TAX & COMPLIANCE
Tax & Compliance for Businesses in Laos
Registering a company in Laos is only the beginning. Ongoing tax, accounting, employment and licensing obligations depend on your business type, activity and structure — here is the current framework.
QUICK ANSWER
A registered business in Laos typically has ongoing obligations across five areas: tax (profit tax, VAT, withholding tax, employee income tax), accounting and record-keeping, employment and payroll compliance, business licensing (separate from company registration), and sector-specific regulatory requirements. Which specific obligations apply — and on what schedule — depends on your business type, turnover, activity, and whether you employ staff or foreign workers. This page is a general overview of the current framework, not a substitute for advice from a licensed accountant or tax adviser on your specific situation.
At a Glance
MAIN TAX TYPES
Profit (corporate income) tax, VAT, withholding tax, personal income tax, excise tax
CURRENT GOVERNING LAWS
Income Tax Law No. 88/NA (2025, in force 1 July 2026); VAT Law (Amended) No. 48/NA (2018); Excise Tax Law No. 68/NA (2019); Tax Administration Law No. 66/NA (2019)
STANDARD PROFIT TAX RATE
20%, with different statutory rates for specific sectors (see below)
STANDARD VAT RATE
10%
ACCOUNTING FRAMEWORK
Accounting Law (Amended) No. 46/NA (2023); Ministry of Finance sets applicable standards
WHAT VARIES BY BUSINESS
Filing cadence, applicable rates, licensing requirements and social security obligations all vary by business type, turnover, sector and employee headcount
20%
STANDARD PROFIT TAX
10%
STANDARD VAT
Filing dates are fixed. Rates are not always.
The headline rates are a starting point, not the whole picture — your sector, structure, and incentive status can all shift the number that actually applies. AQQOUNT keeps your filing calendar and your applicable rates aligned, year-round.
Official Information: The Current Tax Framework
OFFICIAL INFORMATION
Laos does not have a single consolidated tax law — tax types are governed by separate, periodically amended laws. The current Income Tax Law No. 88/NA was adopted 25 June 2025 and entered into force 1 July 2026, replacing the previous Income Tax Law No. 67/NA (2019). VAT is governed by the VAT Law (Amended) No. 48/NA (2018); excise tax by the Excise Tax Law No. 68/NA (2019); and tax administration (registration, filing procedure, penalties) by the Tax Administration Law No. 66/NA (2019).
Official source: Income Tax Law No. 88/NA (2025); VAT Law (Amended) No. 48/NA (2018); Excise Tax Law No. 68/NA (2019); Tax Administration Law No. 66/NA (2019)
This tax-law architecture has been restructured multiple times over the past decade (2015–16, 2018–19, 2021, and most recently 2025–26). Treat any tax rate or figure as current as of this page’s last-reviewed date, and confirm with the Tax Department or AQQOUNT before relying on it for a filing decision.
Corporate (Profit) Tax
OFFICIAL INFORMATION
The standard profit tax rate is 20% for both domestic and foreign-invested companies. Several activities are subject to different statutory rates as part of the standard framework (not as an investment incentive).
Official source: Income Tax Law No. 88/NA (2025)
| Activity / Category | Statutory Rate |
|---|---|
| Standard rate (most businesses) | 20% |
| Alcoholic beverage production | 22% |
| Tobacco products | 22% |
| Casino operators | 30% |
| Mining concessionaires / mineral exporters | 35% |
| Companies listed on the Lao Securities Exchange | 10% for 10 years from listing |
| Members of a qualifying multinational enterprise group | 15% minimum (domestic minimum top-up tax) |
| Microenterprises | 5% flat, on net profit |
Small and medium enterprises with turnover of LAK 400 million or below that do not maintain full accounting books may instead pay a lump-sum tax of 0–3% of turnover, varying by sector, rather than the standard profit-tax calculation.
AQQOUNT PRACTICAL GUIDANCE
This page describes the standard tax framework only. Sector- and zone-based tax exemptions and reduced rates available to promoted investments are a separate incentive layer — see our Investment Incentives in Laos guide.
