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Lao PDR
Corporate - Taxes on corporate income
Last reviewed - 07 August 2026Profit tax (PT)
Resident and non-resident business operators who establish enterprises under the laws of the Lao PDR, including non-residents who do not establish an enterprise in Lao PDR but operate and generate income within the country, are required to pay Personal Tax (PT) in Laos pursuant to the effective Income Tax Law (Amended) No. 88/NA, dated 25 June 2025, which was published on the government website on 19 June 2026.
Furthermore, this law applies to legal entities within corporate groups in Lao PDR that are members of multinational companies which have an annual revenues matching the criteria set forth by the Organisation for Economic Co-operation and Development (OECD). Such entities are required to pay an additional minimum PT within Lao PDR.
The standard PT rates for companies in Lao PDR are calculated based on net profits, adjusted for non-taxable income, non-deductible expenses, and other items in accordance with the Income Tax Law.
| Types of companies | PT rate (%) |
| Companies listed on the Laos Stock Exchange (LSX): For a period of ten years from the date of listing | 10 (previously 13) |
| Companies that produce, import, and sell tobacco products (2% to be contributed to the Tobacco Control Fund) | 22 (previously 26) |
| Companies that produce, import, and sell alcoholic beverages (2% to be contributed to the Heath Insurance Fund) | 22 |
| Companies in the mineral industry with concession agreement | 35 |
| Casino operations | 30 |
| Business operations related to innovation research, construction of modern hospitals, pharmaceutical factories and medical equipment manufacturing (after expiration of PT exemption period) | 5 |
| Business operations utilising technology derived from innovation, which are environment friendly, nature resources and clean energy in production (after expiration of PT exemption period) | 7 |
| Companies within a corporate group that are members of multinational corporation (MNC) | 15 |
| All other companies, both domestic and foreign | 20 (previously 24) |
Tax holidays and reduced PT rates are applicable to companies whose investment activities qualify as promoted investment activities (see the Tax credits and incentives section for more information) or who have large investments in mining and hydro power project (tax incentive is dependent on negotiations).
Lump-sum tax
The lump-sum tax is imposed on companies with small and medium businesses (400 million Lao kip [LAK] or less) that do not maintain Lao accounting books and derive income that is not subject to income tax pursuant to the Lao Tax Law. The lump-sum tax is paid in lieu of the PT, based on an agreement with the tax office; consequently, the lump-sum tax is regarded as a tax within the PT category. The lump-sum tax rates are as follows:
| Annual turnover (LAK) | Lump-sum tax rate (%) | ||
| Manufacturing, agriculture, and other processing industries | Commerce | Services | |
| 50 million or less (previously less than 12 million) | 0 | 0 | 0 |
| More than 50 million to 400 million | 1 (previously 3 to 5) | 2 (previously 4 to 6) | 3 (previously 5 to 7) |
Local income taxes
There are no provincial or local income taxes in Lao PDR.
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