On 1 March 2011, a Presidential Decree on New Rates of Profit Tax, Business Turnover Tax, and Personal Income Tax has been passed, amending the existing tax rates contained in the current Tax Law No 46/OP dated 25 May 2005. Under the new decree, the following changes will be made:

• Business Turnover Tax (BTT) rate of 10%;

• Reduced rate of profit tax for both foreign and domestic invested companies from 35% to 28%; Companies engaged in the manufacture of tobacco products will pay a rate of 30%, of which 2% will be contributed to a tobacco control fund; and

• New personal income tax rates applicable to Lao, foreigners, aliens, and expatriates who generate income in Lao PDR is based on progressive rate from 0% to 28%.