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Paying Taxes in

Lao PDR

Below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes and complying with postfiling procedures.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed on June 1, 2016 covering for the Paying Taxes indicator calendar year 2015 (January 1, 2015 – December 31, 2015).

Compare Lao PDR to 189 other economies.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Corporate income tax 4 138 24% taxable profit 15.76
Social Security contributions 12 42 6% gross salaries 6.77
Property transfer tax 1 5% sale price 3.03
Property transfer fee (stamp duty) 1 1% sale price 0.61
Property tax 1 LAK 80 to 180 per square meter 0.02
Vehicle tax 1 LAK 40,000 fixed fee depending on type of vehicle 0.01
Tax on insurance contracts 1 immaterial amount - about LAK 20,000 plus LAK 2,000 per page insurance premium 0.00 small amount
Stamp duty on general contracts 1 immaterial amount - about LAK 20,000 plus LAK 2,000 per page per contract 0.00 small amount
Fuel tax 1 included in the price of fuel 0.00 small amount
Employee paid - Social security contributions 0 jointly 4.5% gross salaries 0.00 withheld
Business turnover tax on sales (VAT) 12 182 10% value added 0.00 not included
Totals: 35 362 26.2
  • Answer
    Profit tax (% of profit) 15.8
    Labor tax and contributions (% of profit) 6.8
    Other taxes (% of profit) 3.7
    Answer Score
    Postfiling index (0-100) 29.8
    VAT refunds 0.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? No
    Restrictions on VAT refund process Restricted to international traders and others
    Likelihood of VAT audit N/A
    Time to comply with VAT refund (hours) N/A 0.0
    Time to obtain a VAT refund (weeks) N/A 0.0
    Corporate income tax audits 78.0
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Likely
    Time to comply with a corporate income tax audit (hours) 13.5 78.0
    Time to complete a corporate income tax audit (weeks) 18.9 41.1
    Administrative appeal process
    First level administrative appeal authority Tax Administration Office of the District
    Is the appeal authority independent? same auditor
    Are appeal guidelines accessible to the public? No
    Source of appeal guidelines in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.