Amended tax laws discussed

Keeping two books and paying off the tax collector(s) are the key to
doing businesses in Laos...

Joe

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Amended tax laws discussed

A CONFERENCE on the new amendments to Lao tax law was held at the Lao
International Trade Exhibition and Convention Centre (Lao ITECC) last
week to
ensure that tax officials and business people are aware of the changes
and how
they will affect the collection of tax, particularly for businesses, in
the
country.

During the conference, Chansi Phosikham, the Minister of Finance, spoke
to the
assembled attendees about the changes and the effect they will have on
local
businesses.

He said that the business tax has been simplified and rather than three
rates
there are now only two. The new rates are five and 10 percent. The tax
threshold for small and medium enterprises has also been raised from
1.2 million kip per year to 2.4 million kip per year. The high
interest tax rate has been reduced from 45 to 35 percent.
Additionally, income tax has also been amended. For those who earn less
than 1.5 million kip per month, the tax rate will drop from 300,000 kip
to 200,000 kip.

At the conference certificates of congratulation were also presented to
23
business owners who were substantial contributors to tax revenues in
the
2003-2004 financial year.

.