Lao PDR

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 personal income tax (PIT) 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.