All salary and non-cash benefits in kind are taxable.
There is no separate tax on capital gains in Lao PDR. However, sales of shares are subject to income tax at the following rates:
- If there is evidence of a cost certificate: 10% of the gain.
- If there is no evidence of a cost certificate: 2% of the selling price.
Income derived from the sale or transfer of real property is subject to income tax at the following rates:
- If there is evidence of a cost of trading or transfer certificate: 5% of the gain.
- If there is no evidence of a cost of trading or transfer certificate: 2% of the selling price.
Dividends (including share in partnership) received are taxed at 10% for both residents and non-residents.
Interest derived from deposit money in bank accounts and bonds is not subject to PIT.
Rental income is taxed at 10%.
Royalties from intellectual property (IP) are taxed at 5%.
Unrealised exchange gains/losses
Unrealised exchange gains are not taxable and losses are not deductible.
Partnership income is generally taxed like companies and the partnership income distributed is treated as dividends. (See the Corporate summary for more information.)