Laos has officially raised the monthly income exempt from personal income tax from LAK 1.3 million (USD 58.8) to LAK 2.5 million (USD 113.5), giving lower-income workers a larger tax-free allowance while leaving tax rates unchanged.
SoutheastAsians & Pacific Islanders
The revised personal income tax system, promulgated by a presidential decree on 6 August 2025, takes effect this month and applies to salaries, wages, bonuses, allowances and other employment income, according to the Ministry of Finance.
Under the new system, monthly earnings of up to LAK 2.5 million are exempt from income tax. Income above that threshold will continue to be taxed progressively at rates ranging from 5 percent to 25 percent, with each rate applying only to the portion of income within the relevant bracket.
Previously, workers began paying income tax once their monthly income exceeded LAK 1.3 million.
With the current regulations, If a person earning LAK 6 million (USD 272) a month would pay no tax on the first LAK 2.5 million. The next LAK 2.5 million would be taxed at 5 percent, while the remaining LAK 1 million would be taxed at 10 percent.
Farming and Property Transfer
The revised regulations also update tax rates for several other categories of income.
Transfers or sales of agricultural land for farming will be taxed at 1 percent of total income. A 2 percent rate applies to income from share sales, property transfers, land-use rights, and business activities including agriculture, handicrafts, trade and services where annual income exceeds LAK 100 million (USD 4,528).
Lottery prizes above LAK 10 million (USD 454), gifts or awards exceeding LAK 5 million (USD 227), intellectual property income, qualifying sports and entertainment earnings, and construction or repair services will be subject to a 5 percent tax. Dividends, profit distributions and other shareholder benefits will continue to be taxed at 10 percent.
The changes come as Laos seeks to strengthen public finances while easing pressure on households after several years of high inflation and currency volatility. Official figures show the economy expanded by 5 percent in the first half of 2026, while annual inflation slowed to 7.4 percent in June, according to data presented during the government’s expanded cabinet meeting on 25 June.
https://www.tourismlaos.org/wp-content/uploads/2026/07/VAT-tax.jpg6271200Soutsada Xaphouvonghttps://www.tourismlaos.org/wp-content/uploads/2025/05/Lao-Simply-Beautiful-.webpSoutsada Xaphouvong2026-07-02 10:31:502026-07-02 10:32:02Laos Raises Tax-Free Income Threshold Under New Personal Income Tax Rules
Seven villagers remain trapped inside a remote cave in Xaysomboun province, six days after entering the site, as Lao authorities and international rescue teams continue efforts to reach them.
The Lao government has still not released an official public statement on the incident.
The group, from Long Chaeng district, reportedly entered the cave on 20 May to search for gold and hunt wildlife, activities that remain common in remote parts of Laos but are rarely discussed publicly.
According to local accounts, the villagers initially avoided posting about the emergency online out of fear of possible backlash from authorities. Only after repeated rescue attempts failed did they seek help through social media, sending a video via Facebook Messenger to a local influencer.
The influencer later shared the footage publicly with a caption asking for urgent help, saying villagers and district officials were trying to pump water out of the cave to rescue the seven people trapped inside.
The video showed rescuers working near the flooded entrance.
Thai Rescue Team
The story quickly spread onto Thai social media, and a 26-member Thai rescue team reportedly traveled to Xaysomboun on 23 May to assist. Local reports also said Chinese specialists may have joined the operation.
The cave is believed to be more than 100 meters deep, with a narrow entrance and steep rocky chambers. One member of the original group reportedly managed to escape to the fourth level, roughly 40 to 50 meters from the entrance, before warning others that water levels were rapidly rising following heavy rainfall.
The remaining seven villagers were trapped for nearly three days before the situation became publicly known.
Village authorities have since mobilized soldiers, police officers, medical teams, district officials, and local residents to support the rescue operation. Water pumps continue working at the site, although ongoing rain has complicated efforts.
