Lao PDR

There have been significant developments regarding income tax for individuals in Lao People’s Democratic Republic (PDR) under the Amended Income Tax Law No. 88/NA, dated 25 June 2025, which was published in the Lao Official Gazette on 19 June 2026 and will take effect from 3 July 2026 onwards.

The amended law provides an incentive of a 0% personal income tax (PIT) rate for income below 2.5 million Lao kip (LAK) (previously LAK 1.3 million), which will be effective starting from 3 July 2026 onward.