Post by congregatio on Apr 21, 2020 23:35:21 GMT 4
On February 17, 2020, Laos' new Income TaxLaw (Tax Law No. 67/NA) will come into effect. The law replaces Tax Law No. 70/NA, which was issued in 2015 and sets out the latest tax rates for businesses and employees.
The new Income Tax Law has lowered the profit tax (PT) rate for small, medium, and large enterprises for most activities and there will be two annual filing periods compared to four previously. Additionally, the law provides better progressive rates and a larger deduction base for personal income tax (PIT).
The law was approved by the National Assembly (parliament) in June 2019 and was issued simultaneously with the Law on Tax Management, Law on Value-Added Tax, and the Law on Excise Tax.
These laws determine the regulations, measures, management, and inspection of taxation activities in Laos. The government hopes this will improve tax compliance as well as boost productivity.
Investors are advised to use the service of registered tax professionals to better understand these latest tax amendments.
Personal income tax
PIT is collected on a monthly basis with the new progressive rates as:
Profit tax
PT is collected from all domestic and foreign businesses and is imposed on profits. The progressive rates range from 0-20 percent.
Other types of income taxes
These are the new income tax rates for selected business activities.
Penalties for non-compliance
There are now clearer guidelines and penalties for non-compliance.
source:
Ayman Falak Medina
Dezan Shira & Associates
Jakarta Office
The new Income Tax Law has lowered the profit tax (PT) rate for small, medium, and large enterprises for most activities and there will be two annual filing periods compared to four previously. Additionally, the law provides better progressive rates and a larger deduction base for personal income tax (PIT).
The law was approved by the National Assembly (parliament) in June 2019 and was issued simultaneously with the Law on Tax Management, Law on Value-Added Tax, and the Law on Excise Tax.
These laws determine the regulations, measures, management, and inspection of taxation activities in Laos. The government hopes this will improve tax compliance as well as boost productivity.
Investors are advised to use the service of registered tax professionals to better understand these latest tax amendments.
Personal income tax
PIT is collected on a monthly basis with the new progressive rates as:
Profit tax
PT is collected from all domestic and foreign businesses and is imposed on profits. The progressive rates range from 0-20 percent.
Other types of income taxes
These are the new income tax rates for selected business activities.
Penalties for non-compliance
There are now clearer guidelines and penalties for non-compliance.
source:
Ayman Falak Medina
Dezan Shira & Associates
Jakarta Office