Lao PDR

Taxable period

PT is determined on a calendar-year basis.

Tax returns

According to the Amended of Income Tax Law, PT return is required to submit 2 times per year:

• Semi Return: due by 20 July of the year
• Annual Return: due by 31 December of the year

PT is payable twice a year in advance, with a final payment (if any) due after the tax assessment. The final payment (if any) is due within 15 working days after the tax assessment process is completed. The first two payments are based either on the actual profit according to the summary accounts for each quarter, the estimated profit in the payment plan for the accounting year, or the actual profit tax paid in the previous year.

Penalties

Some of the penalties are as follows:

• Late filing and payment of taxes: Fine of 0.1% per day of delay based on the tax payable.
• Under reporting of income or underpayment of taxes:
• First offence: Fine at 30% of the tax payable.
• Second offence: Fine at 60% of the tax payable.
• Third offence: Fine at 100% of tax payable, permanent closure of business, and publication of the offence.

Tax audit process

In practice, the tax authorities will audit the company after the annual tax filing and issue a tax payment certificate to the company after they complete their audit process. Most large companies (i.e. assets of more than LAK 5 billion) are audited.

Statute of limitations

Generally, the tax department has the right to audit within three accounting years.

Topics of focus for tax authorities

There are no areas of special focus in tax examinations in Lao PDR.