INDIVIDUAL TAXATION
Individuals are taxed on their income from sources in Laos. Married couples are taxed separately.
Individuals pay either income tax or profits tax, depending on the classification of the source of income.
INCOME TAX
Income tax is levied on the following income:
- Income from salary, general labor wages, bonuses, allowances, and other benefits received in cash or in kind
- Dividends, profits from the sale of shares, interest income, guarantee fees
- Income from immovable property (lease of land, houses, and other property)
- Capital gains realized from selling real property
- Royalty income from patents, copyright, trademarks or other intellectual property
Income tax is levied at progressive rates.
INCOME TAX |
| TAXABLE INCOME, LAK (US$) |
TAX RATE
|
| Up to 1,500,000 (US$181) |
5%
|
| 1,500,000 – 4,000,000 (US$482) |
10%
|
| 4,000,000 – 8,000,000 (US$964) |
15%
|
| 8,000,000 – 15,000,000 (US$1,807) |
20%
|
| Over 15,000,000 (US$1,807) |
25%
|
For individuals whose monthly income does not exceed LAK1,500,000 (US$181), a different set of tax rates apply.
INCOME TAX (FOR INCOME
LESS
THAN LAK1.5 MILLION) |
| TAXABLE INCOME, LAK (US$) |
TAX RATE
|
| Up to 300,000 (US$36) |
nil
|
| 300,000 – 1,500,000 (US$181) |
5%
|
RENTAL INCOME
Income tax is levied on rental income. Income-generating expenses are deductible when computing for the taxable income.
CAPITAL GAINS
Income tax is levied on capital gains derived from selling real property.
PROFITS TAX
Profits tax is levied on the following income:
- Agricultural and forestry production businesses
- Industry and handicraft businesses
- Exploitation of natural resources
- Import-export, wholesale and retail trade
- General services such as logging, mining, transportation, postal services, telecommunications
- Construction, repair, land development for the sale of the right to use,
- Bidding and construction of various projects sponsored by state funds, aid or foreign loan
- Tourism, food and beverage operations
- Casino and lottery activities
- Artistic activities, sports, agency or brokerage activities
Profits tax is levied at progressive rates. Income-generating activities are deductible when computing for the taxable income.
PROFITS TAX |
| TAXABLE INCOME, LAK (US$) |
TAX RATE
|
| Up to 2,400,000 (US$289) |
nil
|
| 2,400,000 – 5,000,000 (US$602) |
10%
|
| 5,000,000 – 10,000,000 (US$1,205) |
15%
|
| 10,000,000 – 30,000,000 (US$3,614) |
20%
|
| 30,000,000 – 60,000,000 (US$7,227) |
30%
|
| Over 60,000,000 (US$7,227) |
35%
|
PROPERTY TAX
There are no property taxes in Laos.
Laos - more data and information
Add your comment