Laos is growing in popularity with international contractors and recruiters due to some major projects in Telecommunications, Oil & Gas and IT. We organise business visas, work permits, local payroll and tax compliance for freelancers, recruitment agents and international companies providing services in Laos. Additionally Laos has a fascinating culture, relaxed lifestyle, great food and a wide range of regional travelling options. If you are thinking of doing an expat assignment in Laos - you've come to the right place!
Foreign contractors will need support to work in Laos as the Work Permit and Taxation Systems for contracting are quite complex. It is important to use experienced local providers for Immigration, Payroll and Taxation to be sure of compliance and reliability. We have partners that will be able to assist you with: Contractors Tax and Work Visas for Freelancers to ensure that you comply with local regulations and maximize your net income.
Our assessed and qualified suppliers will ensure tax and work permit compliance but also that you’re retaining the highest possible net % return on your gross billing as is legally possible. Our services in Laos include:
Tax, Payroll and Employment Solutions for Contractors
Sponsored Work Permits and Business Visas for Contract / Freelance Workers
Self-Employed / Personal Companies
Expatriate Tax specialists
Insurance (Private Health / Travel / Professional Indemnity)
Bank Account Opening
Insurance (Private Health / Travel / Professional Indemnity)
You can reach all our solutions for Laos from these pages.
A London based recruitment consultant had located the perfect candidate for his client, the Laos office of a German investment bank. However the candidate was a foreign national who needed a Work Permit. They needed a local entity to sponsor the work permit, run the local payroll and make sure the contractor was fully compliant. A colleague referred the agency to www.contractortaxation.com and our local partner was able to step into the breach to arrange a Laos Business Visa before the end of the week and then process the Laos Work Permit with the consultant already onsite for training. This meant the assignment was able to start on time and recruiter went on to place 3 more consultants into the project.
One of the most consistently challenging aspects of contracting in Laos is complying with the country’s tax system. Whether you’re a contractor or a permanent employee, you have to pay tax on all of your earnings whilst you’re in the country. As well as paying tax in Laos, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. Do you get double taxation in Laos? It will depend on your nationality and the nature of your assignment in Laos. Getting to grips with the basics of income tax in Laos and understanding your options helps you work out the best way to organise your affairs.
If you’re working in Laos under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Laos for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Laos, but contractors may not be offered this service because of their short stay with each employer.
Anybody who can’t pay their tax in Laos through PAYE is left with the prospect of filing a tax return and doing everything themselves. Do you know much about Laotian Tax Law? Does Laos have a tax treaty with your home country? You will need to find out or find someone who can help! Not only does this eat into your free time, it’s also exceptionally difficult to get the most out of the system. The rules change frequently, so if you’re new to it you may be working on out-dated research and end up paying too much. Income tax in Laos can be a burden, and you need to be sure you are placed in the correct tax brackets.
Contractors in Laos are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Laotian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records). The companies are experts in Laos taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Laotian tax office or tax department directly including processing your tax refund if you are eligible.
We work with numerous umbrella companies in Laos, many of whom are experts in tax and immigration laws. If you have any questions about tax in Laos, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We also have a comprehensive knowledge of the different services they provide, and we can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Laos work permit. Our advice is 100 percent free, and it comes with no obligations. You will be paying taxes in Laos but without the overhead of directly dealing with the Laotian tax authorities. Get in touch with us today for some reliable advice on tax in Laos!
Moving to a new country is never simple. Not only do you have to relocate your entire life, you also have visas to organise, jobs to find and an entire new tax system to familiarize yourself with. When you’re contracting in Laos there are several issues which could arise relating to taxation, and learning what to expect helps you tackle them more effectively. Doing your own taxes might not be the best option, but employers don’t usually work out contractors’ taxes through the pay as you earn (PAYE) system. This means you’re either faced with several hours in administrative hell or will have to find a suitable alternative for dealing with Laos taxation.
One of the most confusing aspects of Laotian tax law is whether or not you’ll still be eligible to pay tax in your home country for the money you earn in Laos. Most countries have agreements in place to guarantee that you don’t have to pay taxes on the same money twice, but you might still have to make some payments in your home country. The rules regarding this aren’t clear, so it’s useful to get advice from experts in Laos taxation.
You might be eligible for some deductions whilst you’re working in Laos, but learning all of the different possibilities is extremely time-consuming. The basic rate of income tax can vary according to your earnings level and circumstances, and there is also public health insurance and social security to worry about. To keep more of your money, it’s useful to find an expert in Laos taxation and business culture in Laos to explain the various possible benefits to you. You might not be eligible for them all, but learning about expat tax deductions is extremely important.
