All property owners must file a tax return and pay the Property Tax before 30 September 2012. Failure to register property and pay the property tax may trigger the penalties according to the tax laws. Whilst there is no indication as to how a company will be penalized if it fails to pay property tax or is late in making this payment we can expect penalties in the range of 10 to 40% of the under-declared amount.
Less than Two weeks to go to file for property tax in Cambodia
The Property Tax was introduced last year and is a tax of 0.1% on all immovable property with an assessed value exceeding approximately USD 25,000 and includes land as well as buildings and construction or infrastructure on land. There is an exemption for agricultural land as well as for Embassies and diplomatic missions, government owned immovable property, land owned by NGO’s and buildings in construction. The “final beneficiaries” are required to pay the tax which means the owner of the immovable property if it is not leased to a lessee, or the lessee who has the right to use the land.
DFDL provides the following services in this regard:
1. Property Tax Registration (if the company/individual has not registered the property)
We will complete both the Property Tax Registration and Information forms in Khmer and file these with the appropriate Sang Kat.
We will obtain a Taxpayer Identification Number for the property or land that has been registered.
We will provide you with the original documents that have been submitted and approved by the Sangkat, the assigned Taxpayer Identification Number for the property/land.
Our fees for filing the relevant application for property tax registration are fixed at USD 500 (without VAT and disbursement and to be confirmed based on the location of the land(s)).
2. Property Tax Declaration
The taxpayer is required to submit an annual Property Tax declaration form and payment (if applicable) to the General Department of Taxation by the 30th of September 2012. DFDL will assist in the completion and filing of the Property Tax declaration and payment based on the information provided to us by the Company/individual.
This scope of work will include the preparation of the tax declaration, tax computation, submitting the tax return and advising the Company/individual on tax payment, if applicable, and assisting with the tax payment.
We will provide you with the original tax declaration form, and an English translation, that has been filed with the General Department of Taxation.
Our fees for filing the relevant Property Tax declaration form and payment are fixed at USD 350 (without VAT and disbursement and to be confirmed based on the location of the land(s)).
DFDL also provides the following tax and legal compliance services:
– Monthly and annual tax filings:
Any corporate entity registered with the Real Regime Tax Office must file monthly tax returns with the General Department of Taxation from the date of registration, even if it does not participate in any actual transactions. We provide full tax compliance services for corporate entities covering all applicable tax returns including monthly tax returns such as Prepayment of Profit Tax, VAT, Withholding Tax, Tax on Salary and Annual Tax on Profit Return.
– Patent tax certificate renewal:
All business enterprises must register annually with the tax authorities and pay a standard patent tax or “business registration tax” of approximately US$285 per year as required to be paid by 31 March 2013 for the 2012 year.
For more information in relation to our property tax services and other tax compliance services, please email Rolf Winand at email@example.com
– Annual declaration of commercial enterprise:
Each enterprise must annually lodge an Annual Declaration of Commercial Enterprise with the Ministry of Commerce. Failure to do so may subject one to penalties.
– Corporate secretarial services:
All corporate entities have numerous corporate secretarial responsibilities under Cambodian law. Our Corporate Secretarial Division can assist corporate entities in complying with such responsibilities, including calling and conducting meetings, amending constitutive documents and effecting necessary filings. If you require these services, or are unsure if you require them, please discuss this very important issue with us.
For more information on our corporate compliance services, please email Alex Larkin at firstname.lastname@example.org
– Update of protection documents for landholding companies:
New legal developments under Cambodian laws, notably through the implementation of the new Civil Code, require that the contractual arrangements on which landholding companies structures are based be amended and updated.
For more information on our real estate compliance services, please email Guillaume Massin at email@example.com
We trust that this Client Alert is helpful for you. If you have any questions or require further clarification, please do not hesitate to contact us.
DFDL Tax & Customs and Real Estate Practice Groups