophes.
- Houses, buildings, and structures that are currently under construction and are less than 80% complete and not yet put into use. However, the underlying land itself remains subject to property tax.
- Immovable property located within Special Economic Zones (SEZs) that directly serves manufacturing and service industry activities.
D. Tax Rate, Tax Base, and Tax Calculation
- Tax Rate: Collected annually at a rate of 0.1% of the taxable base.
- Tax Base: The tax base is equal to 80% of the total market value of the immovable property (including both land and building values—adjusted based on the age, type of construction, and floor levels as determined by the Property Valuation Committee), minus the tax relief deduction of 100,000,000 Riels.
Tax Base = (Total Property Value × 80%) – 100,000,000 Riels
Tax Amount Due = Tax Base × 0.1%
Calculation Example:
A property is located along Preah Monivong Boulevard with a land size of 4m x 20m. It has a 2-story flat (E0, E1, E2) measuring 4m x 16m. The building is a concrete structure built in 2015. The market value evaluated by the Property Valuation Committee per square meter is calculated as follows:
- Land Value: 80 sqm × $1,500 = $120,000
- Ground Floor Value (E0): 64 sqm × $250 = $16,000
- 1st Floor Value (E1): 64 sqm × $200 = $12,800
- 2nd Floor Value (E2): 64 sqm × $150 = $9,600
- Total Property Value: $158,400
- 80% Assessed Value (Converted to Riels at 4,000៛/$): $158,400 × 80% × 4,000៛ = 506,880,000 Riels
- Taxable Base: 506,880,000៛ – 100,000,000៛ = 406,880,000 Riels
- Annual Tax Owed: 406,880,000៛ × 0.1% = 406,880 Riels
E. Obligations and Tax Declaration Procedures
- Taxpayers are obligated to register their immovable property if its total value exceeds 100,000,000 Riels. Registration can be done at the GDT service counters or at the provincial/khan tax branch office where the property is located.
- Taxpayers must submit their tax return and pay the property tax to the tax administration by September 30 of each year at the latest.
- Registered taxpayers can make their annual property tax payments through GDT partner commercial banks or online via the “GDT Taxpayer App” available on the App Store and Google Play Store.
Required Documents for Property Registration or Information Updates:
When registering or updating property information, the taxpayer must fill out the Form PT 01 and attach copies of the following documents:
- Taxpayer Identification Documents:
- For Individuals: Cambodian National ID card, birth certificate, or passport (for foreigners).
- For Legal Entities: Tax Registration Certificate (Patent Tax/VAT Certificate).
- Family book, residency book, or a residential certificate issued by local authorities (if available).
- Certificate of Property Ownership (Title Deed) or land possession documents issued by the Cadastral Administration or certified by Commune/Sangkat authorities or higher.
- Photos of the property and its exact geographic coordinates (GPS coordinates).
- Other relevant documents such as construction permits, letters opening/closing the construction site, or other official letters from competent authorities (in case of newly built or altered constructions).
When must property information be updated?
Taxpayers must report updates to the tax administration using official forms in the following events:
- Changes to the property structure: Land is developed to construct houses/buildings, or existing structures are expanded, reduced, or demolished.
- Ownership changes: Transfer of ownership, change of possessor, or final beneficiary.
- Land modifications: Splitting or merging plots of land.
