Presentation on theme: "LAO PDR TAX SYSTEM 1.Personal Income Tax 2.Corporate Income Tax/Profit Tax 3.Excise Tax 4.Tax Treaties 5.Tax Assessment 6.Appeal and Dispute Resolution."— Presentation transcript:
LAO PDR TAX SYSTEM 1.Personal Income Tax 2.Corporate Income Tax/Profit Tax 3.Excise Tax 4.Tax Treaties 5.Tax Assessment 6.Appeal and Dispute Resolution 7.Conclusion and Challenge.
LAO PDR TAX SYSTEM 1.Personal Income Tax Resident employee: progressive rate 5 - 25%; Foreign employee: single rate: 10%; Immovable Property and Movable Capital: 5 -15%.
LAO PDR TAX SYSTEM 2. Corporate Income Tax/Profit Tax: General Rate on Tax Law: 35%; Foreign Investment Promotion Law: Zone 1: 7 years exemption and then rate 10% onwards; Zone 2: 7,5% for 3 years and then rate 15% onwards; Zone 3: 10% for 2 years and then rate 20% onwards; (Zone 1 has littleness infrastructures)
LAO PDR TAX SYSTEM 3. Excise Tax: The Excise Tax is belong to the Lao Tax Law; Rate applied from 5 – 90%; Excise Tax from importation is a custom’s revenue collection;
LAO PDR TAX SYSTEM 4. Tax Treaties: Thailand, Vietnam, China, Korea Republic, Kuwait -Signed: Malaysia, Brunei, Russia, Myanmar, DPR Korea. -Negotiating: Indonesia, Singapore, Luxemburg.
LAO PDR TAX SYSTEM 5. TAX ASSESSMENT Payment of Personal Income Tax: Income from Salary and Wage Monthly before 15 th ; Income from Immovable Property 10 days from the date of receipt; Income from Movable Capital 10 days from the date of receipt;
LAO PDR TAX SYSTEM 5. TAX ASSESSMENT(Cont) Payment of Corporate Income Tax
LAO PDR TAX SYSTEM 6. TAX APPEAL AND DISPUTE RESOLUTION(Cont ) Dispute Resolution and enforcement steps from Tax liabilities: 1.Re-education/Warning; 2.Subject to Fined(5 – 100%); 3.Public announcement; 4.Court of Justice dispute.
LAO PDR TAX SYSTEM 6. TAX APPEAL AND DISPUTE RESOLUTION National Assembly; Prime Minister Office; Ministry of Justice (or Courts); Ministry of Finance; Tax Department; Local Tax Authorities. (Present, we have no specific Tax Court). APPEALAPPEAL DISPUTE/RESOLUTIONDISPUTE/RESOLUTION
LAO PDR TAX SYSTEM 7. Conclusion and Challenge: Conclusion: 1. Lao PRD has no specific Tax Court; Enforcements are mainly re-education, Warning /fine and still promotion (especially SME) ; 2. Personal Income Tax and Corporate Income Tax rate are not the same rate among domestic and foreign entity. 3. Tax Treaty’ issue (decision making, HR, budget)..
LAO PDR TAX SYSTEM 7. Conclusion and Challenge(Cont) Challenge: 1. Tax education and enforcement; 2. Tax payer information; 3. VAT Implementation(legislation, collection, deduct, refund and budget); 4. Tax Law 2005 reform and modernize Tax administration; 5.Tax exemption implementation; 6. Many specific CIT from: - Concession Agreement such as: Hydropower Projects, Plantation - Mining agreement; - Foreign Investment Promotion Law; 7.HR, English skill, IT and equipments;