Exceptional Performance by Customs and Taxation

The results, released on January 27, 2026, highlight the synchronized efforts of the General Department of Taxation (GDT) and the General Department of Customs and Excise (GDCE).

• Customs Success: The GDCE, led by Director-General H.E. Kun Nhim, collected US$3.2 billion, exceeding its target by an impressive 24.5%. H.E. Kun Nhim noted that these figures are comparable to the record-breaking performance of 2019, driven by high demand for automobiles, machinery, and construction materials.
• Internal Tax Growth: The GDT, headed by Director-General H.E. Kong Vibol, generated over US$3.5 billion. This represents a steady 3.25% increase from 2024, supported by improved tax administration and increased compliance in the manufacturing and financial sectors.

Strengthening Public Finances for 2026

The Royal Government of Cambodia has positioned these fiscal achievements as the foundation for its 2026 Law on Finance for Management. For the upcoming year, the government has authorized a revenue framework of approximately $7.5 billion, with fiscal revenue expected to contribute over $6.3 billion.

This reliance on tax and customs collections as the “backbone of public finances” reflects a maturing economy that is increasingly self-sustaining. The government has notably committed to not introducing new taxes or increasing rates in 2026, focusing instead on enhancing efficiency and supporting the private sector to improve living standards.

A Beacon for Foreign Investment

For foreign investors, Cambodia’s ability to meet and exceed its revenue targets despite external pressures is a key indicator of macroeconomic stability. The steady revenue stream allows the government to:

• Prioritize Infrastructure: Financing major projects that reduce logistics costs for businesses.
• Expand Social Protection: Ensuring a stable social environment that supports a healthy workforce.
• Maintain Fiscal Discipline: Reducing the need for external borrowing and safeguarding national sovereignty.

As Cambodia advances toward its goal of becoming an upper middle-income country by 2030, its transparent and efficient tax system remains a critical tool for fostering a competitive business climate and driving sustainable economic growth in Cambodia.

FAQ: Cambodia’s 2025 Tax Performance

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1. The 2027 Postponement: Relief for Homeowners

The General Department of Taxation (GDT) recently confirmed that individuals selling land or buildings will enjoy another year of relief.

• New Deadline: January 1, 2027.
• What this means: If you sell your condo or villa in 2026, you are still exempt from the 20% CGT. However, you must still pay the 4% Stamp Duty (Transfer Tax) as usual.
• Strategic Window: This 12-month extension is the perfect time for property owners to “exit” or restructure their portfolios before the 20% hit begins next year.

2. Effective Now: Share Transfers and Investment Assets

Unlike real estate, other forms of capital are not exempt in 2026. If you are an expat business owner or investor, the 20% CGT now applies to:

• Share Transfers: Selling your stake in a Cambodian Co., Ltd.
• Leases: The transfer or sublease of long-term leasehold rights.
• Intellectual Property: Selling trademarks or patents.
• Foreign Currency: Gains made from currency exchange fluctuations during business transactions.

3. Resident vs. Non-Resident: Who Pays What?

Your tax liability depends on your residency status, which is determined by the 182-day rule:

• Tax Residents: If you stay in Cambodia for more than 182 days in any 12-month period, you are taxed on worldwide capital gains. If you sell a house in the UK or US while being a resident here, you may owe tax in Cambodia (though Double Tax Agreements or DTA usually offer credits).
• Non-Residents: You are only taxed on gains sourced within Cambodia.

4. How to Calculate Your Tax (The 80/20 Rule)

For assets that are currently taxable (or for real estate planning), the GDT allows two methods:

1. Lump-Sum Deduction (Most Popular): You automatically deduct 80% of the sales price as “expenses.” You only pay 20% tax on the remaining 20% of the profit.
   • Effective Rate: This equals 4% of the total sale price.
2. Actual Expense Method: You deduct the actual cost of purchase, improvements, and official fees. This is better if your profit margin is very low.

Unique Insider Insight: The “3-Month Rule”

The biggest trap for expats is the declaration deadline. Once a capital gain is “realized” (the contract is signed or the payment is made), you have only 3 months to file and pay the tax. Failure to do so can result in penalties of up to 40% of the tax amount, plus monthly interest. In 2026, the GDT has digitized this process—you can now file via the GDT Taxpayer App.

Recommended Reading

• Cambodia’s 2026 FDI Outlook – See how tax policies are shaping new investment trends.
• Cambodia Postpones 20% Capital Gains Tax to 2027 – Understanding the GDT’s Decision—Why the 2027 Delay?
• The Council for the Development of Cambodia (CDC) – Official portal for Qualified Investment Projects (QIP) and tax incentives.

FAQ

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