Laos vs China
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฑ๐ฆ Laos โ Provincial & District Taxes
Laos's 18 provinces and Vientiane Capital have provincial tax departments that administer national taxes locally, with some authority over land and building taxes. The Tax Department under the Ministry of Finance sets all national rates. Provincial governments retain a share of collected taxes for local expenditure. Laos has significant hydropower, mining (potash, gold), and tourism revenues. The country has faced severe debt difficulties since 2022 and is in debt restructuring with Chinese creditors. A VAT was introduced in 2010.
๐จ๐ณ China โ Provincial, Municipal & Surcharge Taxes
China's 34 provincial-level regions vary in social insurance rates (employer contributions: ~16โ23% depending on province). Cities impose Urban Maintenance & Construction Tax (1โ7% of VAT paid). Education surcharges add 3โ5%. Local governments levy land use taxes by city tier. Free Trade Zones often have preferential 15% corporate rates.
Laos vs China: Key Tax Differences (2026)
๐ฐ Income Tax: ๐จ๐ณ China has a higher top income tax rate (0โ24% vs 3โ45%). ๐ฑ๐ฆ Laos is more favourable for high earners.
๐ VAT/Sales Tax: China has a higher consumption tax (10% vs 6โ13%).
๐ข Corporate Tax: ๐ฑ๐ฆ Laos offers a lower corporate rate (20% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ฑ๐ฆ Laos taxes investment gains at a lower rate (10% vs 20%), benefiting investors.