GDT Defends Capital Gain Tax Implementation

AKP Phnom Penh, October 02, 2020 —

The General Department of Taxation (GDT) of the Ministry of Economy and Finance has defended the capital gain tax collection and maintained its commitment to begin the collection of this tax from early next year.

The remark was made on Thursday by GDT’s Director General, H.E. Kong Vibol during an event streamed online via the GDT’s Facebook page, in response to public concerns over the tax since it has been recently announced by the GDT.

H.E. Kong Vibol said the collection of capital gain tax does not mean to ‘oppress the people’, but to promote tax fairness and encourage real estate companies to register with the GDT.

As planned, GDT will start tax collection on capital gains made from any sale of certain assets including land, buildings, stocks, bonds, patents and currencies from January 1, 2021 onward.

According to H.E. Kong Vibol, only 20 percent of the capital gains will be taxed (20 percent).

The implementation of capital gains tax was formerly set for July this year, but it was then suspended to January next year.

The GDT said it is producing related videos to raise people’s awareness on the process of capital gains tax collection.

The GDT collected 6,820.48 billion Riel (approximately US$1,684 million) as tax revenue in the first half of this year, a year-on-year increase of 12 percent.

By Chea Vannak