Laos taxes people who live and work there on a simple monthly scale from 0% to 25%. What catches newcomers is how fast it starts. If a Lao employer pays you, tax is withheld from your first salary, with no minimum stay. If you work in Laos but a foreign employer pays you, Lao tax kicks in once you've lived there more than 183 days in the year.
This guide covers Lao personal income tax for the 2026 tax year (the calendar year) under the amended Income Tax Law of 2025, which took effect in 2026.
What's changed: the National Assembly passed an amended Income Tax Law, No. 88/NA, on 25 June 2025. It was promulgated on 6 August 2025 and replaces the 2019 law (No. 67/NA), but it took effect only after publication in the Official Gazette in 2026, so income paid earlier in 2026 may still fall under the 2019 rules. Check with the tax office. For individuals, the tax-free band on monthly salary rose from LAK 1.3 million to LAK 2.5 million, and the law now ties it to the minimum wage. Commission, consulting and other service fees are taxed at 10% of the fee, up from 5%, and that income no longer goes through the annual reconciliation on the scale. Small businesses (micro-enterprises) now pay 5% of net profit instead of 1% to 3% of turnover. Gifts and prizes are now taxed only above LAK 5 million (it was LAK 1.3 million), and lottery wins only above LAK 10 million.
📋 Laos tax at a glance for 2026
Topic | Details |
|---|---|
Tax system | Residents are taxed on income from Laos and abroad. Foreigners working in Laos and paid abroad are taxed once they live in Laos more than 183 days in the year |
Tax year | The calendar year, 1 January to 31 December 2026 |
Income tax rates | 0% to 25% on monthly salary. The first LAK 2.5 million a month is at 0%; 25% applies above LAK 65 million a month (about US$2,890) |
All-in on a US$100k salary | About 22.1% (LAK 2,250 million at LAK 22,500 to US$1, including social security) |
Other income | Flat rates on the gross amount: 10% on dividends, rent and consulting fees; 2% on the sale price of shares and property; 5% on royalties |
Foreign income | Pensions are exempt. Bank deposit interest is exempt. Dividends are taxed at 10% wherever they come from |
Residence at a glance | Getting in: easy (a permanent address, or living, working or doing business in Laos; 183 days for foreign-paid workers). Leaving: no exit tax |
Double tax treaties | A small network, mostly in Asia, including Thailand and Singapore. No treaty with the UK |
US dollar figures use LAK 22,500 to US$1. The Bank of the Lao PDR's rates on 20 October 2026 were LAK 22,400 (buying) and LAK 22,623 (selling) for US$1, so US$100k is about LAK 2,250 million, US$40k about LAK 900 million and US$20k about LAK 450 million.
👉 Bank of the Lao PDR: exchange rates
The 183-day rule, and who pays from day one
Why do expats in Laos get this wrong? Because there are two rules, and which applies depends on who pays you.
Image 1 — paid in Laos or paid from abroad: the 183-day line
Article 32 of the Income Tax Law sets out who pays personal income tax:
Anyone with income in Laos, whether Lao, a long-term foreign resident, a foreigner or stateless, pays Lao income tax on it.
Foreigners who come to work in Laos and are paid there pay Lao tax. The law sets no minimum stay, so a Lao employer withholds tax from your first month.
Foreigners who work in Laos but are paid abroad pay Lao tax if they live in Laos more than 183 days in the year, continuously or not. This is the rule that matters for remote workers.
Residents who go to work abroad still pay Lao tax on that income, unless a tax treaty says otherwise.
The 183-day rule gives way to a tax treaty, or to an investment agreement between the Lao government and an investor.
So if you move to Vientiane and keep working for a company in London or Bangkok, count your days. Up to 183 days in the year, the law doesn't tax your foreign salary. Above that, the full monthly scale applies, and there's no employer in Laos to withhold it, so ask the tax office how to declare and pay it.
When you become tax resident in Laos, and how you stop
The law doesn't use a day count to define a resident. Under Article 3, a resident is a person with a permanent address in Laos, or who lives, earns a living or does business there. A non-resident earns a living or does business in Laos but doesn't live there and has no permanent address.
