The General Department of Taxation under the Ministry of Economy and Finance has announced the instruction No. 141 on 2 Januady 2026, that the implementation of the capital gains tax on immoveable property will be postponed until 1 January 2027. The decision was approved by Cambodian Prime Minister Hun Manet on 24 December 2025.
In simple terms, this means that people who sell land or houses will not have to pay capital gains tax yet. The tax will only apply to profits made from selling or transferring real estate starting from 2027 onwards.
For some individuals, buying and selling real estate is indeed a source of income or investment. However, for many Cambodian families, selling land or a house is not primarily about making profit. More often, it is a decision driven by necessity, such as paying off accumulated debts, covering medical expenses, coping with financial pressure, or relocating for work or family reasons. In these cases, property functions less as a speculative asset and more as a last line of financial security. By postponing the real estate capital gains tax, the government appears to recognise this distinction and acknowledge that a significant portion of property transactions today reflect economic stress rather than wealth accumulation. The decision suggests an understanding that this is not the right moment to impose additional financial burdens on households that depend on property to manage basic survival needs.
The government’s decision shows that tax reform is still moving forward, but not in a rushed or sudden way. The capital gains tax on immoveabl property has not been cancelled; it has only been delayed until 2027. This maintains policy credibility and signals long-term planning. The government is showing that it remains committed to building a fairer and broader tax base, even if the timing is adjusted to match economic conditions. The fact that this decision was approved at the highest level reflects a pragmatic approach to economic management. Rather than forcing a one-size-fits-all policy, the leadership is allowing flexibility based on current conditions. This signals a governing style that prioritises stability, social impact, and careful sequencing, reforming the system while avoiding unnecessary disruption to people’s daily lives.
While immovable property is delayed, the government will still apply capital gains tax from 1 January 2026 on 5 types of assets such as lease, investment asset, goodwill, intellectual property, and foreign currencies. These activities are more common among businesses, investors, and higher-income groups, and are easier to track and regulate. This selective approach shows that the government is choosing to start where enforcement is more practical, rather than placing immediate pressure on ordinary homeowners.
All in all, the government is not avoiding reform, but it is choosing the right timing, protecting households first, taxing more liquid assets earlier, and preparing the system for a smoother transition in the years ahead.