taxsystemoflaopdr.docVIP

TAX SYSTEM OF LAO PDR Personal Income Tax Who is Liable? Pursuant to the article 55 of the Tax Law No.04/NA, date 19 May 2005: Scope of Income Tax and Income Tax Obligations: Organizations, individuals or legal entities whether Lao, [resident] aliens, foreigners, including apatrids[,] generating income in the Lao PDR in accordance with the provisions of the Article 56 of the Tax Law No.04/NA, date 19 May 2005 must pay income tax to the state budget. A resident of the Lao PDR who works abroad for less than 180 days and who earns income has the duty to declare and pay income tax in the Lao PDR if that person is exempt from having to pay income tax abroad. Lao employee working in embassies, consular offices or international organizations abroad must declare and pay income tax in accordance with the regulations of the Lao PDR. Foreign persons working in Lao PDR who receive their salaries abroad must pay income tax in Laos if they reside in Laos for more than one hundred eighty days in [any] tax year, unless there is a separate agreement between the government of the Lao PDR and the relevant party. According the article 14 of Foreign Investment No.11/NA, 22 October 2004: Foreign employees working in a foreign investment enterprise must pay personal income tax at the rate of ten percent (10%) of their total income to the Lao Government, except employees of a company with which the Lao Government has signed a double taxation agreement. Income subject to tax: Income from salaries , general labor wages, bonus, position and title honoraria, annual allowance, allowance related to broad of directors meetings of a company and other benefits received in cash or in kind; Income from movable property such as: distribution of dividends or other benefits to the partners or shareholder of a company, profit from the sale of shares, interest income from loans, guarantee fees received according to a contract or other binding obligations except when there is a separa