🇱🇦 How tax works
in Laos.
2026 · National income tax guide
The calculation, explained.
The annual employment schedule has six bands, starting with LAK30m at zero.
Business profit tax applies separately to independent contractors and sole traders. Social contributions and personal deductions are excluded.
Doctors: employment and independent practice
The Laos comparison is an ordinary resident employment scenario. We have not yet verified a doctor-specific independent-practice regime for this country. Do not apply Indonesia’s NPPN 50% here or enter clinic turnover as salary. Practice deductions, professional contributions and mixed income require additional local research.
Tax brackets · LAK
Each rate applies only to the income inside that band.
| Taxable income slice | Rate |
|---|---|
| 0 – 30,000,000 | 0.0% |
| 30,000,000 – 60,000,000 | 5.0% |
| 60,000,000 – 180,000,000 | 10.0% |
| 180,000,000 – 300,000,000 | 15.0% |
| 300,000,000 – 780,000,000 | 20.0% |
| Above 780,000,000 | 25.0% |
Your worked example
Based on your €100,000 annual gross salary estimate, equivalent to LAK 2,498,034,986.
- 1. Annual input
- LAK 2,498,034,986
- 2. Custom deductible expenses
- − LAK 0
- 3. Modeled allowance / base deduction
- − LAK 0
- 4. Modeled taxable base
- LAK 2,498,034,986
| Taxed portion | Rate | Tax |
|---|---|---|
| LAK 30,000,000 | 0.0% | LAK 0 |
| LAK 30,000,000 | 5.0% | LAK 1,500,000 |
| LAK 120,000,000 | 10.0% | LAK 12,000,000 |
| LAK 120,000,000 | 15.0% | LAK 18,000,000 |
| LAK 480,000,000 | 20.0% | LAK 96,000,000 |
| LAK 1,718,034,986 | 25.0% | LAK 429,508,747 |
- 5. Modeled tax credits (capped at tax due)
- − LAK 0
- 6. Included additional tax
- LAK 0
- 7. Income tax
- LAK 557,008,747
- Effective rate = tax ÷ annual input
- 22.3%
- After income tax, before other deductions
- LAK 1,941,026,240
Sources & assumptions
Sources checked 12 October 2026. The schedule's tax year is shown above; checking a source does not make a simplified model a complete payroll calculation.
Assumptions: single, no dependent children, age 30+, full-year resident, ordinary employment income only. No capital gains, dividends, special expatriate relief or double-tax treaty adjustments.