Law Digest 2024

October

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Tax

This Prakas modifies the provisions regarding voluntary tax return adjustments outlined in Article 3 of Prakas No. 071.

Key modifications

• The deadline for exemption from administrative penalties for taxpayers or withholding tax agents who voluntarily correct their accounting records and tax returns has been extended to 30 June 2025 from 30 June 2024.
• The date of transactions for which corrections to accounting records and tax returns can be made has been extended to before August 2024, from the previous deadline of January 2024.

Other provisions

All other provisions of Article 3 of Prakas No. 071 remain unchanged, as follows:

• Exemption from administrative penalties for corrections made during tax audits if they are made before the issuance of audit findings.
• The number of administrative penalties for corrective action is set after the issuance of audit findings.
• Payment credits are applied after the issuance of audit findings.

This Prakas aims to stimulate the growth of the tourism sector by providing tax incentives to businesses such as hotels, guesthouses, restaurants, and travel agencies that are legally registered in Siem Reap province. It replaces previous Prakas No. 199 dated 8 February 2024, which applied to four provinces. Under the new Prakas, the tax incentives will be limited to businesses within Siem Reap province.

Tax incentives

• Exemption from all monthly taxes, except for VAT and accommodation tax, for the period 1 July 2024 to 30 June 2025.
• Exemption from annual income tax and tax audits for fiscal year 2024. If income tax has already been paid for 2024, it will be credited toward the income tax liability for the year 2025.

Obligations

Businesses must still meet the following obligations:

• Small taxpayers must file tax returns using the form, timeline, and location designated by the tax administration, or may choose to use the General Department of Taxation’s tax filing app.
• Medium and large taxpayers are required to file their monthly tax returns using the online business tax declaration system (e-filing) and the annual income tax return through the online income tax declaration system (TOI e-filing) in accordance with existing tax regulations.
• All businesses must prepare and maintain proper accounting records and all business-related documents.

This Prakas aims to reduce the tax burden on companies engaged in housing development and assist property owners.

Key incentives are as follows:

• The exemption from/reduction in stamp tax on the transfer of ownership or possession of Borey housing has been extended through 31 December 2025.
• The application of capital gains tax on real estate owned by natural persons has been extended through 31 December 2025.
• The exemption from property tax for agricultural land used for cultivation has been extended to remain valid as long as the land is actively utilized for agriculture.
• The exemption from property tax for residential land used for agricultural purposes has been extended through 30 June 2025.

The suspension of unused land tax has been extended through 31 December 2024.

September

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Tax

The instruction, which is effective from the date of signature, provides new guidance on immovable property lease agreements that include a period for construction, design, renovation, or improvement. It provides a business-friendly approach for taxpayers by allowing a grace period of up to 10% of the total lease term contract for lessees to renovate or repair the property for business use where there is no or reduced rental payments (and thus no or lower applicable income tax and value added tax).

To ensure compliance, property owners must notify the GDT of any rent-free or reduced rent period within 30 days of signing the lease agreement, and if the period will exceed the maximum 10% period allowed, prior approval must be obtained.

Labor

Effective from January 1, 2025, the new monthly minimum wages for garment, textile, footwear, travel product, and bag workers are as follows:

• Regular workers: USD 208 per month
• Probationary workers: USD 206 per month

In addition, provisions regarding the minimum wage for piece-rate workers (those whose pay is based on their production level) are as follows:

• If their output exceeds the minimum wage, they are entitled to the higher paid amount.
• If their output falls below the minimum wage, employers are obliged to adjust their pay to at least the 2025 minimum wage.

All other benefits typically provided to workers in this sector will remain unchanged.

August

Labor

The MLVT announced a new mobile app, which is an additional method for registering NSSF members. The app aims to streamline and enhance the efficiency of the registration process, providing a more accessible and user-friendly experience. To ensure a smooth transition, the MLVT has a dedicated support team available around the clock to assist members through the following channels:
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Hotline number: 1286 or 1297
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NSSF official telegram channel: https://t.me/nssfcambodia_Chat
This notification takes immediate effect on the date of issuance.

