Month: April 2020

Instruction on the conditions and measures for businesses to re-open during COVID19 in Lao PDR

21 April 2020

Instruction on the conditions and measures for businesses to re-open during COVID19 in Lao PDR

The Lao National Taskforce Committee for COVID-19 Prevention and Control issued the Instruction on Conditions and Measures for Business Sectors able to Operate Business Activities during the COVID-19 Pandemic Period No. 031/TC dated 21 April 2020 (the “Instruction”) in order to advise on guidance and measures for the re-opening of certain enterprises in Lao PDR. Nine specific conditions and six strict measures have been provided for by the taskforce in order for enterprises to re-open and commence operations upon the inspection of the Taskforce and its approval.

For further information please feel free to contact us to understand how this may apply to your company in Lao PDR at Wishing everyone well and safe during this period.

Positive Change in Response to Covid-19

13 April 2020

Positive Change in Response to Covid-19

Companies and businesses are facing unprecedented challenges in adapting to work amid the global Covid-19 pandemic. Remote work and communication has rapidly developed into the norm and forced businesses to consider their crisis response and modify their operations.

During this constant and challenging period of change, there are a number of things that all companies and businesses, no matter the industry, location or size, can do to support a positive response to the current global situation and safeguard their future.

  • Understanding your obligations at law

More now than ever before it is important that employers understand their legal obligations to their employees, including freelance contractors and frontline workers.

In the event that an employment contract does not address what happens to employees’ entitlements in the event of a suspension of operations or downturn in trade, it is important that you act swiftly to reach agreement between you and your employees to ensure that you are not in breach of your obligations under Lao labour law.

In the event that your company or business is continuing to operate, either remotely or onsite, it is important that you protect the health and safety of your employees. In Laos, the Ministry of Labour and Social Welfare and other relevant government authorities have issued, and continue to issue, guidelines that employers must follow in response to the Covid-19 pandemic or risk penalties.

MPA Lawyers can assist in ensuring you are meeting your employment law obligations and support you and your employees during this uncertain period.

  • Risk mitigation

Understanding contractual obligations, termination clauses and relief measures that may effect your company or business at this time will ensure that you can position your company or business to mitigate any risk or exposure that may arise and support a positive response to the Covid-19 pandemic.  

In the event that you need to enter into or terminate an existing contract, it is important to consider whether the contract contains a force majeure or pandemic clause and the scope and operation of such clause.

Companies that are making decisions abruptly in response to the developing situation, need to be aware of their obligations to shareholders and ensure that they are acting in accordance with their obligations at law to avoid any unforeseen consequences in the future. For example, if a company’s corporate documents only provide for votes to be made in person or do not provide for the Director’s powers in the event of an emergency situation, such as a pandemic, it is important that the necessary steps are taken to protect the company’s interests.

Our team is experienced at facilitating remote solutions and support to our clients within the Lao PDR and across the globe. Reach out to us today should you require assistance in responding to the Covid-19 pandemic and safeguarding your interests for the future at

Notification on the Implementation of the Income Tax Exemptions based on the policies and measures to reduce the impact from Covid-19

10 April 2020

Notification on the Implementation of the Income Tax Exemptions based on the policies and measures to reduce the impact from Covid-19

The Notification on the implement of tax treatment as provided by the Decision on policy and measures to reduce the impacts of COVID-19 disease to the Lao PDR economy (the “Notification“) No. 1027/MOF dated 10 April 2020 was issued today by the Government of Lao PDR under the Ministry of Finance.

Under the Notification, employees working in both public and private sectors in Lao PDR shall be provided with personal income tax (“PIT“) exemptions during the months of April, May and June of 2020. Employees who earn less than 5,000,000 LAK within a respective calendar month during April, May or June will be exempt from paying any PIT, whereas employees who earn more than 5,000,000 LAK will be entitled to deduct their taxable income by 5,000,000 LAK in order to calculate their PIT payment obligation pursuant to Article 39 of the Income Tax Law No. 67/NA, dated 18 June 2019 (“Income Tax Law“).

Further, exemptions shall be applied to the income tax obligations on micro-enterprises as defined by Article 29(2) of the Income Tax Law and any enterprises which have paid tax in advance, may deduct such amount against the tax payable in the months of April, May and June 2020.

Lump-sum PIT obligations or fixed rate taxes as agreed with the Government of Lao PDR shall not be exempt under the Notification by the Minister of Finance.

It is always recommended to consult your intended business activities in Lao PDR with a legal advisor. Please do not hesitate to contact us should you require our assistance to establish a Lao PDR business entity at



Click one of our representatives below to chat on WhatsApp or send us an email to

× How can we help you?