Laos legal and accounting and tax considerations in 2024

tax regulations in Laos

  1. The standard corporate tax rate levied on all net profits derived from Laos is 20%, but SMEs i) benefit from reduced rates of up to 3% or ii) are tax-exempt, if their earnings are below US$1,500 per year. Tax returns are filed quarterly on 10th April, 10th July, 10th October and the final payment due on 10th March the subsequent year;
  2. In accordance with Laos regulations, all Laos companies must register for corporate tax and VAT at the Tax Department of the Laos Ministry of Finance. Healy Consultants will be happy to assist you with tax and VAT registration for a one time fee of US$950;
  3. Branches pay a corporate tax rate of 20%;
  4. The standard VAT rate levied on provision of goods and services in Laos is 10%. VAT is not levied on exports;
  5. There is no capital gains tax in Laos. Income earned in Laos through the sales of shares is subject to the standard corporate tax rate of 20%;
  6. Withholding tax levied on interest and dividends paid to foreign legal entities and individuals, at a rate of 10%. Royalties however benefit from a reduced withholding tax rate of 5%;
  7. Losses can be carried forward for up to three years;
  8. Tax on income from rent of immovable property is levied at the rate of 15%;
  9. Employers must submit to the relevant authorities social security contributions on behalf of their employees at 5%;
  10. Bank of Laos determines foreign exchange controls and foreign investors can freely repatriate profits after tax to other countries after certain conditions are met;
  11. Laos has signed double tax avoidance treaties with 8 countries including Brunei, China, both Koreas (North and South), Malaysia, Thailand and Vietnam;
  12. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
  13. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

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Contact us

For additional information on our accounting and tax services in Laos, please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon
Bank-of-Lao-PDR Lao-National-Chamber-of-Commerce-and-Industry Ministry-of-Planning-and-Investment