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Customs-Tax

1. Structure of Tax System of Lao PDR

2. Tax payers consists of 3 types:

1. As legal entity
2. As person
3. As organization

3. Holding of accounting comprises of 03 types:

1. Expanded accounting (annual income from2,4 billion and above);

2. Ordinary accounting (annual income from200million to 2,4 billion);

3. Fundamental accounting (annual income from200 million and below);

3. Updating the rate of turnover tax, profit tax and salary income tax.

  • Update of turnover tax: Cancel the use of 5% rate of turnover tax, and then use one single 10% rate.
  • Profit tax rate (Article29)

-      Profit tax rate of maximum 24% is used for domestic and foreign legal entity implementing in line with the updated Investment Promotion Law.

-      Profit tax rate of 26% is used for legal entity(tobacco products), 2% of this will be handed in the tobacco control fund as per Article 46 of Tobacco Control Law.

-      Profit tax rate used for individual enterprises and self-employed persons shall be collected as exponential rate from 0% to 24% as per the below table:

Level

Profit base of each level (Kip)

Calculation base

(Kip)

Rate

Tax of each level (Kip)

Total tax (Kip)

1

From 3,600,000 Kip and below

3,600,000

0%

0 Kip

0 Kip

2

3,600,001-8,000,000

4,400,000

5%

220,000

220,000

3

8,000,001-15,000,000

7,000,000

10%

700,000

920,000

4

5,000,001-25,000,000

10,000,000

15%

1,500,000

2,420,000

5

25,000,001-40,000,000

15,000,000

20%

3,000,000

5,420,000

6

from 40,000,001 Kip and above

...............

24%

................

...............

 

  • Rate of salary income tax.

1. Salary income,general wages, additional hour payment, overtime payment, positional payment, functional payment,annual bonus, directors fees of the executive councilor board of directors and other benefits received in the form of money or objects must be paid tax in unanimous exponential rate from 0 % to 24 % as per the below table:

Level

Salary base of each level (Kip)

Calculation base (Kip)

Rate

Tax of each level (Kip)

Total tax (Kip)

1

From 1,000,000 Kip and below

1,000,000

0%

0 Kip

0 Kip

2

1,000,001-3,000,000

2,000,000

5%

100,000

100,000

3

3,000,001-6,000,000

3,000,000

10%

300,000

400,000

4

6,000,001-12,000,000

6,000,000

12%

720,000

1,120,000

5

12,000,001-24,000,000

12,000,000

15%

1,800,000

2,920,000

6

24,000,001-40,000,000

16,000,000

20%

3,200,000

6,120,000

7

From 40,000,001 Kip and above

...............

24%

 

.............

 

 

 

 

 

 

 

 

 

 

 

 

 

2. Income from dividend or profit dividend or other benefits to shareholders or stockholders, profit from stock trading of persons, legal entity: 10%;

3. Income from loan interest, income from brokerage or agent of person, legal entity, income from contract implemented guaranty or other bindings: 10%;

4. Income from organizing activities that are not businesses of governmental organizations, Lao Front for National Construction, Mass Organization and social organization:10%;

5. Income from prizes, lottery money prizes or materials whose value is above 1,000,000 Kip: 10%;

6. Income from rental: land, house, building, vehicle, machinery or other properties: 10%;

7. Income from intellectual properties: patent, copy right, trademark or other rights of person or legal entity: 5%;

8. Income from trading, transferring land-use rights, buildings or real estate apart from being stipulated in Article 45 Clause 18 of Tax Law: 5%;

 

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Last update: 22 September 2017.