At present, Laos implements a unified national tax system, and foreign enterprises and individuals pay the same tax as domestic enterprises and individuals in Laos. There are six taxes in Laos, among which indirect taxes include business tax and consumption tax, and direct taxes include profit tax, minimum tax, income tax, formalities and service fees. With the approval of the Lao National Assembly, the reform of the value-added tax system was implemented from June 5438+10/October 65438 +0, 2009.
Main taxes and tax rates:
Business tax means that individuals, legal persons or institutions must pay business tax in proportion (except for some duty-free goods) when buying, selling and providing services in Laos. The payment ratio is generally 5% and 10%, but the export goods are exempt from business tax.
Income tax The Lao government stipulates that wages, labor costs, movable and immovable property income, intellectual property rights, patents and trademarks must pay income tax. The specific tax rate is 300,000 kip, 300,000 -654.38+0.5 million kip is 5%, 6,543.8+0.5 million kip, 4 million kip and 4 million kip is 654.38+00%. Foreigners are taxed at 10% of total income.
Profit tax is levied at 35% of taxable profit (over 60 million kip).
Shareholders of dividend tax company must pay dividend tax at the end of the year, and the tax rate is 10%.
Minimum tax production units are required to pay the minimum tax every year, that is, 0.25% of the annual income.
Value-added tax consumers need to pay an additional value-added tax of 10% of the product input price when purchasing products.
◆ Tariff policy
In February 1994, the Lao government promulgated and implemented the Unified System and the Catalogue of Import Tariff Commodities, in May 2005, the Customs Law, and in October/2006, the Decree on Commodity Import and Export Administration, which made a series of regulations on customs management. Among them, the Customs Law has made relevant provisions on restrictions on import and export commodities, prohibited types, customs declaration, tax payment, warehousing, delivery of goods, customs clearance, customs document management, and customs declaration form review.
Laos tariffs are divided into five different tax rates: autonomous tariffs, agreed tariffs, preferential tariffs, preferential tariffs and zero tariffs.
◆ Preferential investment tax policies
Laos gives foreign investment preferential policies in taxation, system, measures, provision of information services and convenience.
In terms of preferential tax policies:
① Imported raw materials, semi-finished products and finished products sold in Laos can enjoy exemption and reduction of import duties, consumption tax and business tax. That is, the import of raw materials certified and approved by relevant departments can be exempted from import duties and business tax; For importing semi-finished products that Laos has but the quantity is insufficient, import duties and business tax can be halved according to the highest normal tax rate within five years; For spare parts certified and approved for import by the relevant departments in Laos, but the quantity is insufficient or the quality is unqualified, the tariff and consumption tax on spare parts can be levied according to the tax rate in the ASEAN Unified Tariff Catalogue.
Imported raw materials, semi-finished products and finished products sold abroad after processing can enjoy exemption from import and export duties, consumption tax and business tax.
③ Equipment and machine parts imported with the approval of the Ministry of Planning and Investment of Laos can be exempted from import duties, consumption tax and business tax.
(4) Fixed assets that Laos does not have or have but fail to meet the standards after being approved by the Ministry of Planning and Investment of Laos or relevant departments may be exempted from the first import tariff, consumption tax and business tax.
⑤ Vehicles (such as trucks, bulldozers, trucks, buses with more than 35 seats and some professional vehicles) approved for import by the Ministry of Planning and Investment of Laos or relevant departments may be exempted from import duties, consumption tax and business tax.
Regional preferential policies: The Lao government gives preferential policies for investment according to the actual conditions in different regions: According to the provisions of the Laos Investment Law (draft), Laos' preferential policies for foreign investment mainly include the following aspects:
Profit tax concession: investment in the first-class area (remote area without auxiliary facilities) can be exempted from profit tax for 4 ~ 10 years according to the project category; Investment in second-class areas (areas with certain auxiliary facilities) can be exempted from profit tax for 2 ~ 8 years according to the project category; According to the project type, the investment in the three types of areas (areas with good auxiliary facilities) can be reduced or exempted from profits and taxes 1 ~ 6 years.
Other tax benefits: if the profits are used to expand reinvestment, the profits tax for the next year can be reduced or exempted; Equipment, raw materials and vehicles required for import projects may be exempted from import duties according to relevant regulations; Export products processed with imported materials can be exempted from export duties.
Preferential treatment for investment projects: The Lao government has adopted preferential policies for investment projects for some industries with priority development. For example, if you invest in hospitals, schools and other projects, you can enjoy preferential rent for the use of the site and an extra five-year profit and tax reduction policy.
In addition, enterprises can also get the following four benefits:
(1) During the period of profit tax reduction and exemption, enterprises can also get preferential treatment of exemption from the minimum tax;
(2) If the profits are used to expand the approved business, the annual profits tax shall be exempted;
(3) Raw materials directly used for the production of vehicle parts and equipment that are not available or insufficient in Laos, and semi-finished products used for export processing may be exempted from import duties and taxes;
(4) Export products are exempt from customs duties.
For imported raw materials and semi-finished products used for import substitution processing or assembly, preferential tariff reduction and tax reduction can be obtained; Special economic zones, industrial zones, border trade zones and some special economic zones shall be implemented in accordance with the special laws and regulations of each district.