Cambodia Capital Gains Tax Guide 2026

Overview — CGT in Cambodia

Capital Gains Tax (CGT) in Cambodia was introduced through Prakas (ministerial regulation) in 2024, with full enforcement beginning in 2025. The tax applies to gains realised from the sale or transfer of real estate and shares in companies (both listed and unlisted) where the asset is sold within 5 years of acquisition. Assets held for more than 5 years are generally not subject to CGT. The standard rate is 20% of the net capital gain. This is a landmark change for Cambodia, which previously had no capital gains tax regime.

Scope of CGT

CGT applies to the following categories of assets when disposed of within 5 years of acquisition:

• Real estate: Land, buildings, condominiums, and immovable property
• Shares: Shares in Cambodian companies (both public and private)
• Other capital assets: As determined by the GDT

Exemptions include: assets held for more than 5 years, primary residences (subject to conditions), transfers between family members (direct line), and transfers resulting from corporate restructuring. Agricultural land used for subsistence farming may also be exempt.

Calculation of Capital Gains

The capital gain is calculated as the difference between the selling price and the acquisition cost, less allowable costs. Allowable deductions include:

• Acquisition cost (purchase price or construction cost)
• Legal fees and transfer taxes paid on acquisition
• Capital improvements and renovations
• Agent commissions and advertising costs on sale
• Stamp duty and registration fees

If the acquisition cost cannot be reliably documented, the GDT may apply a deemed gain based on the selling price (typically 80% of the sale price is treated as cost, resulting in CGT on 20% of the sale price effectively).

CGT Rate — 20%

The CGT rate is a flat 20% of the net capital gain. For example, if an individual purchases property for KHR 500 million and sells it for KHR 700 million within 5 years, the capital gain is KHR 200 million and the CGT payable is KHR 40 million (20% × KHR 200 million). If the deemed gain method is used, the tax is calculated as 20% of (sale price — 80% of sale price) = 4% of the sale price. For shares, the CGT is payable on the gain calculated as sale proceeds minus documented acquisition cost.

Filing and Payment

CGT is declared and paid when the asset is sold. The seller must file a CGT return with the GDT within 30 days of the sale or transfer. The tax must be paid at the time of filing. For real estate transactions, the CGT is typically handled through the Property Transfer Office at the time of transfer registration. For share transfers, the CGT return is filed through the GDT Tax Portal. Late filing attracts a penalty of 10% of the CGT due, plus interest at 1.5% per month.

Interaction with Other Taxes

CGT applies in addition to other taxes on property transactions. The seller is liable for CGT, while the buyer pays property transfer tax (stamp duty at 4% of the property value). For businesses, capital gains are generally included in taxable income under CIT, but the separate CGT regime may apply to gains on assets held under 5 years. If CGT is paid, the gain is excluded from CIT for the same transaction. Individuals are not subject to additional tax on CGT-paid gains.

FAQs

Is CGT payable on the sale of my primary residence?

Primary residences may be exempt from CGT, subject to conditions. The exemption typically applies if the property has been the owner's principal home for at least 5 years. Consult the GDT for specific qualifying criteria.

How is CGT calculated if I cannot prove the purchase price?

The GDT applies a deemed gain method, treating 80% of the sale price as the assumed cost. This results in CGT of 4% of the sale price (20% CGT × 20% deemed gain).

Does CGT apply to inherited property?

Inherited property is generally not subject to CGT at the time of inheritance (no inheritance tax in Cambodia). However, if the heir sells the inherited property within 5 years of the original owner's acquisition date, CGT may apply.

Are losses on capital assets deductible?

Capital losses can be offset against capital gains in the same year. Unused losses may be carried forward for up to 5 years. Losses cannot be offset against ordinary income.

Disclaimer

This guide provides general information about Cambodian capital gains tax for the 2026 tax year. The CGT regime is new and regulations may evolve. Always consult with a qualified Cambodian tax advisor or the General Department of Taxation for advice specific to your situation. InvestmentKit does not provide tax advice.