In addition to business registration and licensing, entrepreneurs need to register for taxation purpose. Knowledge about the tax system including tax law and regulations is important so that an enterprise can meet its obligations accordingly.

Highlights of tax law and regulations

      The tax law defines tax system of all economic sectors engaged by mass organization, social organization, Lao citizen, migrants and foreigners and non-citizenship. Guidelines of how to implement tax law are found in its implementing regulations.

Tax law

      Consumers of products and services; business operators; and any person who earn incomes in Lao PDR have tax payment obligation. Different types of taxes apply to a business: direct tax refers to income tax, profit tax, minimum tax and tax administrative fees; and indirect tax refers to business tax and consuming tax. To make it convenient and to comply with decentralisation policy of the government, recently tax payment can be done through the District Customs Office where your business is located especially the business with less than 200 million Kip. However, import-export type of business and business joint ventures are still required to pay tax at provincial level where the business license is issued.

Tax registration and procedures

     Tax registration will be preceded after obtaining business license. The entrepreneur can contact directly, where it received the business license, for application forms with pre-stamps to get taxation license. The tax license will be renewed every year if the enterprise fully meets tax payment obligations: monthly business tax, income tax; and quaterly profit tax. Click here to get list of forms needed and expenses of tax registration .