VDB Loi Lao Tax Update: Flash news on Amended Tax LawMay 20, 2016
Amended Tax Law No. 70/NA adopted 15 December 2015 was published in the Lao Official Gazette of 9 May 2016 and will come into force on 24 May 2016.
The new law was issued while Laos is facing a looming budgetary crisis. The new Government is trying to find ways to meet its financial priorities by increasing its profit tax, income tax and excise tax revenue.
From our reading of it, the new law will not impact any of the tax and financial incentives previously granted to investors under agreements executed between the government and investors. The main changes under this new law are:
- Determination of non-taxable revenue
- Clarification of and additions to the list of deductible and non-deductible expenses
- Additions to capped deductible expenses
- New filing deadline for the last quarter’s profit tax return
- New deemed profit rates for entities that do not fully comply with Lao accounting standards
- Modification and introduction of new income tax rates on sales of shares and transfers of land- and building-use rights
- New excise tax rates
More details of the changes can be found here.
Did you know that VDB Loi Laos is licensed to provide compliance accounting services to complement our tax compliance services?
VDB Loi is a network of leading law and advisory member firms and affiliated companies that comprises eight partners and over 100 lawyers and advisors, with offices in Cambodia, Indonesia, Laos, Myanmar and Vietnam, and representatives in Singapore and Tokyo. We provide the highest quality solutions for transactions and taxation.
You can find more information on our Laos office here.
This is single-publication.php