Laos vs Germany
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
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.
๐ฉ๐ช Germany โ Trade Tax (Gewerbesteuer) & Church Tax
Germany's 16 Bundeslรคnder apply federal income tax rates uniformly โ no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7โ17% effective. Church tax (Kirchensteuer) of 8โ9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.
Laos vs Germany: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฉ๐ช Germany has a higher top income tax rate (0โ24% vs 14โ45%). ๐ฑ๐ฆ Laos is more favourable for high earners.
๐ VAT/Sales Tax: Germany has a higher consumption tax (10% vs 7โ19%).
๐ข Corporate Tax: ๐ฑ๐ฆ Laos offers a lower corporate rate (20% vs 29%), which can influence business location decisions.
๐ Capital Gains: ๐ฑ๐ฆ Laos taxes investment gains at a lower rate (10% vs 25%), benefiting investors.