Laos

South-Eastern Asia · LA · 8 treaties

Tax profile

Common questions

What are the main tax rates in Laos?

The standard VAT rate in Laos is 7%. The corporate tax rate is 20%, and the top personal income tax rate is 25%.

How long does it take to become a tax resident in Laos?

To become a tax resident in Laos, you must be present in the country for 183 days.

Does Laos have a dividend withholding tax?

Yes, Laos has a dividend withholding tax of 10%.

What makes you a tax resident — and how hard it is to stop being one.

• no statutory definition of individual tax residence in Lao Income Tax Law; practice focuses on source of income rather than formal residence status
• foreigners who stay in Lao PDR for an aggregate period of more than 183 days in any one‑year period and obtain remuneration from a foreign country are subject to Lao personal income tax on that foreign‑paid remuneration

Lao tax on individuals is fundamentally source‑based and the law does not define residence, so ceasing to have Lao‑source income and falling below the 183‑day presence threshold for foreign‑paid remuneration generally ends Lao tax exposure without long tail rules.

Source: PwC summary of Lao Income Tax Law (no separate official residency definition published by Lao tax authority)

Tax treaty network (12)

In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.