Unused Lands of Less Than 5ha to Lose Tax Exemption
The exemption will apply from the start of 2025, he told the 19th Royal Government-Private Sector forum on Nov.13. Prime Minister Hun Manet / Telegram
- By Ung Chamroeun
- November 14, 2023 9:00 AM
PHNOM PENH – Landowners will pay no unused land tax on areas less than five hectares, Prime Minister Hun Manet says.
The exemption will apply from the start of 2025, he told the 19th Royal Government-Private Sector forum on Nov.13.
“The objective of unused land tax is to ensure that land is not left too big,” he said.
“Landowners should use lands for business activities to make profit instead of leaving it vacant.”
Owners of unused land pay two percent of its market value as determined by the Commission for Valuation of Unused Land.
During the forum, Hun Manet also spoke of the conditions for areas of more than five hectares of unused lands to be tax-exempt.
These include cultivation, for economic purposes with legal entities registered for land tax, land with or without construction under an economic land lease agreement, land owned by the government, economic land concessions leased from the government or community land and land, in a special economic zone.
In some cases, land had been tax-exempt because owners said it was intended to build a school. However, it had been sold for personal advantage. This land will be taxed.
Hun Manet said the 2025 start date would allow for a 13-month transitional period for those affected.
Originally written in Khmer for ThmeyThmey, this story was translated by Rin Ousa for Cambodianess.
