How to Calculate Property Tax
Summary Lesson-Cambodia Property Tax
This tax is applied to immovable properties valued in excess of KHR 100,000,000( approximate USD 25,000).
The term “Property” is referred to lands, houses, buildings and other constructions that are built on the land.
This tax shall be collected annually at a rate of 0.1% (zero point one percent) on the property value.
The value of lands, houses, buildings, and other constructions that are built on the land shall be determined based on the market price by the property evaluation committee which is established by the Prakas of the Minister of Economy and Finance (MoEF).
Tax Base for Property Tax = (value of property x 80% – KHR 100,000,000 )
Property Tax = Tax Base for Property Tax x 0.1 %
Example 1
XYZ Company has the following properties :
1.Land and Building of $80,000 at Khan (district) Tuol Kouk, Phnom Penh
2.Value of Land is $30,000 at Khan (district) Sen Sok, Phnom Penh
Exchange rate at $1 = KHR 4,ooo.
Assume that value of each property based on the Prakas of the Minister of Economy and Finance . Calculate Property Tax for each Khan (district) if any.
Solution
1.Land and Building at Khan Tuol Kouk, Phnom Penh
Tax Base for Property Tax = ( value of property x 80% – KHR 100,000,000 )=(80,000 x 4,000 x 80%-100,000,000)= KHR 156,000,000 > 0
Property Tax for Land and Building at Khan Tuol Kouk = 156,000,000 x 0.1%= KHR 156,000
2.Land at Khan Sen Sok
Tax Base for Property Tax = ( value of property x 80% – KHR 100,000,000 )=(30,000 x 4,000 x 80%-100,000,000)=- KHR 4,000,000 < 0
Because Tax Base for Property Tax at Khan Sen Sok is negative, so land at Khan Sen Sok is not required to pay property tax, but although taxpayer did not pay property tax, XYZ company still submit property tax form to tax authority.
Example 2- Ref :dfdl
Miss X owns property which has a land area of 10m x 30m and a 4-story building with a flat on each floor (E0, E1, E2, E3) of 6m x 15m. The market prices per square meter as evaluated by the Property Evaluation Commission are as follows:
| Land price: | US$300/m2 |
| Ground floor (E0): | US$120/m2 |
| First floor (E1): | US$80/m2 |
| Second floor (E2): | US$65/m2 |
| Third Floor (E3): | US$40m2 |
| Land price: | 10m x 30m x US$300 = | US$ 90,000 |
| Ground floor (E0): | 6m x 15m x US$120 = | US$ 10,800 |
| First floor (E1): | 6m x 15m x US$ 80 = | US$ 7,200 |
| Second floor (E2): | 6m x 15m x US$ 65 = | US$ 5,850 |
| Third floor (E3) | 6m x 15m x US$ 40 = | US$ 3,600 |
| Price of property | US$ 117,450 |
Property Tax = (80%* of Price of property – US$25,000) x 0.1%
= (US$93,960 – US$25,000) x 0.1%
= US$68.96
*Note: During the initial phase of implementation, the tax base is calculated using only 80% of the property value. The initial phase is currently still in effect. The date on which the initial phase will end is not yet known. When the initial phase ends, the full value of the property and not 80% of the value will be used.