Service

Tax on Unused Land

General Department of Taxation

Tuesday, March 31, 2020
Source/Copyright: General Department of Taxation (GDT) Cambodia

Tax on Unused Land

A. What is the Tax on Unused Land?

Tax on Unused Land is an annual tax levied on land with or without buildings that is not utilized, located outside the geographical areas subject to Property Tax in the Kingdom of Cambodia.

B. Key Definitions

  • Owner: Refers to any person who has been issued official documents recognizing their rights by the cadastral administration or local authorities from the commune/sangkat level up, to use the land in any area permanently or temporarily.
  • Unused Land: Refers to land with or without buildings that is not utilized.

C. Tax Exemptions

Tax on Unused Land is exempted as follows:

  • a. Unused land with an area less than or equal to 5 (five) hectares per location.
  • b. Unused land with an area exceeding 5 (five) hectares is exempted from Tax on Unused Land under any of the following conditions:
    • Agricultural land currently being cultivated with certification from the Committee or Sub-Committee for Land Valuation for Tax on Unused Land.
    • Land currently serving the economic activities of physical or legal persons registered with the tax administration.
    • Land with or without buildings under a lease agreement.
    • Land owned by the Royal Government or state institutions.
    • Land owned by communities.
    • Economic land concessions leased from the state for other economic activities.
    • State-owned land leased to any legal or physical person for other economic activities under a contract or agreement between both parties.
    • Land located in Special Economic Zones that directly serves agricultural, industrial, and service activities.
    • Land registered as assets of enterprises in the education, schooling, and vocational training sectors for purposes serving these sectors. In case this land is sold or not used for the above purposes, tax obligations must be fulfilled in accordance with the laws and regulations on taxation in force.

D. Tax Rate, Tax Base, and Tax Calculation

  • Tax on Unused Land shall be collected annually at a rate of 2% (two percent) of the tax base.
  • The tax base for Tax on Unused Land is based on the land value determined by the Committee for Land Valuation for Tax on Unused Land, allowing a deduction of 5 (five) hectares per location.
  • Tax Base Formula:
    Tax Base = (Total Land Area – 50,000 m²) × Land Value
  • Calculation of Tax Payable:
    Tax Payable = Tax Base × Tax Rate

Example: Mr. “A” owns a piece of unused land with an area of 90,000 m². The land value determined by the Committee for Land Valuation for Tax on Unused Land is 15,000 Riels/m². Calculate the tax on unused land for August 2025.

Answer:

  • Tax Base = (90,000 m² – 50,000 m²) × 15,000 Riels/m² = 600,000,000 Riels
  • Tax Payable = 600,000,000 Riels × 2% = 12,000,000 Riels

E. Obligations and Procedures for Tax Declaration and Payment

For land with an area exceeding 5 (five) hectares, the tax declaration and payment for Tax on Unused Land must be submitted at the provincial tax branch where the property is located, or at the General Department of Taxation for properties located nationwide, or online via the mobile application (GDT Taxpayer App), or through commercial partner banks of the General Department of Taxation from January 1 to September 30 of each tax year.

What documents are required for registration or information updates of unused land?

The registration or information updates of unused land must be attached with the following documents:

  • Certificate of immovable property possession right or Certificate of immovable property ownership or documents related to property possession certified by commune/sangkat authorities or higher (copy).
  • Cambodian National Identity Card, Birth Certificate, Passport, Family Book, Residence Book, or residential certification letter of the taxpayer (copy).
  • Photos of the property.
  • Property coordinates (latitude and longitude).
  • Water or electricity bill (if available).
  • Other relevant documents such as: Construction Permit, Construction Site Opening Permit, Construction Site Closing Permit, certification letter from competent authorities (in case of newly constructed or modified structures).
  • Filled Form PT 01 “Application for Immovable Property Registration and Information Update”.