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Tax Base to Calculate the Stamp Duty Tax for the Transfer of Ownership or Right of Possession of Immovable Property

On 22 March 2019, the Ministry of Economy and Finance (“MEF”) issued the new Prakas on the tax base to calculate the stamp duty tax on the transfer of ownership or right of possession of immovable property such as construction and/or land, located at geographical areas of capitals and provinces of Cambodia.

Under this new Prakas, the stamp duty tax is determined with the rate of 4% of the value of the immovable property which is the objective of the transfer of ownership or right of possession​ (the “4% of Stamp Duty Tax”).

The 4% of Stamp Duty Tax is determined in priority order as below:

  • The value of the immovable property as determined in the appendix of this new Prakas; and
  • The value of immovable property as determined in transfer of ownership or right of possession contract, or other relevant legal documents in case its value is equal or higher than the value stated in the appendix of this new Prakas.

Please note that this new Prakas is effective from the date of 01 July 2019.

Should you need any advice and/or clarification on this matter, please do not hesitate to contact us.