Cambodia’s Capital Gains Tax (CGT) rules are set out in Prakas No. 496, issued on 18 July 2025. The Prakas explains how CGT applies to profits from selling or transferring “capital assets” in Cambodia, including property, shares and other investments. Below are its key provisions, along with the latest start dates.

CGT is a 20% tax on profits from selling or transferring an asset. For land, houses, and apartments, it has been postponed for another year under Notification 041, now starting from 1 January 2027. For other assets like leases, shares, investments, goodwill, intellectual property, and foreign currency, the tax has been in effect since 1 January 2026. The original start date of 1 September 2025 was delayed by a notification issued on 30 October 2025.

Since the property start date has been pushed back twice, it’s best to watch for further announcements before making plans.

Who pays?

  • Residents (individuals), on assets in Cambodia or overseas.
  • Non-residents (individuals and companies), on assets in Cambodia.

What is exempt?

  • Agricultural land owned by citizens and actively farmed.
  • Your main home, if owned for at least five years (one home only per taxpayer and spouse).
  • Property passed to relatives through inheritance, or through a first-time gift between relatives.
  • Property owned by the State, diplomatic missions or international organisations, and property taken for public use under expropriation law.

Working out the gain on property

Sellers choose one of two methods:

  1. Flat method: deduct 80% of the sale price and pay 20% tax on the remaining 20%. This works out to 4% of the sale price.
  2. Actual-cost method: deduct real, documented expenses.

All other assets must use actual costs. A loss can’t be refunded or set off against other gains.

Example: a $1M property sale (flat method)

CGT is $40,000, paid by the seller. Stamp duty adds another 4%, or $40,000, typically covered by the buyer unless stated otherwise in the sale agreement. The tax is calculated based on the price in the Sale and Purchase Agreement (SPA). However, the General Department of Taxation (GDT) can reassess the price using its own valuation, meaning the final tax might end up being more than 4% of the agreed price.

Important: Under-declaring the price is not a safe way to reduce tax. It breaches tax law, and a transfer is not legally valid until the correct CGT has been paid. A low declared price also becomes the buyer’s cost base, so the buyer would pay more CGT when they later sell.

Filing and paying

  • Declare and pay within three months of each sale.
  • Phnom Penh assets: pay at the GDT.
  • Assets elsewhere: pay at the provincial tax branch, or at the GDT on request.
  • Share sales: the company whose shares are sold withholds and pays the tax.
  • Listed securities and licensed forex trading: the payment agent withholds and pays.

Other rules

  • Overseas assets: if foreign tax paid is less than the Cambodian CGT due, you pay the difference.
  • VAT-registered taxpayers: their gains are taxed under Tax on Income instead, still at 20%.
  • Tax treaty countries: residents of countries with a tax treaty with Cambodia follow the treaty rules.
  • Indirect share transfers: these will be covered by separate rules.
  • Audits: the GDT can audit and reassess.

Gaps identified

  • There’s no adjustment for inflation, no relief when replacing similar assets or restructuring within a group, and unclear handling of indirect transfers and tax treaties.
  • Companies and agents might also face challenges in collecting taxes from non-residents.

Abode suggests keeping well-documented SPAs, maintaining accurate cost records, and seeking professional advice.

CGT update summary

  • 20% tax on profits from selling assets.
  • Property: starts 1 January 2027 (delayed twice so far).
  • Other assets: taxed since 1 January 2026.
  • Main home exempt if owned 5+ years.
  • Flat method: CGT works out to 4% of the sale price, paid by the seller.
  • Stamp duty: a separate 4%, usually paid by the buyer.
  • The GDT can override the SPA price with its own valuation.
  • File and pay within 3 months of each sale.
  • Transfers aren’t legally valid until CGT is paid.
  • Never under-declare the sale price.

This is general information, not tax advice. For a specific sale, confirm the current position with an accountant.

Frequently asked questions (FAQ)

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