Media

This Prakas announces the implementation of the Journalism Profession Charter (as attached to the Prakas). The charter, which entered into effect on the date of issuance, sets out the foundational guidelines for ethical and professional standards of conduct in journalism within the Kingdom of Cambodia. It applies to all individuals engaged in journalism activities. Key highlights are below:

I. Scope

The charter applies to all journalists across various fields—professional journalists, photo journalists, online journalists, freelance journalists, radio and television journalists, publishers, press units, journalist associations, and other media practitioners in both traditional and new media. It also sets out legal and social responsibility guidelines for non-professionals engaged in journalism-related activities, such as content creators, bloggers, citizen journalists, online monetizers, and key opinion leaders (defined as an individual widely acknowledged as an authority on a specific subject who can influence public opinion).

II. Professional Qualifications

To be considered a professional journalist, individuals must meet the following criteria:

• Be at least 18 years old and possess full legal capacity
• Hold at least a lower secondary education certificate or its equivalent
• Have completed a journalism training course from an accredited institution, or other training course by the Ministry of Information, or a recognized journalist association
• Be registered with and recognized by the Ministry of Information

III. Fundamental Principles of Journalism

The key basic principles that ALL journalists (professional and otherwise) must adhere to are:

1. Freedom with Responsibility: Journalists must exercise press freedom responsibly, adhering to the provisions of the Cambodian Constitution, and other regulations and ethical standards. Moreover, they must avoid using this right to harm other persons’ dignity, reputations, and national stability.
2. Accuracy of Information: Journalists are required to ensure that their news and audiovisual content are factual and accurate, avoiding the spread of false information, misinformation, or fake news.
3. Social Accountability: Journalists should prioritize news that benefits society and the nation, while avoiding content that is harmful to peace, security, the public order, religious harmony, culture, or individuals’ rights. In addition, they should promote social pluralism, openness, and diverse perspectives; contribute to public education and anti-corruption; and prevent the dissemination of harmful information.
4. Independence and Neutrality: Journalists must maintain independence and neutrality, avoiding spreading conflicting or biased information.
5. Compliance with Laws: Journalists must comply with the relevant Cambodian laws and regulations, respecting legal boundaries related to publication, intellectual property rights, and appropriate language. They are prohibited from engaging in defamation, bribery, extortion, or infringement of intellectual property rights.
6. Promotion of Professional Dignity: Journalists must uphold the interests of the profession and promote its value to gain societal trust. They must remain independent, impartial, and honest, and prioritize public and societal interests over personal or external influences.

IV. Rights and Obligations

Journalists and media entities must register with the Ministry of information to receive the social and legal protections afforded professional journalists. They have the right to report and disseminate the news freely within Cambodia, provided they comply with the applicable laws.

Journalists and media units have the right and duty to gather and disseminate information in all forms, ensuring that factual information is presented clearly, while respecting individual rights and avoiding defamation.

V. Responsibilities

Individuals carrying out activities in the news and audiovisual sectors within Cambodia must adhere to the following responsibilities:

1. Social Responsibility: They must respect individual privacy and dignity and avoid infringing on the rights of others in their reporting in order to protect the interests of the public and to develop the public’s trust in the journalism sector.
2. Professional Conduct: Professional misconduct is subject to legal consequences under the Press Law No. NS/RMK/0895/07 dated 1 September 1995. Practitioners must operate free from undue pressure or influence, adhere to the Press Law, and maintain professional integrity.
3. Civil and Criminal Liability: Practitioners must comply with Cambodian laws. Misconduct or abuse not covered under press freedom may result in civil or criminal consequences as specified in the relevant legal and regulatory frameworks.

July

Property Registration

This Sub-Decree, which enters into effect from the date of signing, aims to promote the completion of the ongoing initial systematic land registration campaign, setting a goal of two to four years. As part of this, the collection and recording of the cadastral land registration fees will temporarily (from now until 31 December 2027) be assigned to and supervised by the Ministry of Land Management, Urban Planning, and Construction. The revenue collected will be allocated to cover the expenses and costs associated with the initial systematic land registration process and the costs for poor households.

