In an attempt to bring in additional income, the Cambodian government is set to roll out new tax hikes on real estate and entertainment, two of the country’s biggest money makers. According to the Khmer Times, who cite a directive issued last week by the General Department of Taxation (GDT), tax revenue collected as already risen significantly this year.
The first new tax was a withholding tax of 10 per cent levied on real estate agents in the country once any sale or rental of a property has been completed. The second new tax is a 14 per cent withholding tax on foreign film production companies and local theatres authorised to screen movies in the country.
“If a local cinema pays for film authorisation and transfers to a local agent, the agent will not be entitled to pay for film authorization in the form of the withholding tax because the local agent is not the owner of the film,” the GDT said in a statement.
Tax collection in Cambodia during the first 10 months of the year increased by more than 20 per cent from the same period in 2015, the newspaper reports. Tax revenues between January and October of this year were USD1.3 billion
“In my view, the general department of taxation should hold a public forum and invite all real estate agents so they know their tax obligation,” says Kim Heang, president of the Cambodian Valuers and Estate Agents Association. “I think it’s the best way as many don’t know much.”
This story was originally published on Property-report.com.
