Property tax QR code system to enhance tax payment transparency

The Directorate General of Taxes of the Ministry of Economy and Finance is setting up a system of labeling tax-paid properties, aimed at strengthening the transparency of the payment of taxes in the real estate sector.

The code management system is designed to mark properties or individual houses that are already paying property tax, said its managing director Kong Vibol.

He said that all the properties developed by the investors and all the individual houses will be marked as payment of the property tax paid, which will be easy for them once these properties or individual houses are transferred to new owners.

He said investors will receive a tax QR code once they pay property tax. If not yet paid for, these individual properties and homes will not be permitted to enter into any transfer of ownership or buy-to-buy transactions.

“We will put in place a property management system when companies build Boreys and build houses if they don’t pay taxes and don’t have a tax QR code, it means they can’t transfer the property a times sold,” Vibol said at a recent workshop on tax payment procedures.

According to Vibol, the property management system would be launched in April or May.

The new system will create a level playing field in paying taxes in the property sector, Vibol said, citing that many construction companies in Borey have cheated on property tax.

“Some construction companies or apartments declare the construction tax for only 100 houses or villas, but when actually inspected, they build up to 150-200 houses, which makes the tax payment uneven, some paying accurately taxes and other taxes,” Vibol said.

A property management system (PMS) is a software application for hospitality accommodation and commercial and residential rental property operations.

Local governments sometimes use PMS to manage many properties under their care, where centralized electronic record keeping greatly increases efficiency.

The president of the Cambodian Association of Appraisers and Estate Agents, Chrek Soknim, welcomed the decision. “For data management, it is a must because it is easier to find houses with a good and accurate data property management system, as other countries already have,” Soknim said.

The General Tax Department will create QR codes for each registered house to reveal to customers who want to buy these houses from developers whether or not these properties are already paid for and registered or not, Vibol said.

Penny D. Jackson