Laos will implement new income tax rates for businesses and employees on February 17, in a move to improve tax compliance as well as boost productivity.
The new Income Tax Law (Tax Law No. 67/NA), which will replace Tax Law No. 70/NA issued in 2015, will lower the profit tax rate for small, medium, and large enterprises for most activities, according to ASEAN Briefing by Dezan Shira & Associates.
It will also provide better progressive rates and a larger deduction base for personal income tax, while halving annual filing periods from four to two.
The law was approved by the Lao National Assembly in June 2019 and was issued simultaneously with the Law on Tax Management, Law on Value-Added Tax, and the Law on Excise Tax, which determines the regulations, measures, management, and inspection of taxation activities in Laos.