IFC, Tax Department simplify tax system
IFC, Tax Department simplify tax system
A member of the World Bank group, the International Finance Corporation (IFC), and the Lao Tax Department are preparing small and medium enterprises for the introduction of new regulations that aim to improve their accounting and invoicing practices as well as enabling them to assess and file their tax returns with ease.
Simplifying taxation is expected to support the growth of business and create jobs in the country.
Around 80 small and medium enterprises from the manufacturing, services and trade sectors attended their first workshop yesterday, which was organised by the IFC and the Lao Tax Department.
The workshop set out to explain the new regulations and gather feedback from the private sector.
Mr Keovisouk Darasane, a small business owner in Vientiane said, “As a small business owner, it's very important for me to understand any changes to the tax system.”
“We hope the new system will improve the transparency of tax regulations and make it easier for us to pay our taxes as we need help in improving our bookkeeping and accounts.”
As part of the General Tax Law, which the Lao government introduced in 2012, the new regulations aim at simplifying tax filing procedures for small and medium enterprises with an annual turnover of more than US$6,250.
Small businesses will be assessed under a less administratively cumbersome and presumptive tax system, which calculates tax liability, based on annual turnover and standardised tax rates.
Director of the Legal Division at the Lao Tax Department Mr Khamphenh Bouphavong said, “Changes to the tax filing system will simplify the administrative procedures for smaller businesses to file their taxes.”
“Businesses can tell us what works and what we need to improve on, which will help fast-track the rollout of the new system.”
Since 1998, IFC has helped the Lao government in improving infrastructure, streamline business start-up procedures and simplify its tax system in order to make the country a better destination for investment.
Head of the IFC's Office in Laos Mr Phongsavanh Phomkong said, “We have been making significant progress on tax reform in Laos.”
“We would like the latest consultation with the private sector to be as inclusive and participatory as possible and to make sure that all the stakeholders are well-informed.”
vientiane times