After 31 December 2027, the capital and provincial administrations will take over supervision of the revenue collection for land registration under their jurisdiction.

This Prakas applies only to co-owned buildings built before 19 December 1997 and establishes the rules and procedures for the registration of private units in those buildings.

Below are the key highlights of the Prakas:

1. Registration formalities

To apply for co-ownership registration, the applicant must submit the following documents:

• The completed registration application form, in Khmer and executed appropriately (see below)
• Two copies of the document confirming co-ownership
• Two copies of the document confirming legal possession of the immovable property

The supporting documents are not required to be certified by the local authorities.

The requirements for execution of the application form depend on the type of the applicant, as follows:

a) Individuals

The application form must be signed or include the right thumbprint of the applicant.

b) Sole proprietorships

The application form must have the entity’s official stamp affixed, and be signed or include the right thumbprint of the legal representative, with their full name.

c) Partnerships and companies

The application form must have the entity’s official stamp affixed, be signed or include the right thumbprint of the legal representative, with their full name, and there needs to be a power of attorney from the shareholders or board of directors as specified in the entity’s articles of incorporation.

d) Other legal entities

The application form must have the entity’s official stamp affixed, be signed or include the right thumbprint of the legal representative, with their full name, and there needs to be a power of attorney from the designated decision-maker of the entity.

Note: The application form and power of attorney templates are provided in Annexes 1 and 2 of the Prakas, respectively.

2. Registration procedures

The procedures for registration will be the same as those outlined in Sub-Decree No. 46 dated 31 May 2002 and subsequent regulations. If the building is part of the systematic land registration process and owners missed out on doing the registration, they may register their property through the complementary land registration outlined in Sub-Decree No. 48 dated 31 May 2002 and other subsequent regulations. Applicant must pay a registration fee as stipulated in other Prakas.

As part of the procedures, owners of private units must provide the original current title certificate or other legal documents confirming the legal possessory rights over the property to the cadastral administration in exchange for a strata title of the co-owned building.

Advertising

This Prakas aims to regulate all forms of advertising of alcoholic products with an alcoholic content that exceeds 3% in order to ensure social order, public welfare, and the protection of the national economy, culture and tradition, while promoting fair competition.

Before advertising alcoholic products, a permit must be obtained from the Alcohol Control Working Group (“ACWG”). The application can be applied for online or in person at the One Window Service Office (“OWSO”) of the ACWG during working hours. The review and approval process could take up to seven working days. Once a permit is granted, all advertisements for alcoholic products must adhere to the principles and guidelines outlined in Article 3 of the Prakas, which include avoiding the targeting of minors in any advertising content, refraining from using sexual images or themes that negatively affect the cultural value and dignity of Cambodian women, and ensuring advertisements are displayed at least 200 meters away from educational, religious, cultural, and health institutions, international airports, and other sensitive locations.

In addition, local authorities must cooperate to grant permission for the display of billboards or other promotional materials within their jurisdictions through the OWSO of capital and provincial administrative offices, following authorization from the ACWG.

June

Passport Services

The Ministry of Interior is introducing an online passport application service; although it does not automate the process completely, it will simplify the passport application process and reduce waiting times at passport offices. The service can be accessed at https://online.gdi.gov.kh/login or by scanning the QR code provided below. After completion of the online application, applicants will have to make an appointment to visit the designated passport office in person to undergo an interview, have their photo taken and fingerprints scanned, pay the administrative fee, and submit their online application along with the required supporting documents.

There is an additional service offered in Phnom Penh City for applicants who are seriously ill, elderly, or disabled and cannot apply in person themselves. A family member or representative may apply on their behalf with the supporting documentation, such as a medical certificate or photographic evidence of the applicant’s condition, and the completed off-site service passport application form (a separate form attached to the notification, solely used when the applicant cannot visit the passport office themselves). The General Department of Identification will then review the application and, if approved, a team will be assigned to provide assistance at the applicant’s location to complete the process.