Illegal mining and wildlife hunting in remote Lao provinces often remain hidden from public view, and in cases like this, social media increasingly becomes the first channel through which emergencies emerge.
Families are still waiting for news, while there’s no official update yet on the condition or survival of the trapped villagers. Rescue efforts remain ongoing.
On 25 May, Laos and Cambodia signed a joint framework agreement in Phnom Penh to launch a feasibility study on a cross-border power grid interconnection.
The goal is to advance key regional energy priorities under the ASEAN Plan of Action for Energy Cooperation (APAEC) 2026-2030.
State-owned utilities from both countries signed the agreement, with the ASEAN Center for Energy co-signing and coordinating the World Bank-funded initiative.
Researchers will assess technical standards, legal frameworks, and transmission strategies needed to enable electricity trade between the two neighbours.
The ASEAN Power Grid targets a 30 percent renewable energy share in total primary energy supply and 45 percent in installed power capacity by 2030, built around three objectives: strengthening regional energy connectivity, enhancing energy security, accelerating decarbonisation, and advancing inclusive energy development.
The Laos-Cambodia agreement adds a southern corridor to an already expanding regional grid. In late April, Laos and China activated a new 500 kV transmission line capable of carrying up to three billion kilowatt-hours annually from Oudomxay, including output from Laos’ largest solar farm, a 1,000 megawatts (MW) project generating approximately 1.65 billion kilowatt-hour per year.
The link made Laos the first country to trade renewable power directly into China’s electricity grid.
Laos also supplies clean energy well beyond its immediate neighbors.
The Laos-Thailand-Malaysia-Singapore Power Integration Project has transmitted Lao hydropower to Singapore via Thailand and Malaysia since 2022, the first multilateral cross-border electricity trade among four ASEAN countries. The project now operates at full expanded capacity, doubling its total to 200 MW, with Laos as the primary upstream supplier.
Laos Raises Tax-Free Income Threshold Under New Personal Income Tax Rules
Laos has officially raised the monthly income exempt from personal income tax from LAK 1.3 million (USD 58.8) to LAK 2.5 million (USD 113.5), giving lower-income workers a larger tax-free allowance while leaving tax rates unchanged.
SoutheastAsians & Pacific Islanders
The revised personal income tax system, promulgated by a presidential decree on 6 August 2025, takes effect this month and applies to salaries, wages, bonuses, allowances and other employment income, according to the Ministry of Finance.
Under the new system, monthly earnings of up to LAK 2.5 million are exempt from income tax. Income above that threshold will continue to be taxed progressively at rates ranging from 5 percent to 25 percent, with each rate applying only to the portion of income within the relevant bracket.
Previously, workers began paying income tax once their monthly income exceeded LAK 1.3 million.
With the current regulations, If a person earning LAK 6 million (USD 272) a month would pay no tax on the first LAK 2.5 million. The next LAK 2.5 million would be taxed at 5 percent, while the remaining LAK 1 million would be taxed at 10 percent.
Farming and Property Transfer
The revised regulations also update tax rates for several other categories of income.
Transfers or sales of agricultural land for farming will be taxed at 1 percent of total income. A 2 percent rate applies to income from share sales, property transfers, land-use rights, and business activities including agriculture, handicrafts, trade and services where annual income exceeds LAK 100 million (USD 4,528).
Lottery prizes above LAK 10 million (USD 454), gifts or awards exceeding LAK 5 million (USD 227), intellectual property income, qualifying sports and entertainment earnings, and construction or repair services will be subject to a 5 percent tax. Dividends, profit distributions and other shareholder benefits will continue to be taxed at 10 percent.
The changes come as Laos seeks to strengthen public finances while easing pressure on households after several years of high inflation and currency volatility. Official figures show the economy expanded by 5 percent in the first half of 2026, while annual inflation slowed to 7.4 percent in June, according to data presented during the government’s expanded cabinet meeting on 25 June.
