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LAO PDR TAX SYSTEM

LAO PDR TAX SYSTEM. Personal Income Tax Corporate Income Tax/Profit Tax Excise Tax Tax Treaties Tax Assessment Appeal and Dispute Resolution Conclusion and Challenge. LAO PDR TAX SYSTEM. Personal Income Tax Resident employee: progressive rate 5 - 25%;

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LAO PDR TAX SYSTEM

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  1. LAO PDR TAX SYSTEM Personal Income Tax Corporate Income Tax/Profit Tax Excise Tax Tax Treaties Tax Assessment Appeal and Dispute Resolution Conclusion and Challenge.

  2. LAO PDR TAX SYSTEM • Personal Income Tax • Resident employee: progressive rate 5 - 25%; • Foreign employee: single rate: 10%; • Immovable Property and Movable Capital: 5 -15%.

  3. LAO PDR TAX SYSTEM 2. Corporate Income Tax/Profit Tax: • General Rate on Tax Law: 35%; • Foreign Investment Promotion Law: • Zone 1: 7 years exemption and then rate 10% onwards; • Zone 2: 7,5% for 3 years and then rate 15% onwards; • Zone 3: 10% for 2 years and then rate 20% onwards; (Zone 1 has littleness infrastructures)

  4. LAO PDR TAX SYSTEM 3. Excise Tax: • The Excise Tax is belong to the Lao Tax Law; • Rate applied from 5 – 90%; • Excise Tax from importation is a custom’s revenue collection;

  5. LAO PDR TAX SYSTEM 4. Tax Treaties: • Thailand, • Vietnam, • China, • Korea Republic, • Kuwait • Signed: Malaysia, Brunei, Russia, Myanmar, DPR Korea. • Negotiating: Indonesia, Singapore, Luxemburg.

  6. LAO PDR TAX SYSTEM 5. TAX ASSESSMENT Payment of Personal Income Tax: • Income from Salary and Wage Monthly before 15th; • Income from Immovable Property 10 days from the date of receipt; • Income from Movable Capital 10 days from the date of receipt;

  7. LAO PDR TAX SYSTEM 5. TAX ASSESSMENT(Cont)Payment of Corporate Income Tax

  8. LAO PDR TAX SYSTEM 6. TAX APPEAL AND DISPUTE RESOLUTION(Cont) • Dispute Resolution and enforcement steps from Tax liabilities: • Re-education/Warning; • Subject to Fined(5 – 100%); • Public announcement; • Court of Justice dispute.

  9. LAO PDR TAX SYSTEM 6. TAX APPEAL AND DISPUTE RESOLUTION D I S P U T E / R E S O L U T I O N • National Assembly; • Prime Minister Office; • Ministry of Justice (or Courts); • Ministry of Finance; • Tax Department; • Local Tax Authorities. (Present, we have no specific Tax Court). A P P E A L

  10. LAO PDR TAX SYSTEM 7. Conclusion and Challenge: • Conclusion: 1. Lao PRD has no specific Tax Court; Enforcements are mainly re-education , Warning /fine and still promotion (especially SME) ; 2. Personal Income Tax and Corporate Income Tax rate are not the same rate among domestic and foreign entity. 3. Tax Treaty’ issue (decision making, HR, budget). .

  11. LAO PDR TAX SYSTEM 7. Conclusion and Challenge(Cont) • Challenge: 1. Tax education and enforcement; 2. Tax payer information; 3. VAT Implementation(legislation, collection, deduct, refund and budget); 4. Tax Law 2005 reform and modernize Tax administration; 5.Tax exemption implementation; 6. Many specific CIT from: - Concession Agreement such as: Hydropower Projects, Plantation - Mining agreement; - Foreign Investment Promotion Law; 7.HR, English skill, IT and equipments;

  12. Thank you

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