2 Who is liable to pay stamp duty?

3. What are the tax rates and how is stamp duty calculated?

4. What are the exemptions from stamp duty?

What is the Object of Stamp Tax?

The object of stamp tax is the transfer of ownership or possessory rights, or capital contribution of immovable or movable property, share transfers, contracts for the supply of goods or services using state budget, and official documents of a legal nature.

Scope of Stamp Tax Application:

Stamp tax applies to:

The transfer of ownership or possessory rights of immovable and movable property, or capital contributions in immovable/movable assets in a company. The partial or full transfer of company shares. Contracts for the supply of goods or services funded by the state budget. Legal documents, including: Letters of company dissolution Letters of company liquidation

Stamp Tax Rates:

4% of the value of movable property for the transfer of ownership or possessory rights, or capital contribution in movable assets. 0.1% of the share value for share transfers, either in part or in full. 0.1% of the contract value for supply/service contracts using state budget. 1,000,000 Riel (one million Riel) per legal document including dissolution or closure letters.

Tax Base for Stamp Tax:

The value of immovable/movable property is based on market value at the time of transfer. The Ministry of Economy and Finance may determine such market value. The value of shares or equivalent interests is based on market value at the time of transfer. Contract value is based on the amount stated in state-funded supply/service contracts. Each legal document is taxed at a fixed rate of 1,000,000 Riel.

Who Is Liable to Pay the Tax?

Stamp tax liability applies to:

The recipient of ownership or possessory rights of immovable/movable property. The recipient of shares or interests. The recipient of state-funded contracts. The beneficiary of legal documents of an official nature.

Exemptions and Tax Relief:

Stamp tax is exempted in the following cases:

Acquisition of land ownership/rights through state concession. Transfer of ownership/rights within family relations. Acquisition of ownership of motorcycles, tricycles, tractors, or watercraft with power up to 150 horsepower. Property (immovable/movable) registered under the asset list of state institutions in Cambodia. Property transfers involving foreign diplomatic missions, consulates, international organizations, or foreign aid agencies. Purchase of movable assets by enterprises for resale purposes.

Time Frame for Paying Stamp Tax:

Stamp tax must be fully paid within 3 months for the following transactions:

Transfer of ownership or possessory rights of immovable/movable property, or capital contribution. Partial or full transfer of company shares. Contracts for goods or services funded by the state. Legal documents including letters of company dissolution or closure.

This summary is for informational purposes only and does not constitute legal advice. It is not exhaustive, and you should seek professional legal guidance tailored to your specific circumstances. The content of this article is the property of SOPHEAPCAMBOLAW. If you wish to reproduce or use any part of it, you must obtain prior approval.