- VAT/GST rate 7 10
- Brackets updated
Full refresh — VAT 10%, WHT and NSSF fields, annual PIT brackets, filing March 31, sources and prose (https://taxsummaries.pwc.com/lao-pdr) Source
Top income tax
25.0%
Worldwide system
Corporate tax
20.0%
VAT
10.0%
standard rate
Tax residency
183 days
12 tax treaties
Laos tax profile
Data year: 2026
- Tax system
- Worldwide Income Tax Law No. 88/NA (published 19 June 2026, effective 3 July 2026) governs profit tax on businesses and personal income tax on salaries and other remuneration. Lao citizens are taxed on worldwide income; foreign individuals generally pay PIT on compensation for work performed in Laos and on other Laos-source income. Companies incorporated in Laos are taxed on worldwide profits; foreign enterprises pay profit tax on Laos-source business income. The standard profit tax rate is 20% on net profits (down from 24% under the prior law), with higher sectoral rates for minerals, casinos, alcohol and tobacco, and preferential rates for listed companies and certain innovation or clean-energy activities.
- Top PIT rate
- 25.0%
- Corporate tax rate
- 20.0%
- VAT
- 10.0%
- Capital gains tax
- 2.0% There is no separate capital-gains tax. Share sales are taxed at 2% of the selling price (exemptions may apply for listed securities on the Lao Securities Exchange). Real property transfers are taxed at 2% of the selling price, or 1% for agricultural land. Dividends are taxed at 10%; rental income at 10%; royalties on intellectual property at 5%. Bank deposit interest and bond interest are generally exempt from PIT.
- Social security (employee)
- 5.5%
- Social security (employer)
- 6.0%
- Social security cap (annual)
- LAK 54,000,000
- Dividend withholding
- 10.0%
- Interest withholding
- 10.0%
- Royalty withholding
- 5.0%
- Treaty count
- 12
Income tax brackets
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| LAK 0 | LAK 30,000,000 | 0.0% |
| LAK 30,000,000 | LAK 60,000,000 | 5.0% |
| LAK 60,000,000 | LAK 180,000,000 | 10.0% |
| LAK 180,000,000 | LAK 300,000,000 | 15.0% |
| LAK 300,000,000 | LAK 780,000,000 | 20.0% |
| LAK 780,000,000 | and above | 25.0% |
Tax residency
- Days threshold
- 183 days
- Residency rules
- Under the amended law, a resident is a person with a permanent residence, who lives, earns a living, or conducts business in Laos. Foreign employees receiving compensation for work in Laos who are present for periods aggregating 183 days or more are subject to PIT (treaty relief may apply). Foreigners paid abroad but living in Laos more than 180 days in a tax year also owe income tax unless a separate government agreement applies. Non-residents are persons who earn income or do business in Laos without residing there or maintaining a permanent address or place of business.
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- March 31
Sources
- President Ordinance on VAT (Amendment) No. 003/POL (accessed Oct 9, 2026) Standard VAT rate 10% from March 2024 ordinance
- PwC Lao PDR — overview (accessed Oct 9, 2026) Headline PIT, CIT, VAT, WHT, capital gains, filing dates
- PwC Lao PDR — taxes on personal income (accessed Oct 9, 2026) Annual and monthly PIT tables; Income Tax Law No. 88/NA effective 3 July 2026
- PwC Lao PDR — withholding taxes (accessed Oct 9, 2026) Domestic WHT rates and treaty partner list
- PwC Lao PDR — other taxes (accessed Oct 9, 2026) VAT, social security 5.5%/6%, NSSF calculation base LAK 4.5 million per month
- Deloitte Laos Tax Highlights 2025 (accessed Oct 9, 2026) Cross-check CIT 20%, VAT 10%, 183-day residency for compensation