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.
Capital Gains Tax is a flat 20% levy on profits earned from selling or transferring capital assets.
If no profit is made, no CGT is payable.
DEEP DIVE: How Does the Capital Gains Tax in Cambodia work?
Cambodia’s Capital Gains Tax doesn’t treat everyone the same. The law makes a clear distinction between resident taxpayers និង non-resident taxpayers , and this determines where your gains are taxed .
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:
CGT does not apply to:
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
At a flat 20% , Cambodia’s Capital Gains Tax looks higher than what some neighboring countries impose:
Vietnam : 0.1% on the gross sale price of real estate for individuals
Philippines : 6% final tax on real property
Thailand : Gains often taxed as income (progressive 5%–35%), but no general CGT
Malaysia & Singapore : No general capital gains tax (though Malaysia applies Real Property Gains Tax on certain disposals)
On the surface, this might make Cambodia seem less competitive for investors who compare tax rates alone.
The introduction of Capital Gains Tax is a milestone reform in Cambodia’s financial landscape. While the rules may feel complex, the phased rollout gives individuals and businesses time to prepare before real estate is included in 2026.
At IPS , we help clients navigate these changes. Whether you’re selling, buying, or planning your next move.
👉 Got questions about Capital Gains Tax and how it affects your property? Contact IPS Cambodia today !
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