The Ministry of Economy and Finance (MEF) has granted a three-year property tax exemption to four communes in Kandal province’s Takmao Town, according to a recently released ministry prakas (directive).
Property owners in Svay Rolum, Koh Anlong Chen, Roka Khpos and Setbou will not be required to pay the yearly 0.1 percent levy.
Under Cambodian taxation law, real estate and land owners must pay the tax, which varies depending on factors including property size and land area. However, properties worth less than 100 million riels ($25,000) are already exempt.
Meas Sok Sensan, spokesman for the Finance Ministry told Khmer Times that the exemption is not a fiscal-alleviation aid in response to COVID-19 but rather an adjustment period following a change
of administration management.
“Previously, those four communes were under the province’s district administration, which is not required to pay the yearly property tax but now they are under town administration, which does require properties to be taxed. But we cannot force people to pay the tax immediately, so that’s the reasoning behind the tax break until 2023,” he said.
Since the outbreak of COVID-19, the government has provided tax relief to main sectors such as the tourism and services sector. This includes a three-month minimum tax exemption for the aviation sector.
In addition, to alleviate further economic shock, the government
has also provided an incentive policy for the construction and property sector where property below $70,000 will be tax- exempted.