This service account insists on originality. The author is Zhang Xiaoming, partner of Zhuozhi (Cambodia) Accounting Firm, three years of multinational enterprise management experience, six years of listing audit experience, five years of entrepreneurial experience, Chinese certified public accountant (CPA), international certified public accountant (ACCA) ). Customer Service WeChat: exe5555, 0974589151

There are many Chinese investors investing in real estate in Cambodia, so does your real estate in Cambodia comply with the law? Let's take a look at how the law provides (only discuss taxation).

Real estate must be tax-registered

For immovable properties that have not been registered (including land, apartments, factories, warehouses and other buildings), the owner must contact the tax authority where the immovable property is located to formally register. When registering real estate with the tax authority, the following documents must be submitted:

Tax Form PT01 (issued by GDT)-outlines information about real estate;

Tax Form PT02 (issued by GDT)-Property Tax Application Form;

ID card, birth certificate or passport;

Certificate of residence;

For legal entities that own land, the registration number issued by the Ministry of Commerce and the registration documents issued by other ministries (including GDT) must be provided;

Real estate ownership certificate or ownership certificate issued by the cadastral administration or authority;

Land sale agreement;

Water and electricity bills;

The owner of the real property can also require the registration of an identification card to facilitate the payment of property taxes in the future.

How to pay taxes on real estate

As the name suggests, the real estate tax (TOIP), the so-called real estate tax in China, is levied on all real estate at a rate of 0.1%. The minimum levy is 100 million riel (approximately US$25,000). TOIP is not only applicable to land, but also to buildings, buildings or infrastructure on the land. In theory, it is possible for two taxpayers to pay taxes on real estate on the same piece of land, that is, the owner of the land and the owner of the building. It should be paid before September 30 each year.

TOIP is paid by the owner or "ultimate beneficiary" of the real property, including natural persons and legal persons (ie companies). The ultimate beneficiary refers to the natural or legal person who obtains the right to use, beneficiary, and dispose of the real property. Some of the ultimate beneficiaries may be long-term tenants who have held leases for more than 15 years. In practice, for clarity, the party responsible for real estate tax should be clearly stated in the long-term lease contract.

The 1995 "Finance Law" stipulates that unused land is levied on land idle tax ("TUL"). This tax is for certain vacant land in the city, without any buildings or only abandoned buildings. The landlord shall be based on the assessed value. 2% of TUL should be paid before September 30 each year.

So is it necessary to pay land idle tax ("TUL") and immovable property tax (TOIP) for idle land? The 2015 "Financial Law" clearly stipulates that only real property taxes are levied on unused land.

TOIP is based on the appraisal price issued by the Real Estate Appraisal Committee as the basis for calculating the real property tax base. When determining the tax base for real estate tax, the levy of USD 25,000 will be deducted from the property value, and then a real estate tax rate of 0.1% will be applied.

For example, if Xiao Ming owns a land area of 200 square meters with a floor of 100 square meters built on it, the real estate appraisal committee announced that the price of the land will be 600 US dollars per square meter and the building 300 US dollars per square meter in 2020, then:

The estimated value of the land is: 200*600=120,000.00 (USD)

The evaluation value of the house is: 100*300=30,000.00 (USD)

Property tax payable: (assessed value of property *80%-25,000.00)*0.1%=95 (USD)

Note: Currently, the tax base is calculated at 80% of the estimated value of the property.

Zhuozhi (Cambodia) Accounting Firm provides the following services:

Consultation and optimization of property tax

Property tax registration

Tax Planning

Registration and qualification certificate processing