So you're resident as soon as you've settled in Laos with a home, a job or a business. Residents are taxed on income from Laos and abroad (Article 31), although much foreign income is exempt or not on the list of taxable income.
Non-residents are taxed only on Lao income, at the same 0% to 25% scale on salary and at flat rates on the gross amount for most other income, withheld by the payer within 15 days of payment.
Leaving is simple. Stop living, working and doing business in Laos and you stop being resident. We found no exit tax in the Income Tax Law. Keep records of when you left, and settle your last month's tax with your employer before you go.
Income tax rates for 2026
Tax on salary is worked out monthly. Your employer calculates it, withholds it and pays it to the tax office by the 20th of the following month (Article 39).
Laos monthly income tax rates on salary in 2026
Monthly salary | Rate | Tax on the band |
|---|---|---|
Up to LAK 2,500,000 | 0% | 0 |
LAK 2,500,001 to 5,000,000 | 5% | LAK 125,000 |
LAK 5,000,001 to 15,000,000 | 10% | LAK 1,000,000 |
LAK 15,000,001 to 25,000,000 | 15% | LAK 1,500,000 |
LAK 25,000,001 to 65,000,000 | 20% | LAK 8,000,000 |
Over LAK 65,000,000 | 25% | On the excess |
Source: Income Tax Law No. 88/NA of 2025, Article 38(1). The annual version in Article 50 uses the same bands times 12 (0% up to LAK 30 million, 25% above LAK 780 million). The first band moves with the minimum wage.
Each year, salaried people also summarise their income and the tax withheld and file it with the tax office by 31 March of the following year. That's when the annual table is applied and you can deduct up to LAK 5 million a year each for up to three dependants with no income of their own, such as a spouse, parents or children under 18 (Article 51).
Worked example
You work for a Lao employer and earn US$100k a year: LAK 2,250 million, or LAK 187.5 million a month.
Tax on the first LAK 65 million a month is LAK 10,625,000. The other LAK 122.5 million is taxed at 25%: LAK 30,625,000.
That's LAK 41,250,000 a month, or LAK 495 million a year (22.0%). The annual table gives the same figure.
Social security takes 5.5% of insured pay up to LAK 4.5 million a month: LAK 2,970,000 a year.
Your all-in bill is about LAK 498 million, or 22.1% of your salary. A quick check: above LAK 65 million a month, your tax is 25% of your monthly salary minus LAK 5,625,000.
Specialists working in sectors promoted under the investment law get a 5% rate. That depends on your employer's investment approval, so ask before you sign.
Other income: flat rates on the gross amount
Apart from salary, most personal income in Laos is taxed at a flat rate on the whole amount, with no deduction for costs. The main rates under Article 38 are:
10%: dividends, rent, interest on loans made outside the banking system, buying and selling online, carbon credits, and commission, consulting and other service fees.
5%: royalties and other intellectual property income, lottery wins over LAK 10 million, gifts and prizes over LAK 5 million, construction and repair services, and sports and performance fees above the minimum wage.
2%: the sale price of shares, the sale price of land and buildings, inheritances outside close family, and sales of goods and services by individuals with income over LAK 100 million a year.
1%: sales of farmland for farming.
Note that the 2% on shares and property is charged on the sale price, not the gain. A sale at a loss still pays it.
The payer usually withholds the tax. If nobody does, you declare and pay it yourself within 15 days (Article 43).
Freelancing in Laos
An independent professional who hasn't registered a business, such as a consultant or agent, pays a flat 10% of each fee for commission, consulting and other services. Since the 2025 law, this income no longer goes through the annual reconciliation on the 0% to 25% scale, so the 10% is the end of it: US$10,000 on US$100k of fees. (Unregistered sales of goods or other services over LAK 100 million a year pay 2% of turnover, but consulting fees are named separately at 10%.)
