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Laos vs Japan
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฑ๐Ÿ‡ฆ Laos
vs
๐Ÿ‡ฏ๐Ÿ‡ต Japan
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“24%
24% top; debt restructuring affecting fiscal space
No change
5โ€“45%
Basic deduction increase for low earners
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% stable
No change
8โ€“10%
No rate change; digital services tax under review
No change
Corporate Tax Rate
Corporate Tax Rate
20%
20%; SEZ incentives maintained
No change
~30.62%
Global Minimum Tax applies to large MNCs
No change
Capital Gains Tax
Capital Gains Tax
10%
10% maintained
No change
20.315%
Expanded NISA (tax-free investment) ongoing
No change
Social Security & Payroll
Social Security / Payroll
~11.5%
NSSF expansion limited by fiscal constraints
No change
~28.5%
Coverage expansion to part-time workers ongoing
No change
State, Regional & Local Taxes

๐Ÿ‡ฑ๐Ÿ‡ฆ 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.

๐Ÿ‡ฏ๐Ÿ‡ต Japan โ€” Prefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ‘็จŽ) at a flat 10% on top of national income tax โ€” 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Laos vs Japan: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฏ๐Ÿ‡ต Japan has a higher top income tax rate (0โ€“24% vs 5โ€“45%). ๐Ÿ‡ฑ๐Ÿ‡ฆ Laos is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Both countries have comparable consumption tax rates (10% vs 8โ€“10%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฑ๐Ÿ‡ฆ Laos offers a lower corporate rate (20% vs 30.62%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฑ๐Ÿ‡ฆ Laos taxes investment gains at a lower rate (10% vs 20.315%), benefiting investors.

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