In addition, for added convenience, the passport office at Aeon 2 Sen Sok will now be open on the weekends for passport processing.

May

Commerce

This decision outlines the prerequisites and procedures for granting leniency to individuals implicated in an illicit horizontal agreement, as articulated in Article 7 of the Law on Competition. The Cambodia Competition Commission (“CCC”) may extend entitlements such as immunity or a reduction of fines and sanctions to those who voluntarily admit and submit evidence or information concerning their competition violations.

The highlighted below are the four types of leniencies and their eligibility criteria:

 

Type of Leniency	Eligibility
Type 1: Immunity from fines and sanctions	This type of leniency is when: The applicant is the first to submit evidentiary documents and information to the CCC; and There is sufficient basis for the CCC to: Initiate an examination when there is no pre-existing examination. Advance an examination when there is already a pre-existing examination. Those who exerted pressure on unwilling persons to engage in an unlawful horizontal agreement are not eligible for this leniency.
Type 2: Reduction in fines and immunity from sanctions	If an applicant does not fulfill the criteria under Type 1, they are still eligible for this type of leniency when: The applicant submits evidentiary documents and information to the CCC; and There is significant added value to the CCC examination per the CCC’s assessment. The potential reduction is determined in accordance with the sequential ranking of the applicants: The 1st applicant will be granted a reduction in fines of between 40-50% and immunity from sanctions. The 2nd applicant will be granted a reduction in fines of between 30-40% and immunity from sanctions. Any subsequent applicants will be granted a reduction in fines of up to 30% and immunity from sanctions. The CCC has discretion to determine the specific percentage for a reduction in fines by considering both the promptness of the application and added value.
Type 3: Immunity from fines and sanctions for natural persons who are current or former employees of those benefitting from immunity	Former and current employees of an applicant may also be entitled to the same immunity or reduction from fines and sanctions as the applicant if they cooperate with the CCC. However, the CCC has the discretion to determine whether or not to grant this leniency.
Type 4: Discretionary recommendation for reduction in fines and immunity from sanctions for current or former employees of those benefitting from a reduction in fines and immunity from sanctions

Requirements

• The applicant must submit the leniency application prior to the CCC rendering a decision on the preliminary examination by the investigating officer and submitting the case to the competent court.
• The applicant must submit a complete leniency application, with documents and information regarding their violation, along with an admission of their unlawful participation.
• The applicant, after receiving conditional leniency, must continue to maintain their compliance with the obligations until the CCC has rendered a decision on the preliminary examination and submits the case to the competent court.

The CCF serves as the implementing body and secretariat of the CCC, and is responsible for reviewing the application, evidentiary documents, and other assigned tasks.

Conditions
Upon receiving a complete leniency application, the CCC will grant conditional leniency and issue a notice to the applicant confirming:

• Conditional immunity or reduction from fines and sanctions.
• The conditions or requirements to be met by the applicant in order to obtain the final leniency.

Revocation and rejection
The CCC has the discretion to revoke conditional leniency if:

• The applicant fails to comply with any of the obligations of applicants with conditional leniency.
• The applicant acts in a dishonest manner or fails to cooperate promptly.

The CCC has the authority to reject the leniency application:

• If the alleged unlawful horizontal agreement falls outside the scope of the leniency scheme.
• If the applicant fails to rectify an incomplete application.
• For any other valid grounds as determined by the CCC.

April

Taxation

This instruction aims to clarify the qualification criteria for QIP enterprises to be eligible for the tax exemptions outlined in Article 24 of the Law on Taxation dated 16 May 2023 and the tax incentive measures specified under the framework of the 19^th Government-Private Sector Forum held on 13 November 2023.

The conditions are outlined below:

• The enterprise must have an independently audited financial report and maintain proper accounting records.
• Newly-registered QIP enterprises are exempt from tax in their first year without the obligation to submit an audited financial report to the GDT. However, they are required to submit their audited financial report to the GDT by the end of June each subsequent year.

