The Ministry of Finance has issued an additional Notification (No. 1061/MOF, dated 22 April 2020) providing taxpayers with an exemption from penalties for late filings and payments of taxes as follows:
- Exemptions from penalties of 0.1% of the tax due for each day of delay and the LAK 500,000 for late filings and payments of taxes as provided for in Article 73 of the Income Tax Law, Article 38 of the Excise Tax Law and Article 60 of the VAT Law for enterprises that have not filed and paid the taxes for April, May and June 2020;
- The tax filings and payments for the month of April and May 2020 must be made by the end of June 2020 and the tax filing and payment for June 2020 must be made in accordance with the laws and regulations (e.g. salary income tax, by 20th July 2020);
- For companies that have not filed and paid their taxes from January 2020 will be exempt from the penalties of 0.1% of the tax due for each day of delay and the LAK 500,000 for late filings and payments of taxes. This deferral is provided that such companies complete the filings and payments of taxes by the end of May 2020 and provide details of tax filings and payments for each month for the purpose of a tax audit;
- The tax filing and payment in Nos. 1, 2 and 3 above do not apply to the conditions for VAT deductions and VAT refunds;
- Companies that have already paid penalties prior to this Notification will not be entitled to any exemptions from the penalties and the penalties paid will not be refunded;
- The tax authorities at the central and local levels will monitor, adjust and amend the TaxRIS system to support the above.
As always, please stay safe during this time and let us know if you have any questions or queries on any of the above.
We will continue to provide regular updates on the latest COVID-19 related tax developments in the Lao PDR.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
Partner & Head of Regional Tax Practice