Govt Proposes Income Tax Revisions To National Assembly
Source: Vientiane Times
The Ministry of Finance has revised several articles of the Law on Income Tax, to enable businesses to operate more smoothly.
Addressing the National Assembly on Saturday, Minister of Finance Mr Bounchom Ubonpaseuth asked members to consider changes to articles 14, 16, 18 and 73.
In Article 14, which outlines the calculation of profit tax, the ministry has defined the rise in the rate of profit tax at 30 percent for the electricity and mining sector.
In Article 16, which spells out how profit tax may increase or decrease, the ministry has defined the rate of decrease to clarify the issue and broaden sources of income.
The ministry has proposed three different rates, including 0.1 for microenterprises and participation in the Value-Added Tax (VAT) system, put forward by Mr Bounchom during a session chaired by NA Vice President Mr Chaleun Yiapaoher.
In addition, the ministry suggests a rate of 3 percent over a three-year period for small-sized enterprises and participation in the VAT system and 3 percent rate over a three-year period for medium-sized enterprises and participation in the VAT system.
The ministry also defined a drop in profit tax for mining and electricity businesses from the present rate of 35 percent stated in Article 16 to 20 percent under the general rate outlined in Article 15. This is because the ministry will increase the fee paid for the use of natural resources or exit tariff, Mr Bounchom told Assembly members.
In Article 18, relating to unpermitted expenditure to be expenditure on taxes, the ministry has defined add the content into the point of number 10 that have many quantity and high value that reasonable into the number 11 and defined add the content into the end of the paragraph of the article.
With regard to permitted expenditure to be expenditure on taxes in the electricity and mining sector, the ministry will issue regulations to implement.
In Article 73, on revised measures, the ministry has revised by add the measure on unpaid fine fee to define the operation measure on suspend the projects and business, withdraw the registered and investment certificates or processing at the law, Mr Bounchom said.
This article also states that business will be reminded of offences before a fine is issued and those that don’t pay the fine will have the money removed from their deposit account.