Capital gain tax to come into effect from Jan 2021

The Cambodian government will start implementing capital gains tax collection from January 1 next year, according to the General Department of Taxation (GDT). The capital gains tax will apply to all properities and other capital investments such as leasing, stocks as well as foreign currency, applying to any profits made by transactions within these areas. The rate of capital gains tax will be fixed at 20%. Anthony Galliano, group chief executive officer of corporate finance firm Cambodian Investment Group said that the introduction of capital gains tax is beneficial to the government treasury and is common in most countries, but that the structure needs to be considered in order to positively contribute to the government finances without discouraging investments or hindering market activity. Ideally capital gains taxes should be apportioned into the short-term and long-term, with different rates, and not applied on transactions of certain assets, in which the government does not want to affect market activity, he explained.  (Source: Khmer Times)