2018老挝税务简报（英文版）

报告摘要

Summary of International Tax Highlights in Laos (2018)

Core Content Overview

This summary outlines the key aspects of the tax system in Laos, including corporate and personal taxation, value-added tax (VAT), and compliance requirements. It also touches on international tax treaties and the role of tax authorities.

Investment Basics

Currency: Lao Kip (LAK)
Foreign Exchange Control:
- Foreign enterprises can deposit both LAK and foreign currencies in their bank accounts.
- Domestic payments in foreign currencies are restricted.
- Exchanges from LAK to foreign currencies are limited.
Accounting Principles:
- Lao Accounting System (Lao GAAP) is used.
- Some domestic listed companies may use IFRS.
- Annual financial statements are required.
Business Entities:
- Public/private limited companies, partnerships, sole proprietorships, and foreign company branches are the main types.

Corporate Taxation

Taxation Basis

No general definition of residence for tax purposes.
Entities incorporated in Laos are taxed on worldwide income.
Foreign entities operating in Laos are taxed on income derived in Laos.
Taxation is generally on a worldwide basis, with no territorial basis provisions.

Taxable Income

Profit Tax:
- Imposed on all business profits.
- Calculated as net income plus non-deductible expenses, less allowable deductions.
- Mandatory profit tax applies to non-compliant taxpayers.
Tax Rates:
- Standard rate: 24%
- Temporary 5% reduction for companies registered on the stock market for the first four years.
- 26% for entities producing, importing, and supplying tobacco.
- Lump-sum tax (3%–7%) for small-sized businesses not registered for VAT, with exemption for income below LAK 12 million.
Withholding Taxes:
- Dividends: 10% withholding tax, potentially reduced under tax treaties.
- Interest: 10% withholding tax, with exemptions for deposits, government bonds, and debentures.
- Royalties: 5% withholding tax, potentially reduced under tax treaties.
- Technical Service Fees: 1.2%–6% withholding tax based on service type.
- Other Payments: Withholding tax applies to payments to foreign entities for income generated in Laos.

Special Tax Provisions

Capital Gains:
- Income from the sale of shares (non-listed) is taxed at 10% on the difference between purchase and selling price, or 2% on selling price if evidence is lacking.
- Income from land and land use rights is taxed at 5% on the difference, or 2% on the selling price.
Losses:
- Can be carried forward for three years with tax authority approval.
- Carryback is not permitted.
Other Taxes:
- Payroll Tax: Withheld by employers and paid by the 15th of the following month.
- Real Property Tax: Varies by land value.
- Environmental Tax: Applied to activities that harm the environment.
- Excise Tax: Imposed on certain products at rates from 5% to 90%.

Compliance for Corporations

Tax Year: Calendar year, unless business activities have ceased or been transferred.
Filing Requirements:
- Financial statements and tax returns due by 1 March of the following year.
- Quarterly advance payments of profit tax.
- Remaining tax due by 10 January of the following year.
Penalties:
- 0.1% per day fine for late tax payment, capped at the tax shortfall.
- 20%–60% fine for underreporting or incorrect/incomplete tax invoices.
- 30%–100% fine for non-compliance with tax returns or inspections.

Personal Taxation

Taxation Basis:
- No territorial or worldwide basis specified.
- Residents are taxed on worldwide income unless covered by tax treaties.
Filing Status:
- No joint filing permitted.
Taxable Income:
- Employment Income: Subject to progressive tax rates from 0% to 24%.
- Self-employment Income: Subject to profit tax.
- Other income (dividends, interest, capital gains, etc.) is subject to income tax.
Capital Gains:
- Non-listed shares: 10% on the difference, or 2% on the selling price.
- Land and land use rights: 5% on the difference, or 2% on the selling price.
Deductions and Allowances:
- None specified.
Other Taxes:
- Social Security: Employees contribute 5.5%, capped at LAK 247,500. Employers contribute 6%, capped at LAK 270,000.
- Environmental Tax: Applies to individuals and entities causing environmental harm.

Compliance for Individuals

Tax Year: Calendar year.
Filing and Payment:
- Employers withhold and remit employment tax monthly.
- Other income is subject to withholding tax within 10 days of the transaction.
Penalties:
- 0.1% per day fine for late tax payment.
- 20%–60% fine for underpayment of salary tax found during assessments.

Value Added Tax (VAT)

Taxable Transactions:
- Sales of goods and services in Laos.
- Imports.
Tax Rates:
- Standard rate: 10%
- Zero rate for exports.
- 10% VAT on service fees paid to non-resident companies.
Registration:
- Required for entities with annual turnover of at least LAK 400 million.
Filing and Payment:
- VAT due monthly by the 15th day of the following month.
- Imports require full VAT payment at the time of customs duty payment.

Tax Law and International Agreements

Source of Tax Law:
- Tax Law 2015 and Law on Value Added Tax 2014
Tax Treaties:
- Laos has signed 11 tax treaties with countries including Brunei, China, Russia, and Vietnam.
Tax Authorities:
- Tax Department of the Ministry of Finance

Contact and Disclaimer

Contact:
- Anthony Visate Loh (aloh@deloitte.com)
- Maneerat Usahacharoenporn (musahacharoenporn@deloitte.com)
Disclaimer:
- This document contains general information only.
- Deloitte does not provide professional advice or services through this communication.
- Readers should consult qualified professionals before making decisions.