A registered business pays profit tax instead: 20% of net profit, or 5% for a micro-enterprise, which must keep accounts. And the tax is the easy part: foreigners need a visa and permit that let them work (see below).
Crypto, investments and pensions
Is crypto taxed in Laos? Article 33 lists the kinds of personal income that are taxed, and crypto isn't on it. Neither is a general capital gain. But the list ends with "other income" set by the government from time to time, and buying and selling online is taxed at 10% of revenue. There's no official guidance on crypto, so treat regular trading with care.
Pensions: exempt under Article 34(3), with no limit to Lao pensions.
Bank interest: interest on bank deposits, government bonds and approved funds is exempt (Article 34(12)). The law doesn't say whether foreign banks count.
Shares: dividends are taxed at 10% and sales at 2% of the price, with no limit to Lao shares. Shares listed on the stock market are exempt (Article 34(4)).
There's no wealth tax. There's no separate inheritance tax either: inheritances within close family (including parents, parents-in-law, grandparents, spouses, children, stepchildren, siblings and grandchildren) are exempt, and other heirs pay 2% income tax on what they receive.
Social security
Do expats pay social security in Laos? Yes, if they're employees. The Lao Social Security Organisation runs one scheme for enterprise employees under the Social Security Law (No. 54/NA of 2018), and its English guide covers foreign migrant employees too.
Employee: 5.5% of insured pay.
Employer: 6%, for a total of 11.5%.
Ceiling: insured pay is capped at LAK 4.5 million a month, so the employee share is at most LAK 247,500 a month (about US$11). That's the ceiling in the most recent ceiling notice on the organisation's website, in force since 1 January 2017.
Leaving: a foreign employee who finishes their contract and goes home gets a lump sum of one and a half months of average insured earnings for each year of contributions.
The scheme covers health care, sickness, maternity, work injury, pensions and unemployment. There's also a voluntary scheme.
👉 Lao Social Security Organisation: social security for the enterprise sector (English guide)
Double tax treaties
Does Laos have double tax treaties? Yes, but only a small network, mostly with its neighbours in Asia. We couldn't find an official Lao list of treaties in force, so we don't give a count. Partner tax authorities confirm two:
Thailand: signed 20 June 1997, in force since 23 December 1997, according to Thailand's Revenue Department.
Singapore: listed as in force by Singapore's tax authority, IRAS.
There's no treaty with the UK, so the Lao rules apply in full and you rely on UK rules for relief from Lao tax.
👉 Thailand Revenue Department: double tax agreements, including Laos
👉 IRAS: Singapore's treaty with Laos
👉 GOV.UK: the UK's tax treaties (Laos isn't listed)
Living in Laos long term
Laos has no digital nomad visa. The eVisa is a tourist visa only, valid for a single entry and a 30-day stay. For a longer stay you need a visa tied to a purpose:
Investor visa (NI-B2 or I-B2): for shareholders and managing directors of a company registered in Laos, and their families. It's valid for 12 months (up to 60 months with investment promotion privileges), with a stay permit card renewed each year. Investors with a government concession of 10 years or more can get a 3 to 5-year card.
Labour visa (LA-B2): for employees, with a work permit and a quota approved for your employer.
A visa doesn't change the tax rules: the 183-day rule applies whatever visa you hold.
👉 Lao eVisa: frequently asked questions
👉 Lao Trade Portal: visa for investors (NI-B2 or I-B2)
👉 Investment Promotion Department: visas and stay permit cards for investors
Who is Laos good for?
How does Laos compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules and the all-in cost including social security, at LAK 22,500 to US$1.
