Laos Tax Overview

Lao PDR tax system at a glance

Lao PDR taxes income, profits and consumption under a codified Tax Law framework administered by the Ministry of Finance. The figures below summarise the headline parameters; each is an unverified draft pending review by a licensed Lao accountant.

• Standard tax year — Calendar year (1 January to 31 December) (Law on Income Tax (Law No. 67/NA, 2019))
• National currency — Lao kip (LAK) (Law on Income Tax (Law No. 67/NA, 2019))
• Tax authority — Tax Department, Ministry of Finance (Lao PDR) (Tax Administration Law (Lao PDR))
• Social security administrator — Lao Social Security Organisation (LSSO / NSSFO) (Law on Social Security (Lao PDR))
• Individual residence test — Present in Lao PDR 183 days or more in a 12-month period (Law on Income Tax (Law No. 67/NA, 2019))
• Corporate tax basis — Worldwide income for domestic companies; territorial (Lao-source) for foreign companies (Law on Income Tax (Law No. 67/NA, 2019))
• Top personal income tax rate (salary) — 25% percent (Law on Income Tax (Law No. 67/NA, 2019))
• Standard profit tax rate — 20% percent (Law on Income Tax (Law No. 67/NA, 2019) — https://taxsummaries.pwc.com/lao-pdr/corporate/taxes-on-corporate-income)
• Value-added tax (VAT) — Yes — VAT applies at a standard rate of 10% percent (Law on Value-Added Tax (Lao PDR))
• 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 deadline — By 31 March following a 31 December year-end (Accounting Law (Lao PDR))
• Provincial / local income tax — None — there are no provincial or local income taxes (Law on Income Tax (Law No. 67/NA, 2019))