Tax and Duty Incentives
II. Regular Customs and Tax Systems in the Lao PDR
1. Regular Import duty rates are between 3% - 40%
2. Indirect taxes include
- Business turnover tax between 5%- 10%
- Excise tax between 5% - 90%
3. Direct taxes include
+ Corporate Profit Tax:
- Existing law on tax: Foreign (20%) and Domestic (35%)
- As of November 2011, the law on tax is in the course of revising to unify the general profit tax for foreign and domestic investors. The new tax rate is speculated in the range of 24%-28%
+ Minimum tax at the rate of 0.1% of total revenue
+ Personal income tax between 0%-25% (progressive rate) after revising the law on tax.
+ Fees and service charges
III. Regulation on Importation
Under the new investment law, the master plan of the importation has to be submitted at the Custom Department, Ministry of Finance directly.
- Investors must submit their annual importation plans in accordance with the Custom Department standard forms at the Department of Custom (DOC), Ministry of Finance. DOC will consider approving and issuing a certificate within 20 business days from the date of receiving the request*.
- The approved annual importation plans will be transmitted to officials at the border where the importation will take place to monitor and deduct the balance based on actual importation.
- Approved annual importation plans can be modified once.
- Additional importation not included in the annual importation plans such as utilities or emergency spare parts to replace the old and broken ones shall be consulted or submitted to the Ministry of Finance (Custom Department) directly.
Approval Producer for the annual importation plan
* Timing for approval depends on the investment activities and the type of goods to be imported. But normally, it will take 20 working days for such approval. For greater detail on this, please consult with the Custom Department, Ministry of Finance.