The General Department of Taxation (GDT) has extended the deadline for owners to settle their immovable property tax. The usual deadline is September 30 every year. This year’s deadline has been extended to October 31, 2016, a month longer than the usual date.
“Property” is referred to lands, houses, buildings and other constructions that are built on the land.
The GDT has already issued two official notifications, numbers 12723 and 13466, reminding all owners of immoveable property to submit their Property Tax Application and pay their tax.
Notification No. 13466 ordered owners of registered immovable property to pay their 2016 tax at any tax office or branch of Canadia or Acleda Bank, using the receipt for their 2015 property tax payment if the size of their property had not changed size, been separated, demolished, or changed hands. If any such changes have taken place then owners must inform the GDT so the department can update its records for any potential additional tax payments.
Note that the failure to register immovable property and pay tax may result in penalties in accordance with tax regulations.
The purpose of the law is to rationalize the use of land and to benefit the sub-national administrative budget. The property tax is to be imposed in all municipalities and provinces of the Kingdom and applies to immovable properties valued in excess of one-hundred-million Riel (25,000 USD).
Property Tax base
The tax is to be collected annually at a rate of 0.1% of the value of the property. The value of the properties will determined on market prices as evaluated by the Property Evaluation Committee established by the Prakas of the Ministry of Economy and Finance.
Property Tax Calculation: an example from Cam Accounting & Tax Limited is a leading audit firm (Chartered Accountants) in Cambodia which offers Tax, Accounting and Audit Services.
Mr. Heng owns one three-level building (E0, E1, and E2) of 4m x 16m with a total land area of 10m x 40m. The market prices per square metre would be evaluated by the Property Evaluation Committee as follows:
Land price: $400/m2 Ground floor (E0): $120/m2 First floor (E1): $80/m2 Second floor (E2): $65/m2 Land price: $400 x $400 = $160,000 Ground floor (E0): $64 x $120 = $7,680 First floor (E1): $64 x $80 = $5,120 Second floor (E2): $64 x $65 = $4,160 Total price of property: $176,960 Property Tax = (80%* of Price of property – $25,000) x 0.1% = ($ 141,568 – $25,000) x 0.1% = $ 116.5 The information in this article was provided by Mr. Keat Heng (ACCA, CPA), Managing Director of Cam Accounting & Tax Limited.
Contact Cam Accounting & Tax Limited for further assistance. The company will assist you with your immovable property and any payments you are required to make, calculating the amount of tax due by calculating the amount of property tax payable and submitting the correct payment to GDT.
For further information or assistance, contact: Cam Accounting & Tax Limited Head Office:
Head Office: Room 508, 5 Floor, Bayon Market, No. 33‐34, George Dimitrov (St. 114), Sangkat Monorom, Khan 7 Makara, Phnom Penh, Cambodia. Phone:(855) 97 5555 298 E‐mail: partner@cam‐at.com