Lao PDR – New Law on In­vest­ment Pro­mo­tion In­tro­duces Ma­jor Changes for For­eign In­vestors

Thai-American Business (T-AB) Magazine - - Legal Updates - For more in­for­ma­tion con­tact Tilleke & Gib­bins at dino. s@ tilleke. com.

The Law on In­vest­ment Pro­mo­tion No. 14/ NA be­came ef­fec­tive in Laos on April 19, 2017, and re­places the Law on In­vest­ment Pro­mo­tion No. 02/ NA, dated July 8, 2009. The new law aims to pro­vide a more seam­less process to fa­cil­i­tate do­mes­tic and in­ter­na­tional in­vest­ments in Laos, and has there­fore in­tro­duced a num­ber of sub­stan­tive changes: pro­moted sec­tors el­i­gi­ble for profit tax ex­emp­tion rang­ing from 4 to 15 years have been com­pre­hen­sively listed; joint ven­tures be­tween sta­te­owned en­ter­prises and the pri­vate sec­tor, as well as Pub­lic- Pri­vate Part­ner­ships ( PPP), have been for­mal­ized within the Law; VAT and tar­iff ex­emp­tions for the im­por­ta­tion of ve­hi­cles or raw ma­te­ri­als that are not avail­able in Laos are pro­vided; min­i­mum cap­i­tal re­quire­ments for gen­eral busi­ness ac­tiv­i­ties have been re­moved; and trans­fer/ re­mit­tance of funds to for­eign in­vestors is ex­plic­itly al­lowed. In­vestors with ex­ist­ing con­trac­tual terms un­der the pre­vi­ous in­vest­ment law are now per­mit­ted to ap­ply for ben­e­fits un­der the new law by sub­mit­ting their pro­pos­als to rel­e­vant au­thor­i­ties within 120 days of en­act­ment.

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