ECCIL member, VDB Loi Laos has shared the New Income Tax Law No. 67/NA dated 18 June 2019 (“New Income Tax Law”) which has now been executed by the National Assembly President and promulgated by the President of the Lao PDR. It will come into force 15 days from the date of its publication in the official gazette (expected in February 2020).
What are the changes in the new law?
The New Income Tax Law replaces Tax Law No. 70/NA dated 15 December 2015 (“Tax Law 2015”), and covers the following:
▪ Profit tax (“PT”) – Levied on micro-enterprises, small- to large-scale enterprises, and freelancers, with generally lower rates for most activities and a change in the filing period.
▪ Personal income tax (“PIT”) – Collected on a monthly basis and audited on an annual basis, with better progressive rates and a larger deduction base.
▪ Income tax on other income, including:
– Freelance income
– Online trading income
– Enterprise-share sale
– Non-banking loan interest
– Guarantee fees
– Commission fees
– Rental income
– Intellectual property fees
▪ New and more precise penalties
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