Want to setup a company? This article will educate you on the tax laws for a LLC which is the most common company structure in Laos.

Laos taxes corporate worldwide income, whether it is accrued onshore or offshore. The headline approximate tax rate for offshore income, from our research, but seek professional advice, is 24%. Laos may not have exemptions to bring in income earned outside the borders. Laos corporate income effective tax rate is 24%, ranking 98th overall with regards to CIT globally.

The valued added tax rate in Laos is 10%, which ranks Laos as 47th overall in terms of value added tax rate worldwide. In terms of other taxation, an employer will contribute 6.00% to the equivalent of a social security fund and an employee will contribute 5.50%. The overall complexity of the tax system is low. This is measured by average time to comply with a country's labor tax requirements is as it is 42hours. Contributing to this is the number of yearly labor tax payments, which is 5 in LA.

Thin capitalization standards are not in play. Thin capitalisation refers to any type of laws on given company with respect todebt-to-asset ratios. Dividents paid by resident companies to other resident companies are subject to a final withholding tax of 10%. Dividends received from foreign entities are subject to corporate income tax at the standard rate. Dividends are payments of company earnings, determined by the board, to a class of its shareholders. Dividends can be issued as cash payments, shares of stock, or other property. Capital Gains from the sale of shares are subject to 10% tax. Capital Gains of shares listed in a security exchange market are exempted. Other capital gains are subject to a 5% tax rate. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 10%. Which means that the relevant tax authorities expects companies to withhold 10% of interests paid to non-residents. The dividends withholding tax rate is 10%. Which means that the relevant tax authorities expects legal entities to withhold 10% of dividends remitted abroad. The royalties withholding tax rate is 5%. Which means that the tax authorities expects resident entities to pay tax on at least 5% on royalty payments made to non-residents.
There is no known tax on wealth in Laos. There are no known inheritance taxes in LA. There is a land tax. There are commonly used research and development breaks on taxation in this country.

The above is not tax or legal advice for your company's circumstances. Incorporations.io can refer you to a tax advisor in Laos who can give you the proper advice and help you need. Click incorporate now if you are in a hurry, or press the free consultation button above.