Natural Resources

This decision aims to introduce a framework for utilization of sand resources. It supersedes Decision No. 20 dated 20 March 2015 on Policy Setting for Sand Exploitation.

Per the decision, the Ministry of Mines and Energy (“MME”) is fully responsible for issuing licenses and overseeing all types of sand resource exploitation. Mining licenses for the exploitation of sand resources are valid for a period of two years.

An environmental impact assessment will be conducted by the Ministry of Environment in collaboration with the MME, the Ministry of Economy and Finance, the Ministry of Public Works and Transport, and the Ministry of Water Resources and Meteorology on each proposed project. It will be conducted in accordance with environmental evaluation technical standards and will determine the maximum period of services and appropriate service fees.

The Ministry of Water Resources and Meteorology and the MME have classified sand resource areas as follows:

• Areas authorized for exploitation
• Areas requiring approval upon a special request
• Areas prohibited from exploitation

In response to illegal sand dredging, the MME has set up information-sharing mechanisms and a rapid response mechanism where individuals and other relevant authorities, including the Sand Resource Management Committee, has the ability to make report to MEE and take action according to the law.

Advertisement

This Prakas aims to further regulate certain business activities concerning advertising and sale promotions that are not covered by the existing Consumer Protection Law No. NS/RKM/1119/016 dated 12 November 2019.

The following are prohibited activities that are considered unfair practices in respect of rewards, and advertising and sales promotions:

• Failing to deliver rewards as promised
• Falsifying the winner’s identity
• Withholding necessary information
• Involving minors in rewards related to alcoholic or energy beverages that are contrary to the law
• Failing to use Khmer lettering on product advertisements
• Forcing or using individuals for advertising without their voluntary consent
• Providing misleading or false product advertisements

When conducting sales, clearance sales, special discounts, and lucky draws, businesses must disclose all relevant information in order to ensure a transparent and fair process for consumers. In addition, businesses must provide the relevant advertising documents to the General Department of Consumer Protection for the purpose of verifying the credibility of the product advertisements prior the publicize the advertisement.

Businesses violating the provisions of this regulation will be subject to the penalties set out in Articles 44 and 45 of the Consumer Protection Law.

March

Transportation

The law regulates the sustainable management and development of Cambodia’s vital waterway and port sectors. It governs civilian ships, crews, ports, ship owners, waterway infrastructure, and other related activities other than those under the Ministry of National Defense and the Ministry of Interior.

The law requires that all coastal and inland waterway vessels operating in Cambodia (both domestic and foreign-owned) register, except for small family-operated cargo vessels. The registration process entails obtaining a certificate of vessel registration, either permanent or temporary (maximum of one year).

Registered vessels must undergo regular maintenance and technical inspections to ensure they are navigated safely, remain seaworthy, and are certified by a professional ship inspector. Vessels registered by other countries may be eligible to register as Cambodian vessels if the thresholds are met, while Cambodian-registered vessels are permitted to operate worldwide and are not subject to import tax. Foreign-registered vessels docking in Cambodian ports are subject to the supervision of a foreign ship inspector designated by the Ministry of Public Works and Transport, which is responsible for the entire process, including management and control.

Taxation

This Prakas sets out the rules and procedures for the management of property tax collection from owners or rights holders of immovable property leases not registered under the self-assessment regime. It applies to all types of immovable property leases in Cambodia except for property leased by the government, diplomatic entities, international organizations, non-profit entities, and for those leases where the monthly total rental fee is less than KHR500,000. Additionally, the immovable property rental tax is standardized at a fixed rate of 10% of the total real estate rental income, while the assessment of tax is based on the monthly rental income and total rental revenue the owner received from the lessee.

