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 4, 2020

Laos Provides Tax Relief and Other Measures to Reduce the Economic Impact of COVID-19

Subscribe to Updates

On April 2, the prime minister of Laos issued the Decision on the Policies and Measures to Reduce the Impact from the COVID-19 Pandemic. A number of the measures announced will affect locally established business operators.

Relief Measures

The latest decision reiterates previously issued measures from the Ministry of Finance and the Bank of Laos (see here and here). The most salient new measures provided in the decision are primarily concerned with tax relief as follows:

  • Salary tax exemption for both private and public sector employees, applicable for monthly salaries below LAK 5 million (approx. USD 550), in effect from April to June.
  • Deferment of payments for affected businesses, including normal contributions to the National Social Security Fund (NSSF), in effect for the months of April to June. The new deadline for contributions to the NSSF has not yet been specified.
  • Profit tax exemption for micro-enterprises from April to June.
  • Exemption from customs duties, tax, and related official fees, on medical devices and other products for prevention, control, and preparation in regard to COVID-19 (e.g., masks, sanitizers, medical equipment, and other necessary items—a more detailed list will be provided later).
  • Postponement of tax obligations for eligible business operators in the tourism industry for the months of April to June 2020. A detailed list of the businesses that will benefit from this provision will be provided by the Ministry of Information, Culture, and Tourism.

Other measures in the decision include postponement of the payment of annual road tax to June 30; confirmation of the Bank of Laos’ proposal to decrease the interest rate and ratio of the compulsory reserve for private commercial banks; and an announcement that the government is studying the possibility of reducing and deferring electricity and water bill payments for both individuals and businesses.

Public Sector Expenditures

The prime minister stated that large-scale investment projects should be encouraged to maintain their ongoing operations, private investment should be facilitated, and ministries and local authorities should decrease their usual administrative expenses by at least 10% of their budget for 2020. Expenses that will be reduced include those relating to (1) meetings and seminars, (2) welcoming of foreign guests, (3) scientific studies, (4) construction expenses, (5) national celebrations, (6) fixed assets, and (7) other expenses. The resulting cost savings will be redirected to the government’s COVID-19 prevention efforts.

New public investment infrastructure projects that have already been approved by the National Assembly in 2020 will be delayed to 2021. Projects deemed to be overvalued or to have a limited impact will be reassessed and suspended or renegotiated.

Lao Airlines is singled out as a state enterprise that may need to adapt its business plan, and it should be ready to resume its activities as soon as the COVID-19 pandemic has passed.

Comments

As is the case in many other jurisdictions, the government of Laos has taken a series of extraordinary measures over the past week to address the far-reaching impacts of the COVID-19 pandemic, and these further clarifications by the prime minister are welcome. Further details will be required in regard to the deadlines and eligibility for some of the relief measures, and we expect that these issues will be treated on a case-by-case basis by the line ministries until further explanations are provided through official channels.

