Laos Tax Rates
Laos operates a progressive income tax system with rates from 0% to 25%, administered by the Tax Department under the Ministry of Finance. The standard corporate tax rate is 20%, and Laos levies a 10% VAT. The country offers investment incentives through its Investment Promotion Law, particularly for sectors such as agriculture, manufacturing, and infrastructure development.
Top Income Tax Rate
25%
Corporate Tax Rate
20%
VAT / Sales Tax
10%
Capital Gains Tax
2%
Detailed Tax Information
Income Tax Brackets
Laos' personal income tax applies progressive monthly rates from 0% to 25%. Residents are taxed on worldwide income while non-residents are taxed on Lao-sourced income. The monthly exemption threshold is LAK 1.3 million.
| Income Range | Tax Rate |
|---|---|
| ₭0 – ₭1.3M | 0% |
| ₭1.3M – ₭5.0M | 5% |
| ₭5.0M – ₭15.0M | 10% |
| ₭15.0M – ₭25.0M | 15% |
| ₭25.0M – ₭65.0M | 20% |
| ₭65.0M+ | 25% |
Corporate Tax
Laos' standard corporate profit tax rate is 20%. Tobacco, mining, and certain resource extraction companies may face higher rates. Investment incentives provide tax holidays and reduced rates for promoted activities and special economic zones.
Standard Rate
20%
Capital Gains Tax
Capital gains on the transfer of immovable property are subject to a 2% tax on the transfer value in Laos. Other capital gains are generally included in taxable income and taxed at standard rates.
Rate
2%
VAT / Sales Tax
Laos' VAT is levied at 10% on the supply of goods and services. Exempt supplies include basic agricultural products, education, healthcare, and financial services. Businesses with annual turnover above LAK 400 million must register for VAT.
Standard Rate
10%
Cryptocurrency Tax
Laos has not introduced specific cryptocurrency tax legislation. The Bank of the Lao PDR has not established formal regulations for cryptocurrency trading. Laos has permitted some cryptocurrency mining operations, particularly those powered by hydroelectric energy.
Tax Treaties
Laos has approximately 12 double taxation agreements, primarily with regional trading partners and major investor countries.
Treaty Network
12
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Laos
See how much you could save by moving here from your current country.
+$19K
Tax in United States
$24K
24.4% effective
Tax in Laos
$6K
5.5% effective
You Save
77.4%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
