Laos Capital Gains Tax Guide 2026

Overview — Capital Gains in Laos

Laos does not have a standalone capital gains tax. Instead, capital gains are treated as ordinary income under the Tax Law. For individuals, capital gains are included in taxable income and subject to progressive PIT rates (0–25%). For companies, capital gains are included in taxable profits and subject to CIT at 20%. A special 2% tax applies specifically to the transfer of immovable property, which is classified as an income tax on transfer rather than a capital gains tax. This is a simpler regime compared to countries with separate CGT systems.

Immovable Property Transfer — 2%

The transfer of immovable property in Laos is subject to a 2% tax, classified as income tax on transfer. Key features:

• Rate: 2% of the property value (based on official land price schedule)
• Classification: Income tax on transfer (not a separate capital gains tax)
• Payable by: The transferor (seller)
• Payment: At the time of property registration with the land office
• Basis: Official land price determined by provincial authorities

This 2% tax is a final tax on the transfer of immovable property. It is separate from other taxes such as CIT for corporate sellers or PIT for individual sellers. No additional capital gains tax applies beyond this 2% for immovable property transfers.

Other Capital Gains

Capital gains from assets other than immovable property are treated as follows:

• Individuals: Gains from the sale of shares, securities, or other assets are included in ordinary income and taxed at progressive PIT rates (0–25%)
• Companies: Gains from the sale of assets, shares, or investments are included in taxable profits and subject to CIT at 20%
• Micro-enterprises: Subject to CIT at 5% on gains included in taxable profits

There are no specific exemptions or holding period rules for capital gains in Laos. The gain is simply added to the taxpayer's ordinary income in the year of realisation.

Calculation of Gain

For assets other than immovable property, the capital gain is calculated as the difference between the selling price and the acquisition cost, less allowable costs. Allowable deductions may include acquisition costs, legal fees, and improvements. If the acquisition cost cannot be reliably documented, the Tax Department may apply a deemed value. For immovable property, the 2% tax is simply applied to the official land price value, not to a calculated gain.

Filing and Payment

For immovable property transfers, the 2% tax is paid at the time of registration. For other capital gains, the gain is declared as part of the taxpayer's annual income tax return. Companies include capital gains in their semi-annual and annual CIT filings. Late payment attracts penalties under the Tax Law.

FAQs

Is there a separate capital gains tax in Laos?

No, Laos does not have a separate capital gains tax. A 2% income tax on transfer applies to immovable property, and other capital gains are included in ordinary income.

How is capital gains tax calculated on property?

The 2% tax is calculated on the official land price of the property at the time of transfer. It is a fixed rate on the value, not on a calculated gain.

Does Laos tax gains from share sales?

Yes, gains from the sale of shares are included in ordinary income and taxed at PIT rates (individuals) or CIT rates (companies).

Can capital losses be offset against other income?

Capital losses may be offset against capital gains in the same year, subject to the general tax rules. Loss offset rules are defined under the Tax Law.

Disclaimer

This guide provides general information about Laotian capital gains taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Laotian tax advisor or the Tax Department of Lao PDR for advice specific to your situation. InvestmentKit does not provide tax advice.