Related Professionals

Practices

Corporate/M&A

Employment

Tax

Location

RELATED INSIGHTS​ 

April 22, 2026
A new decree in Vietnam brings significant implementation clarity to the country’s existing extended producer responsibility (EPR) legal framework. An EPR mechanism was first codified in Vietnam in the 2020 Law on Environmental Protection amid ongoing challenges surrounding the collection and treatment of product and packaging waste. The mechanism was progressively detailed through Decree No. 08/2022/ND‑CP and its successive amendments, but the regulatory framework remained insufficiently developed, notably in terms of support mechanisms for waste collection, recycling, and treatment. The newly launched regulations in Decree No. 110/2026/ND-CP (Decree 110), issued on April 1, 2026, and taking effect on May 25, 2026, stipulate fully and clearly the responsibility of manufacturers and importers to recycle products and packaging and to treat waste. Some key provisions of Decree 110 for manufacturers, importers, and related stakeholders are presented below. Subjects of EPR The Law on Environmental Protection assigns responsibility to manufacturers and importers for product and packaging recycling (under Article 54) or waste collection and treatment (under Article 55), depending on the type of products and packaging they produce or import. Decree 110 elaborates on these EPR provisions by specifying the responsible entities and listing out the types of products and packaging subject to recycling and waste treatment responsibilities. Decree 110 clarifies the responsible entities in special cases, such as when products under the same brand are made by multiple manufacturers, when there is a contract manufacturing or entrusted import relationship, and when the manufacturer or importer is part of a corporate group. Notably, exemptions may be applied in some scenarios, such as for manufacturers and importers of products and packaging exclusively for export, temporary import and re-export, or research and testing purposes, as well as for entities with annual revenue from related products not exceeding VND 30 billion. Recycling Responsibilities Decree 110
Read More
April 15, 2026
On March 31, 2026, Vietnam’s government issued Decree 102/2026/ND-CP (Decree 102), which amends Decree 75/2019/ND-CP on administrative sanctions for competition law violations (Decree 75). Effective from May 20, 2026, the new decree introduces a number of significant changes aimed at strengthening enforcement, revising penalty structures, and broadening the range of remedial measures, primarily for violations related to economic concentration. Revised Penalties for Economic Concentration Violations Decree 102 significantly revises the penalties for violations related to economic concentration. Failure to notify an economic concentration; implementing an economic concentration before clearance Under the new framework, Articles 14 and 15 of Decree 75 have been amended to impose a range of monetary fines, rather than relying solely on percentage‑based penalties as under the previous regime, for violations involving the failure to notify an economic concentration or the implementation of an economic concentration prior to clearance. The fines range from VND 500 million to VND 1 billion for each enterprise participating in a concentration with combined assets, revenues, or purchase value below VND 3,000 billion in the preceding fiscal year, capped at 5% of the violating enterprise’s total turnover in the relevant market. For concentrations meeting or exceeding the VND 3,000 billion threshold across those same metrics, the fines increase to VND 1 billion to VND 2 billion per enterprise, also subject to the 5% cap. These differentiated thresholds allow penalties to better reflect the size of the transaction and its potential competitive impact. Non-compliance with conditional approvals Enterprises that do not implement or only partially implement the conditions specified in a conditional economic concentration approval decision face fines ranging from 1% to 3% of total turnover in the relevant market during the fiscal year preceding the violation. Decree 102 also adds a new remedial measure requiring enterprises to fully implement all conditions
Read More
March 31, 2026
Against the backdrop of Vietnam’s rapid economic and technological transformation and its ambition to build a knowledge-driven economy, the National Assembly of Vietnam adopted Law on Higher Education No. 125/2025/QH15 on December 10, 2025, The new law took effect on January 1, 2026, replacing Law on Higher Education No. 08/2012/QH13 of 2012 and its subsequent amendments after more than a decade of implementation. The new law reflects a significant policy shift toward enhancing the institutional autonomy of higher education institutions (“HEIs”)—universities and other university-level institutions. By granting broader autonomy, Vietnam aims to enable HEIs to operate more proactively, better respond to market needs, and improve the quality and efficiency of education and research activities. Comprehensive Institutional Autonomy in HEIs The new law marks a significant shift by granting HEIs comprehensive autonomy as a statutory right, within the bounds of the licensed scope of educational operation and the legal framework, rather than a conditional right as provided under the former law. Under the new law, HEIs are empowered to exercise autonomy over their academic expertise, training, scientific research, international cooperation, organizational structure, personnel, finance, and other higher education activities. The expansion of institutional autonomy is also accompanied by a correspondingly strengthened framework of institutional accountability. However, Vietnam maintains a certain degree of control and imposes restrictions on institutional autonomy in sensitive and strategically important areas. These controls and restrictions include limitations on training autonomy in the majors of teacher training, national defense, and security; and restrictions on financial and personnel management autonomy for HEIs under the administration of the Ministry of National Defense and the Ministry of Public Security. New Model for Curriculum Development The new law removes the concept of “opening a training major” and focuses regulation on how training programs are developed and delivered. Under the previous regime,
Read More
March 31, 2026
Thailand’s Department of Business Development (DBD) has issued a regulation imposing additional requirements for amending a company’s directors and signatory power to designate a foreign national as an authorized signatory of the company. This measure, effective April 1, 2026, has been introduced in response to the widespread use of Thai nationals as nominees to conduct business on behalf of foreigners, a practice considered to have an adverse impact on the country’s economic stability and security. The new measures are particularly concerned with changes to the authorized signatory structure of companies that originally had only Thai directors authorized to sign for and bind the company. Under the new rules, any amendment that results in a foreign national becoming an authorized signatory—whether solely or jointly—for such a company will be subject to additional verification. Directors signing an application to register such an amendment to the company’s authorized signatory structure are now also required to provide a statement confirming that all shareholders of the company have made genuine contributions and no Thai national has assisted with, supported, or participated in business activities in a nominee capacity. Implications Companies intending to appoint foreign directors as authorized signatories should be aware of the increased regulatory requirements and assessments. Additional documentation and confirmations may be required as part of the registration process.
Read More