The government has decided to delay the implementation of capital gains tax to January 1st, 2022, according to a statement from the General Department of Taxation.
As we can read in the official statement, The GDT of the Ministry of Economy and Finance is to inform the taxpayers and public that, according to a letter from the Ministry of Economy and Finance sent to Prime Minister Hun Sen, it proposes a delay in the implementation of capital gains tax. The Prime Minister approved it on October 9,(…) The government has decided to delay the date of the implementation of capital gains tax until the end of 2021 in order to give enough time for taxpayers and the public to comprehensively understand its regulations as well as being prepared to implement it smoothly and effectively.
Kim Heang, regional operating principal of the US-based real estate firm Keller William Cambodia, welcomed the move. He also said it will help people, businessmen, and investors during the Coronavirus pandemic and recent flooding. He also said that if COVID-19 is defeated by the end of the year or next year everyone can participate in implementing capital gains tax, but there is no certainty the virus will end this year or next year. People just have to wait and see whether a vaccine is created.
The government’s tax collection remains strong even during the COVID-19 pandemic, reaching more than $2.25 billion in the first nine months of this year, according to a report by the General Department of Taxation.
This is very unexpected move that will be welcomed by a lot of investors.