Value-Added Tax (VAT)
OFFICIAL INFORMATION
The standard VAT rate is currently 10%. This rate has changed twice in recent years: it was reduced from 10% to 7% effective January 2022, then reinstated to 10% in March 2024. Exported finished goods are zero-rated; unprocessed agricultural products, seeds, fertilizers, agricultural equipment, and educational and medical services are VAT-exempt.
Official source: VAT Law (Amended) No. 48/NA (2018), as subsequently amended
Businesses generally register for VAT once annual turnover reaches approximately LAK 400 million. In practice, registration is largely automatic upon receiving a Taxpayer Identification Number and investment approval, except for micro-enterprises. Overseas digital-platform suppliers are also within scope of Lao VAT obligations under more recent Ministry of Finance instructions.
Withholding Tax
Withholding tax applies to a range of payment types, generally deducted at source by the paying party. The rates below reflect the current framework — confirm the applicable rate for your specific payment type and counterparty status (resident vs. non-resident) before relying on it.
| Payment Type | Rate |
|---|---|
| Dividends / loan interest | 10% |
| Sale or lease of assets (vehicles, buildings, machinery) | 10% |
| Brokerage, consulting, commission, service fees | 10% |
| Construction / repair services | 5% |
| E-commerce / online sales | 10% |
| Teacher / researcher payments | 5% |
| Copyrights, patents, trademarks | 5% |
| Sports / performing-arts payments | 5% |
| Share sale, assignment or transfer | 2% |
| Carbon credits, forestry products | 10% |
| Agricultural products / handicrafts | 2% |
| Lottery prizes over LAK 10,000,000 | 5% |
| Payments to non-resident/unregistered foreign suppliers | Deemed-profit rates of 1.4%–6% by activity, plus 10% VAT on services |
AQQOUNT PRACTICAL GUIDANCE
Sources disagree on the current remittance deadline: one source describes a 15-calendar-day deadline under the newest law, while another compliance guide still states 15 working days. We are disclosing this discrepancy rather than picking one — confirm the current deadline with the Tax Department or your accountant before your next filing.
Personal Income Tax (Employment Income)
OFFICIAL INFORMATION
Employment income is taxed on a progressive monthly scale.
Official source: Income Tax Law No. 88/NA (2025)
| Monthly Income (LAK) | Rate |
|---|---|
| Up to 2,500,000 | 0% |
| 2,500,000 – 5,000,000 | 5% |
| 5,000,000 – 15,000,000 | 10% |
| 15,000,000 – 25,000,000 | 15% |
| 25,000,000 – 65,000,000 | 20% |
| Over 65,000,000 | 25% |
The tax-free threshold is linked to the statutory minimum wage, meaning it may move if the minimum wage changes — do not treat it as a permanently fixed figure. Separately, the Investment Promotion Law provides a personal income tax incentive for specialists working in promoted sectors — see our Investment Incentives in Laos guide for that specific, investment-linked treatment.
Tax Registration
AQQOUNT PRACTICAL GUIDANCE
Enterprise registration and tax registration are integrated in the current system: applying for an Enterprise Registration Certificate through the Ministry of Industry and Commerce also generates your Taxpayer Identification Number, which appears on the same certificate. VAT registration is largely automatic upon receiving your TIN and investment approval (except for micro-enterprises). Processing timelines are generally reported in the range of about 10 working days for standard registrations, though this can vary — confirm current processing times with the registering authority.
Tax Filing & Payment Cycle
The general compliance cycle includes periodic and annual obligations. Where our sources disagree on a specific deadline, we disclose both rather than presenting a single figure as certain.
01VAT — monthly
VAT-registered businesses generally file and pay monthly, based on the previous month’s activity. Overseas digital-platform suppliers file quarterly.
02Withholding tax — periodic
Remitted shortly after each payment giving rise to withholding tax. Sources disagree on the exact window (15 calendar days vs. 15 working days) — confirm the current requirement before filing.
03Excise tax — monthly, by the 20th
Domestic producers of excisable goods generally file by the 20th of the following month.
04Profit tax — advance and annual
Profit tax is generally paid partly in advance during the year, with an annual reconciliation. Our sources disagree on the exact annual-return deadline (one source cites 31 December; another cites 20 January of the following year, with financial statements due by 31 March) — confirm your specific deadline with your accountant or the Tax Department.
