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Retained

  • Statutory Tax Rate 20
  • Surtax Based on Taxable Income 0
  • Surtax Based on Statutory Tax 0
  • Surtax Deductible from Taxable Income 0
  • Statutory Tax Deductable 0
  • Effective Tax Rate 20

Statutory Tax Rate

The standard corporate tax rate for companies for 2020 is 20% (previously 24%).

Effective 1 January 2020, companies engaged in the production, import, and distribution of tobacco products are subject to tax at the rate of 22% (previously 26%). Companies engaged in activities utilizing innovative technologies or renewable energy are subject to tax at the rate of 7%. Companies engaged in human resource development and certain medical activities are subject to tax at the rate of 5%. Further, companies listed on the Laos stock exchange are entitled to a 13% reduction from the corporate income tax rate (previously 5%) for four years after listing i.e., effective tax rate of 7% (previously 19%).