Corporate - Significant developments

Last reviewed - 26 January 2022

Measures in response to COVID-19

The Prime Minister's Office issued some policies and measures to reduce the adverse effects of the outbreak of COVID-19 to the Lao People's Democratic Republic (PDR) economy. Some of the policies are as follows:

  • For employees, the monthly tax-free threshold shall be increased to 5 million Lao kip (LAK) for a period of three months (i.e. April to June 2021). The payroll tax shall be as follows:

    Monthly salary base (LAK) Tax rate (%) PIT of each threshold (LAK) Total PIT (LAK)
    From To
    0 5,000,000 0 0 0
    5,000,001 15,000,000 10 1,000,000 1,000,000
    15,000,001 25,000,000 15 1,500,000 2,500,000
    25,000,001 65,000,000 20 8,000,000 10,500,000
    65,000,001 and above 25 - -
  • The due date for filing the payroll tax return and paying the tax for the months of April to June 2021 has been extended from the 20th day of the following month to the end of the following month.
  • Income of micro enterprises with an annual income of LAK 50 million to LAK 400 million shall be exempt from income tax for the months of April to June 2021.
  • The submission of the 2020 financial statements has been extended from 31 March 2021 to 30 June 2021.
  • The importation of goods used in the containment and prevention of COVID-19 (e.g. surgical masks, liquid soap, medical equipment) shall be exempt from custom duties, taxes, and other charges.