The government has decided to extend the stamp duty tax exemption till the end of this year in a bid to help ease the burden on the private sector and people in the Covid-19 context.
The General Department of Taxation (GDT) stated in a statement dated April 22 that stamp duty tax exemption for property worth no more than $70,000 will be extended till the end of 2022.
The move was made after the approval from Prime Minister Hun Sen.
“In accordance with the Strategic Framework and Programs for Economic Recovery in the Context of Living with the COVID-19 in a New Normal 2021-2023 of the government and the notice from Mr Hun Sen, the government has decided to extend stamp duty tax on ownership transfer or property ownership (all sorts of houses) worth equal or below $70,000 till end of December 2022,” read the statement, signed by GDT director-general Kong Vibol.
This is applied to the transactions of property transfers in the period of February 25, 2020, to December 31, 2022, and acquisition of ownership or possession of real estate (all types of housing) from registered housing developer.
The GDT asked all home development companies to make a proper sales contract based on the actual market price.
“If necessary, the General Department of Taxation may re-examine housing developers who have taken the opportunity to reduce the purchase price from the actual market, affecting tax revenue,” the GDT said.
At present, the stamp duty tax on real estate such as houses, buildings and other types of property is 4 percent.
The exemption was first announced in February 2020 by Prime Minister Hun Sen for a one year period, then was extended once to December 2021, and is now extended again.
Property transfer tax income increased by 35 percent to 226 billion riels (approximately US$55.7 million) in the first three months of the year, GDT stated in a monthly meeting held on April 19.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