☑️ Who is Laos good for? Tax ratings for expats in 2026
Expat profile | Laos rating | Why |
|---|---|---|
Employees | Moderate (Excellent with the 5% specialist rate) | About 22.1% all-in on a US$100k salary (LAK 2,250 million): income tax of LAK 41.25 million a month on the 0% to 25% scale, plus 5.5% social security on insured pay up to LAK 4.5 million a month. A 5% rate for specialists in promoted sectors depends on the employer's investment approval, so we don't count it. |
Freelancers (self-employed) | Excellent | 10% of your fees if you work as an unregistered independent professional: consulting and other service fees are taxed at a flat 10%, with no annual top-up on the scale under the 2025 law. That's exactly on the Excellent line. Through a registered business, profit tax is 20% (Moderate). |
Retirees | Excellent | About 3.3% on a US$40k foreign pension plus US$20k of investment income, in the worst case: pensions are exempt, and if the US$20k is dividends they're taxed at 10%. Interest on bank deposits is exempt. There's no inheritance tax for close family; other heirs pay 2% income tax on what they inherit. |
Crypto gains | Good | The Income Tax Law lists the kinds of personal income it taxes, and crypto isn't one of them. But the government can add other income by decision, and buying and selling online is taxed at 10% of revenue, so regular trading carries risk. There's no official guidance. |
Investment income | Good | About 7% on a US$1m portfolio with 4% income and 4% realised gains, if the income is dividends (10%) and the gains come from selling shares (2% of the sale price; we assume you sell US$80,000 of shares to realise US$40,000). Bank deposit interest is exempt. Dividends and sales of shares listed on the stock market are exempt too, which could take it lower. There's no wealth tax. |
Digital nomad visa | Moderate | No digital nomad visa, and the eVisa is a 30-day tourist visa. The practical long-stay route is to set up a company and hold a 12-month investor visa (NI-B2) with a stay permit renewed each year. Poor is arguable. |
Filing and deadlines
The tax year is the calendar year.
Salary: your employer withholds tax and files it by the 20th of the following month.
Annual summary: individuals with taxable income in Laos summarise their income and the tax paid and file it by 31 March of the following year, so by 31 March 2027 for 2026.
Other income: dividends, rent and similar income are declared and paid within 15 days of payment, by the payer or by you.
Tax number and payment: quote your taxpayer identification number on every declaration and pay through the National Treasury or a bank in Laos. If the annual summary shows more to pay, pay it by the deadline on the payment order.
👉 National Assembly: laws in force, including the Income Tax Law 2025 (in Lao)
Frequently asked questions
Does the 183-day rule apply to everyone in Laos?
No. It applies to foreigners who work in Laos but are paid from abroad: they pay Lao income tax if they live in Laos more than 183 days in the year, continuously or not. If a Lao employer pays you, tax is withheld from your first month with no minimum stay.
What are the income tax rates in Laos in 2026?
Salary is taxed monthly: 0% up to LAK 2.5 million, then 5%, 10%, 15% and 20%, and 25% above LAK 65 million a month. These rates come from the amended Income Tax Law No. 88/NA of 2025, which took effect in 2026.
Does Laos tax foreign income?
Residents are taxed on income from Laos and abroad, but pensions and bank deposit interest are exempt. Dividends are taxed at 10% of the amount and sales of unlisted shares at 2% of the price, and the law doesn't limit these to Lao sources.
How are freelancers taxed in Laos?
If you work as an unregistered independent professional, commission, consulting and other service fees are taxed at a flat 10% of the fee, with no annual top-up on the scale. A registered business pays profit tax at 20% of net profit, or 5% for a micro-enterprise.
Do expats pay social security in Laos?
Employees do. The employee pays 5.5% and the employer 6% of insured pay, capped at LAK 4.5 million a month. Foreign employees who finish their contract and go home get a lump sum based on their years of contributions.
Does Laos have a tax treaty with the UK?
No. Laos has a small treaty network, mostly in Asia, including Thailand (in force since 1997) and Singapore. Without a treaty, you rely on your home country's rules for relief from Lao tax.
Where to go next
👉 Best countries for freelancers
Important information
This article is general information and does not constitute tax, legal, immigration or financial advice, and does not create a client relationship. Tax outcomes depend on travel history, income sources, treaty status and the law applying to the relevant year. Rates, thresholds and regimes change, and some measures described may be proposed rather than enacted; this article reflects our understanding as at the date of publication. Obtain advice from a suitably qualified professional before acting or refraining from action.
