Tuesday, 4 January 2011

Cambodia To Start Its Property Tax

http://www.tax-news.com/

via CAAI

Monday, January 03, 2011

While the government does not expect it to provide a significant amount of additional revenue, the new property tax in Cambodia will still be launched nationally early in 2011.

The property tax was first agreed by the country’s parliament in November 2009, to be levied on the value of all property, including land and the buildings thereon. Based on official assessments by a property valuation committee, the tax will be levied annually at a rate of 0.1%, after an initial exemption threshold of KHR100m (USD24,400).

With an estimated 180,000 properties liable to pay the tax, the annual revenue to the government from the new levy is only forecast to be up to USD4m.

It has been said that the property tax will nevertheless be important in broadening the tax base in Cambodia, furthering a taxpaying culture in the country, and providing further funds for its development. However, there have also been calls for the government to ensure the accuracy of property valuations and the transparency of the tax’s administration, so that all property owners should make proper payment.

A comprehensive report in our Intelligence Report series dealing with the issues raised by international property investment, and the possible taxation implications raised by such purchases, with an account of the likely (and some less obvious) potential countries for your consideration, is available in the Lowtax Library at

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