Employment

The notification aims to clarify any misinterpretation of the Labor Law and other relevant regulations in relation to the indemnity payment to be made upon termination of the two types of employment contracts—fixed duration contracts (“FDCs”) and undetermined duration contracts (“UDCs”). The entitlements are as below (with the corresponding articles from the 1997 Labor Law and its amendment dated 26 June 2018 shown in parentheses:

1. Unilateral termination by the employer without cause

A. For FDCs:

• Unpaid wages (Article 116)
• Payment in lieu of the remaining unused annual leave (Articles 166 and 167)
• Severance pay of at least 5% of the wages paid during the length of the employment contract (Article 73)
• Damages in an amount at least equal to the remuneration the employee would have received until the termination of the contract (Article 73)

B. For UDCs:

• Unpaid wages (Article 116)
• Payment in lieu of the remaining unused annual leave (Articles 166 and 167)
• Compensation in lieu of prior notice if the employer does not provide prior notice in accordance with the Labor Law (Articles 75 and 77)
• Seniority payment for the period in which the employee is dismissed and any outstanding seniority payments owed to the employee (Article 89 new)
• Damages paid as a lump sum amount equal to the total amount of seniority payment received (including the amount as mentioned in the bullet point above) during the length of the employment contract (Article 91 new)

2. Termination by an employer because of serious misconduct by the employee

A. For FDCs:

• Unpaid wages (Article 116)
• Payment in lieu of the remaining unused annual leave (Articles 166 and 167).

B. For UDCs:

• Unpaid wages (Article 116)
• Payment in lieu of the remaining unused annual leave (Articles 166 and 167).

3. Termination because of the bankruptcy of the company

A. For FDCs:

• Unpaid wages (Article 116)
• Payment in lieu of the remaining unused annual leave (Articles 166 and 167)
• Severance pay of at least 5% of the wages paid during the length of the employment contract (Article 73)

B. For UDCs:

• Unpaid wages (Article 116)
• Payment in lieu of the remaining unused annual leave (Articles 166 and 167)
• Compensation in lieu of prior notice if the employer does not provide prior notice in accordance with the Labor Law (Articles 75 and 77)
• Seniority payment for the period in which the employee is dismissed and any outstanding seniority payments owed to the employee (Article 89 new)

In the case of bankruptcy, the dismissed employees are not entitled to damages since it does not negatively impact their reputation or dignity, which differs from the case of dismissal without cause, which could affect an employee’s reputation or dignity, and raise doubts about their productivity and ability among their fellow employees.

February

Mining, Taxation

This Inter-Ministerial Prakas sets out the formalities and procedures for payment of non-tax financial obligations for the export of mineral products to ensure a transparent and efficient collection of revenue and facilitate the cash flow of mineral product exporters. It applies to all approved exports of mineral products and enters into effect on 1 April 2024.

The key highlights are as follows:

1. Minimum deposit and deductible guarantee

Before exporting mineral products, exporters must pay:

• A minimum deposit of 5% of the royalties of the exported mineral products based on the approved quantity and quota for each exportation.
• A deductible guarantee of the non-tax financial obligations based on the actual export.

2. Timeline

• The minimum deposit and deductible guarantee must be paid upon receipt of a payment order from the MME.
• They must be paid at least five working days before the initial exportation of the mineral products.

3. Payment procedures

• The minimum deposit must be paid to the account at a partner commercial bank, whose owner is a representative of the MEF (Inter-Ministerial Debt Collection Working Group) and the MME.
• The deductible guarantee must be paid to the account at a partner commercial bank as set out in the payment order by specifying the type of mineral products, the type of revenue, and the date of payment. The account for this deductible guarantee must be approved by the MEF.

4. Submission after payment

• After paying the minimum deposit and deductible guarantee, exporters provide both the MME (General Department of Mineral Resources) and the MEF (Inter-Ministerial Debt Collection Working Group) a copy of the payment certificate in hard or soft copy through an official-in-charge or Telegram or any other appropriate means.
• Exporters must submit monthly reports to the MME, with a copy to the MEF (Inter-Ministerial Debt Collection Working Group) the first week of each month with the payment receipts and customs declarations of the previous month’s exports attached for verification.
• The MME and MEF will cooperate in setting up a mechanism for regular monitoring, recording, and reviewing of the non-tax financial obligations.