AQQOUNT PRACTICAL GUIDANCE
Because deadlines can differ by taxpayer type, size, and current administrative practice, we recommend confirming your specific filing calendar directly rather than relying on a generic date — AQQOUNT’s accounting and tax team can confirm this for your business.
Accounting & Record-Keeping
OFFICIAL INFORMATION
The Accounting Law (Amended) No. 46/NA (2023) governs bookkeeping obligations. The Ministry of Finance sets applicable accounting standards. Public-interest entities — banks and financial institutions, insurers, securities companies, and public companies — must apply International Financial Reporting Standards (IFRS). The applicable standard for other (non-public-interest) entities was not something we could confirm in detail during this research pass.
Official source: Accounting Law (Amended) No. 46/NA (2023)
AQQOUNT PRACTICAL GUIDANCE
An enterprise registered as a legal entity is generally expected to begin bookkeeping from its date of registration, and to keep invoices, receipts, bank statements and supporting financial documents on an ongoing basis. Lao law sets a document-retention requirement, but we were not able to independently verify a specific retention period from a primary or clearly-attributed current source this pass — do not rely on any specific number you may see elsewhere without confirming it directly with your accountant or the Ministry of Finance.
Employment Compliance
Tax and compliance obligations extend directly into payroll:
OFFICIAL INFORMATION
Employers must register with the Lao Social Security Organisation (LSSO) and register their employees, generally before or upon hiring. Combined contributions are currently 11.5% of gross remuneration (6.0% employer, 5.5% employee), calculated against a salary base capped at LAK 4,500,000 per month. Sources disagree on the monthly remittance deadline (the 15th vs. the 20th of the following month) — confirm the current requirement directly with the LSSO or your accountant.
Official source: Social Security Law No. 34
Employee income tax is withheld and remitted through payroll under the personal income tax framework above. Where a business employs foreign staff, work authorization and immigration compliance are a further, separate requirement — see our Work Permits & Visas for Foreign Employees in Laos guide.
Business Licenses & Sector Compliance
AQQOUNT PRACTICAL GUIDANCE
Company registration and sector operating licenses are two separate steps. Your Enterprise Registration Certificate establishes your company’s legal existence and lists its authorized activities, but a regulated business activity typically also requires a separate business operating license or activity-specific permit from the ministry responsible for that sector before you can actually commence operations. For non-regulated activities, the Enterprise Registration Certificate alone is generally sufficient to begin operating. We are not publishing a specific list of which activities require which license — this varies by sector and should be confirmed with the relevant ministry or with AQQOUNT for your specific activity.
Annual Compliance Checklist
01Maintain corporate records
Keep your Enterprise Registration Certificate, articles of association, and any amendments up to date and accessible.
02Maintain accounting records
Keep invoices, receipts, bank statements and supporting documents organized on an ongoing basis, not reconstructed at filing time.
03Complete required tax filings
Monthly VAT and withholding tax, and profit tax on its applicable advance/annual cycle.
04Pay applicable taxes on time
Late payment generally carries a daily penalty — see Common Compliance Risks below.
05Maintain employee and payroll compliance
LSSO registration and contributions, and personal income tax withholding on payroll.
06Renew applicable licenses
Confirm renewal timing for any sector-specific operating license your business holds.
07Review foreign employee work authorization
Confirm work permits and visa status remain valid for any foreign staff — see our Work Permits & Visas guide.
08Review sector-specific obligations
Confirm whether your activity has additional reporting or compliance requirements beyond the general framework.
Your Compliance Calendar Depends on Your Business
AQQOUNT PRACTICAL GUIDANCE
There is no single compliance calendar that applies to every business in Laos. Your specific filing dates, licensing renewals and reporting obligations depend on your company type, tax registration status, employee headcount, and sector. Rather than publish a generic calendar that may not match your situation, we recommend tracking the categories above against your own registration details, and confirming exact dates with your accountant — AQQOUNT’s accounting and tax team maintains this calendar for clients directly.
Common Compliance Risks
01Missing filing deadlines
Late filing or payment generally triggers a daily penalty that compounds the longer it goes unresolved.
02Outdated or missing sector licenses
Operating a regulated activity without its specific license, even with valid company registration.
03Poor record-keeping
Reconstructing months of missing documentation at filing time is a leading cause of errors and delay.
04Incorrect tax treatment
Applying an outdated rate or an incentive you have not confirmed you qualify for.
