Last updated: 24 Jan 2012
Taxation
Laos applies five main kinds of taxation:
- turnover tax
- excise tax
- profit and income tax
- minimum tax and charges
- service fees
Taxes on profits are set at 20 per cent on net profits for all foreign business enterprises under the Foreign Investment Law (compared to 35 per cent for Lao businesses). Enterprises making a loss pay a minimum tax at a flat rate of one per cent of gross revenues. Administrative fees of five per cent ad valorem are paid on purchases of equipment and materials. Turnover tax rates are five per cent or 10 per cent.
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OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.
Extractive Industries Transparency Initiative
The Extractive Industries Transparency Initiative (EITI) is a voluntary mechanism which promotes and supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.
The EITI is supported by governments, industry, and non-government organisations around the world. The Australian Government supports the EITI and encourages Australian companies operating internationally to comply with its recommendations.