Tax on property income in Laos

January 02, 2019

INDIVIDUAL TAXATION

Individuals are taxed on their income from sources in Laos. Married couples are taxed separately.

INCOME TAX

Income earned by nonresidents is generally subject to income tax at progressive rates.

INCOME TAX

TAXABLE INCOME, LAK (US$) TAX RATE
Up to 1 million (US$117) 0%
1 million - 3 million (US$351) 5% on band over US$117
3 million - 6 million (US$702) 10% on band over US$351
6 million - 12 million (US$1,404) 15% on band over US$702
12 million - 24 million (US$2,807) 20% on band over US$1,404
24 million - 40 million (US$4,678) 25% on band over US$2,807
Over 40 million (US$4,678) 28% on all income over US$4,678

RENTAL INCOME
Income from property is taxed separately from other income. Rental income from leases of houses, lands and other assets is taxed at a flat rate of 15%. 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.


CORPORATE TAXATION

PROFITS TAX

Profits tax is levied on the following income: (1) industry and handicraft businesses, (2) exploitation of natural resources, (3) import-export businesses, (4) wholesale and retail trade businesses, (5) income from general service provision, and (6) income of independent professionals.

Profits tax is levied at a flat rate of 35%. Income-generating activities are deductible when computing for the taxable income.

PROPERTY TAX

Land Tax

Land taxes vary depending on the location and the type of the land. The calculation is based on both the location and the size of the land, which is levied at annual rates per square meter. Land tax is payable in the first quarter of the relevant tax year.

CORPORATE TAXATION

PROFITS TAX

Profits tax is levied on the following income: (1) industry and handicraft businesses, (2) exploitation of natural resources, (3) import-export businesses, (4) wholesale and retail trade businesses, (5) income from general service provision, and (6) income of independent professionals.

Profits tax is levied at a flat rate of 24%. Income-generating activities are deductible when computing for the taxable income.

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