Finance Ministry Suspends & Waives Tax Payments

Source: Vientiane Times

The Ministry of Finance, on behalf of the government, has issued an instruction on the suspension and waiver of income tax payments as well as postponement of the payment of the annual road tax for 2021.

The measures are intended to ease the financial hardship currently being experienced by individuals, businesses and members of the public due to the Covid-19 outbreak, which has resulted in widespread loss of income.

The ministry issued the instruction on May 28 in relation to the Prime Minister’s Order No. 15/PM and a notice from the Prime Minister’s Office, advising the postponement of income tax payments by those who earn less than 5 million kip a month, in both the public and private sectors. People who earn less than 5 million kip will be allowed to defer tax payments for the months of April, May and June.

Those who earn more than 5 million kip a month will be given a 10 percent discount on tax payments.The government hopes that this offer of leniency will ease the economic impacts of the pandemic and lessen the severity of the burden on families and businesses.

At the same time, the ministry has extended the final day for the payment of road tax from March 30 to June 30. Those who pay the tax after this date, from the start of July until December 31, will be fined 0.1 percent per day of the total value of the annual tax payment, in accordance with the rules on road tax payment.

People who had already paid this fine before the Prime Minister’s Office issued a notice on May 20 can collect a refund at vehicle registration offices from April to June.Central and provincial tax offices have been advised to return previously collected fines to taxpayers immediately, in accordance with a notice issued by the Tax Department in 2019.

In addition, the government, together with the private sector, is discussing other cuts in taxes, customs duty and other charges in order to help businesses cut costs during this unprecedented crisis.