Individual - Significant developments

Last reviewed - 23 June 2021

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 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 - -
    • 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 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.