Presentation on taxes on property ownership, transfer, capital gains and rental. Given at the SME Entrepreneur Forum on March 15th, 2019.

1. PROPERTY TAX
March 15th, 2019
Anthony Galliano
Group CEO, Cambodia Investment
Management Group

2. PROPERTY TAX
TOPICS COVERED IN PRESENTATION
- Withholding Tax
- Accommodation Tax
- Tax on Property
- New Developments

3. PROPERTY TAX
ABOUT THE SPEAKER –ANTHONY GALLIANO
- CEO OF CAMBODIAN INVESTMENT MANAGEMENT, CHAIRMAN OF
PHNOM PENH BG SERVICES OFFICES, PREMIUM HUMAN RESOUCRES,
CAMBODIAN INVESTMENT MANAGEMENT INSURANCE AGENT,
DYNAMO DIGITAL AND JUMP DIGITAL
- CORPORATE AND INVESTMENT BANKER FOR 27 YEARS WITH CITIBANK
AND ANZ (N.Y., U.K., BELGIUM, H.K., THAILAND, INDONESIA,
CAMBODIA)
- DEGREE IN ACCOUNTING, DIPLOMA IN CAMBODIAN TAX, PASSED
NASD LICENSES FOR GENERAL SECURITIES REPRESENTATIVE, GENERAL
SECURITIES PRINCIPAL, UNIFORM STATE LAW, and REGISTERED
INVESTMENT ADVISER.

4. PROPERTY TAX
Withholding Tax
- Deducted at Source
- Rent Interest/Royalty Income, Income connected with
the use Property, compensation for management and
technical services, dividends paid to non-resident.
- Article 25 Law of Taxation, rate of 10% on the income
from rental of movable or immovable property
- Due at time the payment is made or time when
exposure is recorded in the books of the enterprise

5. PROPERTY TAX
Withholding Tax
How should it be paid:
- Landlord is not a registered taxpayer, lessee deducts
from source, registered tax payer pays on tax return.
- Landlord is registered tax payer and lessee is registered
taxpayer, pay VAT and withhold. Deduct at source,
lessee pays on tax return

6. PROPERTY TAX
Withholding Tax Example
- Rent is USD 1000.00 per month
- USD 1,000/.9
- Gross-up to 1,111.11, deduct 111.11 withhold
- Pay 1,000 to landlord, USD 111.11 in Tax
- Full benefit of the USD 1,111.11 for Lessee
- Lessor, if registered taxpayer can claim the USD 111.11
Withholding Tax Credit
- What not to do, USD 1,000 payment to landlord and USD
100 to Tax department. Can pay landlord 900.00 and
tax department 100.00, acceptable.

7. PROPERTY TAX
Withholding/Instruction 18410
- Real Estate company that lease property are required to
withhold 10% of rental payment to the owner
- If the Real Estate Company subleases the same
immovable property to a third party who is a registered
for taxpayer, than no withholding tax is paid again to
the Real Estate company.

8. PROPERTY TAX
Accommodation Tax
- Hotel and Accommodation Services
- Hotel, Supply of Residence Service, area in the form of
room & bed, other services by Hotel
- Hotel includes: Hotel apartment, Suite Hotel, Resort
Hotel, Motel, Lodge, Bungalow, Guest House, Tourist
Camp. Other Accommodation Services
- Not a flat or House

9. PROPERTY TAX
Accommodation Tax
- Is taxed at 2% on the Room Cost, inclusive of other
Service
- Charged on all taxes except AT and VAT
- Is due and Payable at the time of Supply
- Returns due 20th of the following month

10. PROPERTY TAX
Property Tax
- Law of Property Tax , January 1ST, 2011
- Annual Tax on Immovable Property
- Register for Property Tax
- Applies to individuals as well as Companies
- .1% of the tax Base
- Property with value in excess of USD 25,000 or (KHR
100,000,000)
- 80% of value
- Tax base derived from a value determined by Real
Estate Evaluation Commission established by Prakas by
MEF
- Tax Payment and Filing Yearly

11. PROPERTY TAX
Property Tax/Register
- Contact the Tax Branch where the property is located
and formally register
- Form PT01, outlines the information about the
immovable property
- Form PT02 is the property tax application
- Need, ID card or Birth Certificate or Passport, Residence
Book or Family Book or Residency Letter, Certificate of
Immovable Property ownership or Ownership issued by
Cadastral administration
- Land and Sale Purchase Agreement
- Water and Electric Bill to show address

12. PROPERTY TAX
Property Tax
- Land: with or without building or construction, covered
by water, exceptions are agricultural land, owned by
state, Industrial facilities on SEZ
- House: Residence, apartment, town house, villa,
different floors will be valued differently
- Building and Construction, less than 80%, no tax

13. PROPERTY TAX
Property Tax/Who Pays
- Owner of Immovable Property, having Title Deed or
Land Title Certificate, or Certificate of Land to Real
Estate issued by Cadastral Administration
- Must have Title Deed, Hard Title Only
- Possessor having Title Deed or Land Title Certificate, or
Certificate of Land to Real Estate issued by Cadastral
Administration
- Holds Soft Title
- Benefiiciary, Right to Use, Long-Term Lessee or inherited

14. PROPERTY TAX
Calculation
Basics:
- 25k is the threshold for registration and tax liability
- 80% of value
- 25K deduction
- .1% Tax
- Property 100k
100,000 x 80% = 80,000 less 25,000 = 55,000
55,000 X .1%= USD 55

15. PROPERTY TAX
Unused Land Tax
The Unused Land Tax is levied on a non-constructed land
and the abandon constructed land which are located in
the cities and the areas which are levied by the Unused
Land Appraisal Committee (ULAC)
The Unused Land Tax is paid by the owners
The Tax Base is the market value of land within each cities
and regions which is evaluated in square meter and levied
by the ULAC by June 30th every year
The Unused Land Tax is imposed at the rate of 2% (two
percents) on the tax base.

16. PROPERTY TAX
New Developments
2019 Law on Financial Management expanded the scope of Article 7
from a legal person, which previously excluded individuals, to now
include a physical person.
What this means is that “taxable income” may be applied to individuals
Capital gains;
Interest;
Rental income,
Royalty income,
Income received from financial assets or investment assets including real
estate.
Additional guidance will also be provided on how the Tax on Income for
individuals will be collected through a new Sub-decree.