Cambodia is turning the page on the taxation of capital gains. In a bold move to align with global tax practices and strengthen fiscal equity, the Ministry of Economy and Finance has officially implemented Cambodia’s Capital Gains Tax (CGT) regime.
The Cambodian Government has introduced Prakas 496 MEF.PRK on Capital Gains Tax dated 18 July 2025 (“Prakas 496”). Prakas 496 signals a clear message: gains from property, shares, and financial assets are no longer out of the tax authority’s reach from their respective dates of implementation.
Whether you’re a real estate investor, shareholder in a Cambodian company, or considering a group restructure that involves Cambodian companies, the new CGT framework brings a mix of structure, scrutiny, and strategic opportunity.
With a flat 20% tax rate and detailed exemptions, deductions, and filing procedures, understanding Prakas 496 is not optional—it’s essential.
The rollout of CGT begins from 1 September 2025 for leases, investment property (which includes shares), business goodwill, intellectual property, and foreign currency, with real estate coming under the spotlight from 1 January 2026. That gives stakeholders a narrow window to reassess their portfolios and prepare for compliance.
We summarize below the key points of Prakas 496 with a more detailed analysis of some of the more critical aspects concerning share transfers.
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Tax services required to be undertaken by a licensed tax agent in Cambodia are provided by Mekong Tax Services Co., Ltd, a member of DFDL and licensed as a Cambodian tax agent under license number – TA201701018
