Taxes in Laos

Laos combines direct taxes, such as personal income tax and profit tax, with indirect taxes, such as value-added tax, excise tax and import-related charges. The main framework includes the Law on Tax Administration No. 66/NA (2019), the VAT Law No. 60/NA (2024) and Ordinance No. 003/POL (2024), the Excise Tax Law No. 68/NA (2019), and the Income Tax Law No. 88/NA (2025), which took effect on 1 July 2026 and replaced the earlier income-tax law and relevant amendments. The Lao Official Gazette is the authoritative source; English translations in the Lao Tax Portal are generally unofficial. The Ministry of Finance supervises the Tax Department. Administration operates at central, provincial or Vientiane Capital, district and village levels, with no evidenced local rate variation in the available nationwide research. Individuals, companies, organisations and foreigners with Lao income or business activity generally receive one Taxpayer Identification Number, or TIN. Enterprise registration can create a TIN automatically through TaxRIS, but the taxpayer must complete the tax data within 90 days. The TIN appears on tax returns, invoices, payment records, customs declarations and financial reports. Personal income tax applies to Lao residents and non-residents. Under the current progressive monthly schedule, income up to LAK 2,500,000 is taxed at 0%; income above LAK 2,500,000 up to LAK 5,000,000 at 5%; above LAK 5,000,000 up to LAK 15,000,000 at 10%; above LAK 15,000,000 up to LAK 25,000,000 at 15%; above LAK 25,000,000 up to LAK 65,000,000 at 20%; and income above LAK 65,000,000 at 25%. Employers normally withhold salary tax and declare and pay it by the 15th day of the following month. Overtime treatment includes an exemption reported under the new law for monthly salaries of up to LAK 3,000,000. Dividends, interest, rent, intellectual-property income, prizes and land or property transfers can follow separate withholding or declaration rules. The standard profit-tax rate is 20% of net profit. A micro-enterprise rate of 5% applies to net profit where the business qualifies, while a listed company can receive a 10% rate for ten years from listing. Special rates include 22% for alcohol, 30% for casinos, 35% for mining concessionaires and mineral exporters, and a 15% domestic minimum tax for qualifying multinational enterprise groups. Businesses need accounting records and evidence for deductible costs. Related-party transactions should follow an arm's-length approach, and a permanent establishment is generally assessed as if it were an independent business. VAT is generally 10% on taxable imports, domestic supplies, ordinary services, minerals and electricity. Exports are generally taxed at 0%, while statutory exemptions also apply. Taxable businesses issue tax invoices and may use formal input-tax deduction or refund procedures. In the e-commerce context, the research identifies a VAT registration threshold of at least LAK 400,000,000 in turnover. Foreign digital providers supplying Lao consumers have separate registration and collection duties, generally charge output VAT without input-tax deduction, and use the procedures under Ministry of Finance instructions No. 0558/2024 and No. 0541/2022. Excise tax applies to specified products and services, including petroleum, vehicles and motorcycles, parts, alcohol, tobacco and electronic cigarettes, perfume and cosmetics, as well as entertainment, karaoke, telephone, television, internet and golf services. Rates depend on the product or service, so the applicable schedule under Presidential Ordinance No. 003/POL should be checked. Environmental tax also functions as a charge on certain environmentally or health-harmful imports or uses. Land, property and transfer taxes or fees exist separately, with amounts depending on the transaction, instrument and applicable rules. A normal compliance path runs from registration and TIN or TaxRIS setup to bookkeeping, tax invoices, periodic returns, payment and possible audit or assessment. VAT, excise tax and salary tax are generally declared and paid monthly by the 15th of the following month under published Ministry of Finance instructions. Under the new income-tax law, profit-tax provisional payments are reported twice a year, on 20 July and 31 December. The annual reconciliation and financial-report deadline under the new implementation should be confirmed against current Lao official or Ministry of Finance guidance. Ordinary e-commerce taxpayers generally report by the 20th of the following month; occasional e-commerce activity is reported within 15 working days; foreign digital platforms generally report twice a year, before 20 July and 20 January. TaxRIS, Easy Tax, SMART Tax, ASYCUDA and LNSW support different registration, filing, payment, customs and trade processes. The Tax Department can audit and assess tax and can impose warnings, fines or enforcement measures, including suspension of a business, platform or licence in relevant cases. Keep written contracts, invoices, accounting records, bank evidence and transaction records. The law provides review and appeal rights, but current fine amounts and exact appeal deadlines should be checked in the applicable notice or decision. Lao-source income of non-residents can trigger Lao tax and payer withholding duties. Secondary current summaries report withholding rates of 10% for dividends, interest, services or consultancy and rent, 5% for royalties, and 2% for transfers of unlisted shares; the exact treatment should be confirmed for the payment and contract. Foreign supplier services can involve a deemed-profit profit-tax element and 10% VAT, with the contractual gross or net basis requiring careful review. Double-tax treaty relief may be available but is not automatic; a residence certificate and an application with supporting documents are generally needed. Investment incentives can provide project-, sector- or zone-dependent profit-tax holidays or reductions and relief for qualifying import duty or VAT. An incentive is safer to claim only when the approval, investment or concession documents expressly support it. Import VAT, excise tax and profit tax can arise at the border, while customs duty is a separate but related charge. Implementation of the 2025 income-tax law and the 2024 VAT law remains an area where current Lao Official Gazette and Ministry of Finance guidance should take priority, including draft VAT implementation guidance consulted on 24 August 2026.