Construction, real estate get government support
Amid concerns over global economic risks, the government announced several measures to support construction and real estate as they are among the prioritized sectors in Cambodia, according to a press statement from a committee of the Ministry of Economy and Finance (MEF).
The statement released on Monday by MEF’s Economic and Financial Policy Committee (EFPC) pointed out that the government issued a package of eight measures mostly in the fiscal and monetary policies two days before Khmer New Year festival to restore these sectors.
Firstly, the implementation of taxes as package on by-phase basis is delayed until the end of 2024 for the township project development firms that have been operating with real estate business license awarded by the Real Estate and Pawnshop Regulator (RPR), according to the statement, adding that the government urged the unlicensed to be registered with RPR.
“The government has decided to release these additional measures … especially to maintain jobs for workers and improve the financial ability of the people who have low and medium income to buy reasonably-priced houses. EFPC will set up mechanisms to track, monitor and assess the situation of construction and release sectors regularly,” said the statement.
The government also extended the duration of tax payment as package by phase from 12 months to 18 months for township project development firms that pay less than $1 million in taxes and from 24 months to 36 months for those who pay over $1 million in taxes, but new developers or projects that have not been developed have to pay taxes on real regime.
It also indicated that the implementation of 20 percent capital gain tax percent that covers capital gained from a resident or non-resident selling immovable properties, leases, investment/financial assets, good—licenses and branding, intellectual property and foreign currency has also been delayed from January 1, 2024 to the end of 2024.
Addressing the opening session of the Macroeconomic Management and Budget Law 2023, MEF’s Secretary of State Vongsey Vissoth said the construction and real estate have been facing hard times in 2022 and 2023. “These sectors have still been very tough and the problems could continue if the inflow of foreign investment is still slow especially from China,” Vissoth said.
