Laos Corporate Income Tax

Profit tax rates

Lao PDR levies profit tax (corporate income tax) at a flat standard rate with several sector-specific rates. The standard rate was reduced from 24% to 20%. Figures below are an unverified draft.

• Standard profit tax rate — 20% percent (Law on Income Tax (Law No. 67/NA, 2019))
• Companies listed on the Lao Securities Exchange — 13% for the first 4 years from listing percent (Law on Income Tax (Law No. 67/NA, 2019))
• Producers/importers of tobacco products — 22% (includes a 2% contribution to the cigarette control fund) percent (Law on Income Tax (Law No. 67/NA, 2019))
• Mineral / mining industry under concession — 35% percent ((approx — confirm; concession agreements may vary)) (Law on Income Tax (Law No. 67/NA, 2019))
• Education / training & research centres — 5% percent (Law on Income Tax (Law No. 67/NA, 2019))
• Green / environmentally-friendly technology companies — 7% percent ((approx — confirm)) (Law on Income Tax (Law No. 67/NA, 2019))

Lump-sum tax for micro/SME businesses

Small businesses that do not keep full Lao accounting books pay a lump-sum (presumptive) tax on turnover instead of standard profit tax.

• Annual turnover of LAK 50 million or less — 0% (exempt from lump-sum tax) percent (Law on Income Tax (Law No. 67/NA, 2019))
• Lump-sum tax — manufacturing/agriculture (turnover LAK 50m–400m) — 1% of turnover percent (Law on Income Tax (Law No. 67/NA, 2019))
• Lump-sum tax — commerce (turnover LAK 50m–400m) — 2% of turnover percent (Law on Income Tax (Law No. 67/NA, 2019))
• Lump-sum tax — services (turnover LAK 50m–400m) — 3% of turnover percent (Law on Income Tax (Law No. 67/NA, 2019))

Withholding tax and filing

Lao PDR applies withholding/income tax to dividends, interest and royalties, and sets annual return and instalment deadlines.

• Withholding on dividends — 10% (domestic-law rate; treaties may reduce, e.g. 5% for ≥10% holdings) percent (Law on Income Tax (Law No. 67/NA, 2019))
• Withholding on interest — 10% percent (Law on Income Tax (Law No. 67/NA, 2019))
• Withholding on royalties (IP) — 5% percent (Law on Income Tax (Law No. 67/NA, 2019))
• Annual profit tax return deadline — By 20 January of the year following the tax year ((approx — confirm)) (Tax Administration Law (Lao PDR))
• Annual financial statement filing — By 31 March following a 31 December year-end (Accounting Law (Lao PDR))
• Tax base — Domestic companies taxed on worldwide income; foreign companies on Lao-source income (Law on Income Tax (Law No. 67/NA, 2019))