Coverage limitation up front
Lao tax law is published primarily in Lao. The Ministry of Finance Tax Department portal carries notices and forms in Lao with only sporadic English material [1]. The Income Tax Law No. 67/NA of 2019 governs current personal taxation, but the most accessible English text remains the WTO translation [2]. Most of what follows reflects practitioner summaries cross-checked against that translation. Coverage of pensions, capital gains and gift taxation in particular is thin; the relocator-level position is what is reliably stated below.
Residency
You are a Lao tax resident in any year in which you spend 183 days or more in Laos, counted in a 12-month rolling period from first arrival, or otherwise have a permanent home in Laos [3,2]. The day-count is the dominant test in practice.
Income tax brackets, monthly
Lao Personal Income Tax (PIT) applies to monthly salary income on this progressive scale, in Lao kip [3]:
- 0 to 1,300,000 LAK/month: 0 percent
- 1,300,001 to 5,000,000: 5 percent
- 5,000,001 to 15,000,000: 10 percent
- 15,000,001 to 25,000,000: 15 percent
- 25,000,001 to 65,000,000: 20 percent
- above 65,000,000: 25 percent
The annual equivalents are 15.6 million LAK (around 700 EUR), 60 million, 180 million, 300 million, 780 million respectively. The top rate of 25 percent is comparatively low for the region.
Foreign-source income
Lao residents pay tax on worldwide income. Foreign employment income, foreign pensions, and foreign investment income earned by a Lao resident fall within the Lao PIT base in principle [3]. Foreign tax paid on the same income may be credited, capped at the Lao tax otherwise due, but administrative practice for foreign retirees with no Lao employer is limited. Non-residents are taxed only on Lao-source income.
Pension income
The Income Tax Law treats domestic pensions paid by the Lao social-security scheme as exempt or out-of-scope. Foreign pensions paid to a Lao resident retiree have no explicit treatment in the publicly available English text. In practice they fall within the worldwide-income net at the PIT brackets if assessed, but the Tax Department does not routinely audit foreign-pension retirees [3]. Treat this as uncertain. Confirm locally before relying on the position.
Capital gains
Lao Income Tax Law does charge capital gains, generally at 2 percent on the sale price of real estate, 10 percent on the sale of unlisted shares or business interests, and lower rates on listed securities and bonds where applicable. Foreign-share gains of a resident sit in the worldwide base in principle but, as above, are not routinely assessed in retiree cases.
Inheritance and gift tax
There is no separate inheritance or gift tax in Laos. Property transfers including by inheritance are subject to stamp/registration duties.
Worldwide investment income
Lao-source bank-deposit interest paid to individuals is exempt from PIT. Dividends paid to individuals incur 10 percent withholding. Royalties and other passive income also incur withholding at varying rates set in the Income Tax Law. Foreign dividends and interest received by a Lao resident fall within the residence-basis framework as discussed above.
Treaty status with IE, GB, US, DE, FR
Laos has a small DTA network, around 12 to 14 treaties, focused on neighbours and major Asian trading partners (China, Thailand, Vietnam, Malaysia, Singapore, Korea), plus Luxembourg in Europe [4]. As of May 2026 Laos has no comprehensive double-tax treaty with any of the five origin countries:
- Ireland: no DTA.
- United Kingdom: no DTA.
- Germany: no DTA.
- France: no DTA.
- United States: no DTA.
Where no treaty applies, relief from double taxation depends on each side's domestic foreign-tax-credit rules. A UK or Irish state pension would be taxable in the source country under domestic law and, in theory, again in Laos if Laos chose to assess it. Source-country credit for Lao tax paid is the only protection in practice.
Filing notes
The Lao tax year is the calendar year. Salaried employees have PIT withheld monthly through payroll; those with multiple income sources or self-employment income must file annually. File in Lao at the local Tax Office. You need a Lao taxpayer identification number (TIN), issued through the local Tax Office.
Not tax advice
This is a relocator-level summary based on the best available English sources; the binding texts are in Lao. Authoritative coverage of personal taxation of foreign retirees is weak. Engage a Lao tax adviser before assuming any of the above applies to your circumstances [3].