How should individuals treat tax on capital gains?

Most individuals living and working in Cambodia are familiar with their obligations in relation to tax on salary or, if they work as consultants, duties in relation to withholding tax.

Fewer individuals are familiar with their obligations in relation to capital gains, a type of income realized when an asset (such as a house) increases in value through renovation (‘improvements’) or sale (‘disposal’). This, too, is a type of income, but is not subject to tax on salary as it does not arise from employment nor from the provision of goods or services.

The Law on Taxation provides that such profit realized should be taxed at the following rates:

Annual taxable profit USD Tax rate
From 0 Riel to 6,000,000 Riels $0 to $1,500 0%
From 6,000,001 Riels to 15,000,000 Riels $1,501 to $3,750 5%
From 15,000,001 Riels to 102,000,000 Riels $3751 to $25,500 10%
From 102,000,001 Riels to 150,000,000 Riels $25,501 to $37,500 15%
Greater than 150,000,000 Riels greater than $37,500 20%


For more information on taxation, please see our guide to business in Cambodia.