Introduction to
Laos tax planning guide

Moving to Laos as an expat offers a peaceful pace, stunning natural beauty, and a low cost of living—making it an ideal destination for retirees, teachers, NGO professionals, and digital nomads.



In this guide, we’ll walk you through everything you need to know about relocating to Laos from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations. 



TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.

TAX SYSTEM

HOW YOU’RE TAXED IN Laos

Laos follows a territorial taxation model. You will pay tax on local sourced incomes only, irrespective of your resident status.

Resident
Local Income
Foreign Income
Non-Resident
Local Income
Foreign Income
RESIDENCY

YOUR RESIDENT STATUS IN Laos

You’ll be considered tax resident if you satisfy any of the following criteria:
Physical presence

if you spend more than 183 days in Laos during any 12 month period.

HIGHEST RATE

INCOME TAX IN Laos

Residents are subject to progressive tax rates and the highest rate of tax levied on employment income and self employment income is 25%.
Global comparison
56%
World highest
25
%
Laos
0%
World lowest
OTHER TAXES

PERSONAL TAXES IN Laos

Asset tax

Tax on property and share sales

Wealth tax

Tax on value of owned assets

Death tax

Tax on assets passed to heirs

Social tax

Tax to contribute to state welfare

 * It is recommended that you review your affairs and structure accordingly so that you do not end up creating an unexpected tax charge and paying more tax than necessary.
INTERNATIONAL TAX

DOUBLE TAXATION AGREEMENTS IN Laos

If you receive incomes overseas while you are living in the Laos, you may find that the source country, as a starting point, continues to tax the income.

Double taxation agreements may remove the source country’s taxing right and thus, enable you to receive incomes tax free globally.

At present, Laos has 11 double taxation agreements signed.

Global comparison
140
World highest
11
Laos
0
World lowest
COMPLIANCE

TAX OBLIGATIONS IN Laos

What is the deadline to file tax returns and settle tax liabilities?
The tax year starts on 1 January and ends on 31 December.
What is the deadline to file tax returns and settle tax liabilities?
The deadline to file your tax return is 31 March following the end of the tax year. The deadline to settle the tax bill is 15 days from the date the Laos tax authority raises the tax assessment.
Do you need to make advance payments of tax?
No you will not be required to make advance payments of tax.