The taxman cometh – Cambodia’s capital gains tax casts the net on individual taxpayers

In a country where only limited personal income tax existed, the new taxation law beginning January 1, 2021, will make taxpayers out of Cambodians, whether they are ready for it or not.

About two years ago, a little known amendment was made to Article 7 of the Law on Taxation to include physical persons (individuals) to the original text which until then only featured legal persons, meaning registered businesses.

Uncannily, nothing much was discussed publicly, apart from intellectual literature and discourses, where some found its way to the internet.

According to Article 7, taxable income is the result of the adjustment of deductible expense on the total income in a tax year, which shall be determined by sub-decree.

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