You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 21, 2020

Laos Clarifies COVID-19 Tax Exemptions

Subscribe to Updates

On April 10, 2020, Laos’ Ministry of Finance published Notification No. 1027/MOF to provide further details on income tax relief outlined in a previous notification, issued on April 2, to mitigate the economic impact of the COVID-19 pandemic.

The new notification provides clarification on the tax exemption that was provided for salaries and other income below LAK 5 million (approximately USD 560) per month.

  1. The new notification confirms that income of employees in the private or public sector below LAK 5 million per month will not be subject to personal income tax for a three month period (April, May, and June). For salaries higher than LAK 5 million, the usual progressive rate will be applied starting from LAK 5 million. The deadline for payment of this tax is the 20th of the following month.
  2. A three month profit tax exemption (April, May, and June) for micro-enterprises, as defined in the Income Tax Law, is confirmed. Micro enterprises that have paid their income tax in advance, under an agreement with the authorities, can deduct the amount paid for April, May, and June from payments for the following months, until the excess amount is exhausted.
  3. Those declaring personal income tax by means of a lump sum, or according to a concession agreement entered into with the government, must still declare as usual. The notification explains that these categories are not entitled to the exemption detailed above.
  4. Declaration of the LAK 5 million personal income tax which is exempted must be done in the usual method for personal income declaration. The TaxRIS system will automatically exempt the first LAK 5 million of income accordingly.
Related Professionals

Practices

Tax

Location

RELATED INSIGHTS​ 

February 9, 2016
Cambodia has introduced a new law and subsequent regulations which categorize all taxpayers into one of three classes based on criteria relating to their size. Each class has a different annual patent tax (a type of annual business registration tax), which is payable on every business activity of the company. The classes and criteria, as well as their fees, are set out in the following table:
Read More
January 15, 2016
The Guide to Doing Business in Thailand, published by Tilleke & Gibbins in association with Lex Mundi, provides a comprehensive overview of the legal and business environment for investors entering the Thai market. In particular, it covers topics such as the current political climate, investment incentives, financial facilities, exchange controls, import and export regulations, establishing and operating a business, labor and employment, tax, and immigration requirements. The guide provides an invaluable primer for investors new to Thailand.
Read More
June 3, 2015
The first edition of Global Agriculture Law, a Q&A-style guide that provides detailed overviews of agriculture law worldwide, has been published. The guide covers key practical issues, including those affecting agricultural companies and cooperatives, land ownership and usage rights, tax and financing, crop seed business, plant variety right protection, GM crops, importing animals, gene patents, and product liability.The Thailand chapter, written by lawyers at Tilleke & Gibbins, delves into the following main issues:
Read More
June 3, 2015
Global Agriculture Law (1st Ed.), a guide that presents a Q&A-style overview of agriculture law in 22 jurisdictions around the world, has been published. The Vietnam chapter of the guide, written by Kien Trung Trinh, Dung Thi Kim Vu, and Linh Duy Mai of Tilleke & Gibbins, covers key practical issues including those related to agricultural policy, acquisition of agricultural companies, acquisition of agricultural land, crop seed business, plant variety rights, genetically modified crops, importing animals and gene patents, and agricultural safety and product liability.
Read More