Notification № 0256/MoF.TD, dated 15 October 2013 and Notification № 1090/MoF.TD, dated 9 December 2013 provides that, enterprises who are preparing accounts in accordance with the Lao Accounting System (“LAS”) must now prepare and file quarterly accounting statements.
When will the new quarterly tax reporting requirements to be implemented:
The notifications will be implemented from 1 January 2014.
What quarterly accounting statements must be submitted to the tax authorities?
The notifications list the following accounting statements to be filed quarterly:
A balance sheet, income statement, trial balance and other accounting documents as provided for in the Accounting Law. The accounting statements must be filed together with the payment of profit tax, and the minutes of the any shareholders’ meetings in respect to the payment of dividends. The quarterly accounting summaries must be certified by the Managing Director of the enterprise.
The tax authorities will keep such quarterly accounting statements to compare with the annual accounting statements of the enterprises.
What are the filing dates for the quarterly accounting statements?
The quarterly accounting statements must be filed with profit tax payments in accordance with Article 38 of the Amended Tax Law as follows:
10th March (following year)
What penalties apply to companies who do not comply with quarterly tax reporting rules?
In cases where enterprises do not comply with the submission of quarterly accounting statements, they will be subject to penalties in accordance with Article 85 and 86 of the Accounting Law. Furthermore, the tax authorities are permitted to apply measures as determined by the Tax Law.
What are the penalties under the Accounting Law and Amended Tax Law?
Article 85 of the Accounting Law prescribes the following penalties for business entities for non-compliance with the Accounting Law:
Delays in reporting:
- 1st infringement: Education on civic duties;
- 2nd infringement: Fines of 3,000.000 Kip;
- 3rd infringement: Fines of 5,000.000Kip;
- 1st infringement: Fines of 5% of the annual sales turnover;
- 2nd infringement: Fines of 10% of the annual sales turnover;
- 3rd infringement: Legal proceedings;
– Partner, Regional Tax Practice Group, Jack Sheehan
– Partner, Senesakoune Sihanouvong