Cambodia to Implement Capital Gains Tax in 2025

What Cambodia’s New Capital Gains Tax Means For Property Owners And Investors

After years of postponements , Cambodia’s Capital Gains Tax (CGT) will officially take effect from 1 September 2025 . This is a landmark reform in the Kingdom’s tax system, impacting property owners, investors, and businesses alike.

The Ministry of Economy and Finance confirmed the rollout through Prakas No. 496 MEF.PRK , issued on 18 July 2025 . Here’s what the updated framework means for you.

What is Capital Gains Tax?

Capital Gains Tax is a flat 20% levy on profits earned from selling or transferring capital assets.

• The tax base = selling price – allowable expenses
• Applies to both individuals and legal entities when they realize a gain

When Does CGT Apply?

• From 1 September 2025 :
  CGT applies to capital gains from:
  • Leases and subleases
  • Investment assets (shares, bonds, securities)
  • Business goodwill (brands, reputation, customer lists)
  • Intellectual property (patents, trademarks, copyrights)
  • Foreign currency transactions
• From 1 January 2026 :
  CGT will also cover immovable property (real estate) sales and transfers.

How is CGT Calculated?

• General rule : 20% of net capital gain
• Immovable property (from 2026) :
  • Lump-sum method : automatic 80% deduction of sale price
  • Actual cost method : deduct acquisition price, improvements, and official fees
• Other assets (from Sept 2025) : only the actual cost method is allowed.

If no profit is made, no CGT is payable.

DEEP DIVE: How Does the Capital Gains Tax in Cambodia work?

Residency & CGT Scope: Understanding Who Pays What

Cambodia’s Capital Gains Tax doesn’t treat everyone the same. The law makes a clear distinction between resident taxpayers and non-resident taxpayers , and this determines where your gains are taxed .

• Residents are taxed on their worldwide gains (profits from assets both inside and outside Cambodia).
• Non-residents are taxed only on gains from Cambodian assets .

What does “taxed on worldwide gains" mean?

For residents, it means that if you earn a profit from selling assets abroad, such as property, shares, or investments in another country, the 20% CGT still applies. However, if you already paid capital gains tax overseas , Cambodia allows a credit so you don’t end up paying twice.

For non-residents, the scope is narrower. They only pay CGT on sales of Cambodian assets, such as real estate or investments located in Cambodia.

Example:

• A Cambodian resident sells shares in Singapore → taxable in Cambodia, but any tax already paid in Singapore can be credited.
• A non-resident sells a Phnom Penh condo → taxable in Cambodia.
• A non-resident sells property in their home country → not taxable in Cambodia.

Exemptions

CGT does not apply to:

• Sale of a primary residence held for at least 5 years
• Agricultural land actively used for cultivation (with approval)
• Transfers via inheritance or first-time family donation
• Properties owned by the state, diplomatic missions, or for public interest
• New share issuances used for capital increases

DEEP DIVE: Important Update for Property Owners: Tax Exemptions Extended, including Capital Gains, extended until the End of 2025

Compliance & Deadlines

• CGT must be declared and paid within three (3) months of realizing a capital gain.
• Transfer Validity: Failure to pay CGT may render the asset transfer legally invalid.

Why Real Estate is Delayed Until 2026

The government postponed real estate inclusion until 1 January 2026 to give property owners and businesses more time to prepare, organize documentation, and adjust financial planning before the new rules apply.

READ MORE: Cambodian Property Tax Guide

Frequently Asked Questions (FAQ)