SoutheastAsians & Pacific Islanders
source: https://laotiantimes.com/2026/06/30/laos-raises-tax-free-income-threshold-under-new-personal-income-tax-rules/
Seven Villagers Remain Trapped in Xaysomboun Cave Amid Alleged Illegal Gold Mining
Seven villagers remain trapped inside a remote cave in Xaysomboun province, six days after entering the site, as Lao authorities and international rescue teams continue efforts to reach them.
The Lao government has still not released an official public statement on the incident.
The group, from Long Chaeng district, reportedly entered the cave on 20 May to search for gold and hunt wildlife, activities that remain common in remote parts of Laos but are rarely discussed publicly.
According to local accounts, the villagers initially avoided posting about the emergency online out of fear of possible backlash from authorities. Only after repeated rescue attempts failed did they seek help through social media, sending a video via Facebook Messenger to a local influencer.
The influencer later shared the footage publicly with a caption asking for urgent help, saying villagers and district officials were trying to pump water out of the cave to rescue the seven people trapped inside.
The video showed rescuers working near the flooded entrance.
Thai Rescue Team
The story quickly spread onto Thai social media, and a 26-member Thai rescue team reportedly traveled to Xaysomboun on 23 May to assist. Local reports also said Chinese specialists may have joined the operation.
The cave is believed to be more than 100 meters deep, with a narrow entrance and steep rocky chambers. One member of the original group reportedly managed to escape to the fourth level, roughly 40 to 50 meters from the entrance, before warning others that water levels were rapidly rising following heavy rainfall.
The remaining seven villagers were trapped for nearly three days before the situation became publicly known.
Village authorities have since mobilized soldiers, police officers, medical teams, district officials, and local residents to support the rescue operation. Water pumps continue working at the site, although ongoing rain has complicated efforts.
Illegal mining and wildlife hunting in remote Lao provinces often remain hidden from public view, and in cases like this, social media increasingly becomes the first channel through which emergencies emerge.
Families are still waiting for news, while there’s no official update yet on the condition or survival of the trapped villagers. Rescue efforts remain ongoing.
source: https://laotiantimes.com/2026/05/25/seven-villagers-remain-trapped-in-xaysomboun-cave-amid-alleged-illegal-gold-mining/
Laos, Cambodia Advance ASEAN Power Grid
On 25 May, Laos and Cambodia signed a joint framework agreement in Phnom Penh to launch a feasibility study on a cross-border power grid interconnection.
The goal is to advance key regional energy priorities under the ASEAN Plan of Action for Energy Cooperation (APAEC) 2026-2030.
State-owned utilities from both countries signed the agreement, with the ASEAN Center for Energy co-signing and coordinating the World Bank-funded initiative.
Researchers will assess technical standards, legal frameworks, and transmission strategies needed to enable electricity trade between the two neighbours.
The ASEAN Power Grid targets a 30 percent renewable energy share in total primary energy supply and 45 percent in installed power capacity by 2030, built around three objectives: strengthening regional energy connectivity, enhancing energy security, accelerating decarbonisation, and advancing inclusive energy development.
The Laos-Cambodia agreement adds a southern corridor to an already expanding regional grid. In late April, Laos and China activated a new 500 kV transmission line capable of carrying up to three billion kilowatt-hours annually from Oudomxay, including output from Laos’ largest solar farm, a 1,000 megawatts (MW) project generating approximately 1.65 billion kilowatt-hour per year.
The link made Laos the first country to trade renewable power directly into China’s electricity grid.
Laos also supplies clean energy well beyond its immediate neighbors.
The Laos-Thailand-Malaysia-Singapore Power Integration Project has transmitted Lao hydropower to Singapore via Thailand and Malaysia since 2022, the first multilateral cross-border electricity trade among four ASEAN countries. The project now operates at full expanded capacity, doubling its total to 200 MW, with Laos as the primary upstream supplier.
source: https://laotiantimes.com/2026/05/26/laos-cambodia-advance-asean-power-grid/