5. Seizure of the minimum deposit

Exporters will have their minimum deposit seized and deposited to the national budget in any of the following situations:

• Failing to pay the non-tax financial obligations and/or other obligations set forth in this Prakas and other relevant regulations in force.
• Being banned from exportation permanently by the MME for violation of the law.
• Having their approved quota for exportation revoked because of violation of the law.
• Having their mining license revoked.

The seizure of the minimum deposit does not exempt an exporter from the financial obligations and penalties for which the exporter is liable in accordance with the applicable laws and regulations.

January

Corporate Registration

The scope of the CamDX system (the online business registration system) has been expanded to now allow for not only registration but also modification of company information, with the launching of five new functions on 15 January 2024 as follows:

1. Modification of the address details of a registered office
2. Modification of a company’s articles of incorporation
3. Modification of a company’s business activities
4. Maintenance and retrieval of the company’s annual reports
5. Modification of a company’s bank account information

The process can be done completely online, with no need for an on-site presence.

Taxation

Pursuant to the decision of the Royal Government of Cambodia in the 19th Royal Government-Private Sector Forum, dated 13 November 2023, the Ministry of Economy and Finance (“MEF”) is continuing the exemptions and relief for the real estate sector as specified below.

Stamp duty tax relief on the transfer of ownership or possessory rights of immovable property until 31 December 2024

• Continuation of the stamp duty tax exemption on the transfer of ownership or possessory rights of all types of Borey housing valued at less than or equal to US$70,000.
• Deduction of US$70,000 from the stamp duty tax base for the purchase of all types of Borey housing.

To apply for the above relief, the conditions as stated in the Instruction Implementing the Royal Government’s Decision on Tax Facilitation Measures to Mitigate the Impacts on the Hotel, Guesthouse, and Real Estate Sectors No. 002 dated 25 February 2020 of the Ministry of Economy and Finance as follows must be met:

1. The first is that actual stamp duty tax must have been imposed during the relief period of 25 February 2020 to 31 December 2024 on the acquisition of ownership or possessory rights of immovable property.
2. The acquisition must be from housing development companies registered with the Ministry of Economy and Finance or the Provincial Department of Economy and Finance and that hold a real estate business license.
3. Housing development companies must create a sales-purchase contract based on market price. If necessary, the General Department of Taxation may inspect companies that reduce purchase prices, potentially impacting tax revenue. Taxpayers must include the original copy of the sales-purchase contract with their application for stamp duty tax on the transfer of ownership or possessory rights of immovable property.

Immovable property tax

Administrative penalties (additional tax and interest) for immovable property will be waived through 30 June 2024.Therefore owners or final beneficiaries that have immovable property (with or without an ownership certificate) that has not been registered and for which property tax has not been declared are allowed to register their property and pay the tax due starting from the year of occupancy or granting of final benefit during that time without having to pay any fines or penalties. From 1 July 2024 onwards, the tax will be implemented based on the laws and regulations in force, with the corresponding administrative penalties applied.

Unused land tax

Unused land tax is suspended until 31 December 2024, allowing owners, occupants, or beneficiaries to declare the tax without obligation. The Ministry of Economy and Finance will issue regulations minimizing conditions for tax exemption from 2025 onwards. Land that exceeds five hectares may be exempted from unused land tax in accordance with the following conditions:

• Agricultural land that is being cultivated, with the approval of the land assessment committee or subcommittee for unused-land
• Land serving the economic activities of natural or legal entities and registered with the tax administration
• Land with or without construction under a lease agreement
• Land owned by the Royal Government or governmental institutions
• Economic land concessions leased from the State
• Land leased to a legal entity for various economic activities
• Land located in special economic zones serving agricultural, industrial, and service activities
• Land registered as an asset of an enterprise in education, administration, or vocational training

All of the above exemptions, relief, and suspensions of taxes are NOT retroactive, including for administrative penalties (additional taxes and interest), that have already been paid.