05Unreported changes
Changes to company details, activities, or structure that are not reported to the relevant authority.
06Expired foreign-employee work authorization
Continuing to employ a foreign staff member after their permit or visa status has lapsed.
07Missing corporate documents
Failing to maintain up-to-date corporate records required for license renewals or bank relationships.
Penalties & Enforcement
OFFICIAL INFORMATION
Late tax filing or payment generally carries a fine calculated per day on the tax payable. Under-reporting of income carries escalating penalties for repeated offenses, and the tax authority has the power to freeze bank deposit accounts as an enforcement measure in cases of non-compliance. Companies above a certain asset threshold are more likely to be selected for audit, generally within a multi-year review window.
AQQOUNT PRACTICAL GUIDANCE
We are deliberately not publishing a single specific penalty percentage or threshold figure as a universal rule — enforcement details vary by the specific tax type and violation, and by current administrative practice. Confirm current exposure for your specific situation with a licensed tax adviser rather than relying on a general figure.
Frequently Asked Questions
What taxes does a company in Laos need to pay?
Depending on its activity, a Lao company may be liable for profit (corporate income) tax, VAT, withholding tax on certain payments, and personal income tax withheld from employee payroll. Excise tax applies to specific goods only.
Does every company need VAT registration?
Most businesses register for VAT once turnover reaches approximately LAK 400 million, and registration is largely automatic upon receiving a Taxpayer Identification Number and investment approval, except for micro-enterprises.
How often do businesses file taxes?
VAT is generally filed monthly. Profit tax follows an advance-payment and annual-reconciliation cycle. Withholding tax is remitted shortly after each relevant payment. Exact deadlines can vary — confirm your specific filing calendar with your accountant.
What accounting records must a company maintain?
Ongoing records include sales and purchase invoices/receipts, bank statements, payroll records, and supporting financial documents, maintained under the Accounting Law (Amended) No. 46/NA. A specific document-retention period applies under Lao law, but we recommend confirming the current period directly with your accountant rather than relying on a general figure.
Does company registration cover sector licensing?
No. An Enterprise Registration Certificate establishes your company’s legal existence, but many regulated activities require a separate business operating license or sector-specific permit before you can commence operations.
What employment compliance obligations apply?
Employers must register with the Lao Social Security Organisation and register their employees, contribute to social security (currently a combined 11.5% of gross remuneration, capped at a defined salary base), and withhold personal income tax through payroll. Foreign employees carry additional work-authorization requirements.
What should a new company do after registration?
Confirm your tax registration status, set up ongoing bookkeeping, determine whether your specific activity requires a sector operating license, register with the LSSO if you have employees, and establish a compliance calendar specific to your business type.
Is the standard corporate tax rate the same for every business?
No. While 20% is the standard rate, several activities (alcohol, tobacco, casinos, mining, listed companies, and microenterprises) are subject to different statutory rates under the current Income Tax Law.
Related Guides
01Company Registration in Laos
The registration process that precedes ongoing tax and compliance obligations.
03Work Permits & Visas for Foreign Employees
Immigration and work-authorization compliance for foreign staff.
04Business Structures in Laos
How your legal structure affects compliance obligations.
06Accounting & Bookkeeping in Laos
The bookkeeping records that your monthly and annual tax filings draw on.
Want Your Compliance Calendar Confirmed?
AQQOUNT’s accounting and tax team can confirm exactly which obligations apply to your business and keep your filings on schedule.
Last reviewed: September 2026
Official sources:
- Income Tax Law No. 88/NA (2025, in force 1 July 2026) — cited via PwC Worldwide Tax Summaries and VDB Loi legal alert
- VAT Law (Amended) No. 48/NA (2018), as subsequently amended — cited via PwC and Tilleke & Gibbins (VAT rate history)
- Tax Administration Law No. 66/NA (2019) — cited via PwC Tax Administration summary
- Accounting Law (Amended) No. 46/NA (2023) — cited via Lao Trade Portal law listing
- Social Security Law No. 34 — cited via Acclime Laos and the ASEAN Social Security Association LSSO profile
- Law on Investment Promotion (Amended), No. 62/NA (2024), Article 12 — specialist income tax incentive (see Investment Incentives in Laos guide)