Permanent employees are fortunate because their employers will usually process their Laos income tax through the PAYE system. If you’re contracting in Laos, you’ll probably have to calculate and make your tax payments yourself. You’ll have to read up on tax laws, fill in myriad forms and spend hours hunched over a calculator working everything out. There is an easier way for contractors to pay their income tax in Laos and it almost entirely removes the admin work.
An umbrella company can make organising your income tax in Laos a lot easier for your contract work in Laos. The basic premise is that by processing your wages through them, they technically become your permanent employer. This means that they can handle your taxes through a PAYE system, but you’re not tied to any particular contract or just one client. You work as you ordinarily would, submit your timesheets to them and receive a prompt payment. They’re experts in local tax law, so you’ll also keep more of your earnings.
We work closely with several umbrella companies in Laos, and can help you find one to handle your tax payments for you. We have a detailed knowledge of the specialist services they provide, and we’ll suggest the best options for your needs. If you just have a question about Laos taxation, we’ll ask the experts for an up-to-date and reliable answer. If you’re a contractor in fields such as telecommunications, business analysis, IT project management, software development, testing or oil and gas, we can help you keep more of your earnings. Our service is completely free, and you’re under no obligation. Contact us today for help with Laos taxation!
We provide Laos tax and payment solutions for contractors and freelance workers. All you have to do is send in your timesheets and expenses.
Expat contractors in Laos generally have the same goals: to retain as much of their income as possible by minimising tax, to be sure that the structure they use complies with local legislation, to get paid as quickly as possible and of course - to keep administrative tasks to a minimum. This allows you to get on with your work and spend your free time enjoying being in a new country.
Our partners have the best Laos tax solutions! CONTACT US NOW
The good news is that Laos is a great place to work and to live. Culturally diverse with a good standard of living for expats. Personal income tax and social costs in Laos can be complicated pendant on your personal circumstances. There may also be implications with tax in your country of origin depending on whether there is a tax agreement between Laos and your home country.
Local bureaucracy can be an administrative nightmare! Unless you work through a structure with a thorough understanding of the local taxation system and people on the ground who can deal with officials, you can suffer greatly due to lack of compliance and low retention rates.
The type of structure available to you will depend on a number of factors:
Length of contract?
Intended length of stay in Laos?
Whether you are married and have dependents (PACS)?
Country of residence of the company you will be working?
All of these factors may play a part in not only how much income tax you will have to pay but of almost equal importance in Laos, your social security payments. Contact us now and provide us with information on your specific situation and with our vetted Contractor Management partners we will ensure that you net the highest % possible of your gross income.
"I got offered a lucrative long term contract in Laos but wasn't sure about my tax situation. A friend pointed me to Contractor Taxation. They helped me understand my options and gave some advice based on my circumstances. I picked a structure that suited me perfectly and it was all sorted out in days!" Toby R, SAP Consultant.
Finding out about the tax rate in Laos is absolutely essential if you’re considering working in the country. The tax system in Laos can be broken down into company tax, income tax, payroll tax and sales tax, and learning about these various components gives you a good idea of how much you’ll be paying during your stay. Laotian taxes are generally variable, so the values included here are just averages. If you want to keep more of your earnings, you should consider using a contractor management company for your income tax in Laos.
Corporate tax or company tax in Laos is the amount taken from the earnings of corporations. If you own a corporation in Laos, you can expect to pay a fixed percentage (we don't have exact figures available currently) from your earnings. The specific rate you receive is dependent on a number of factors, such as the amount your company makes per annum.
Income tax in Laos is charged to individuals, and depending on the company you’re working for you might have to calculate and submit returns yourself. Anybody freelancing or contracting in Laos will probably have to handle their taxes this way. Because individual earnings can be so different, the income tax rates in Laos vary according to your level of income. Unfortunately we don't have up to date income tax rates available at the time of writing.
Payroll tax in Laos is very similar to income tax but it’s paid by your employer as you earn. Social security fees, public health insurance and other deductions are all included in this payment and other deductions in Laos are dependent on your income.
Sales tax in Laos is applied to products you purchase using your already-taxed income. The rate of VAT in Laos (value-added tax) is not available at the time of writing this article but we will update this information soon. Sales Tax usually has several brackets depending on the type of product being purchased. There is nothing you can do about sales tax, but it’s good to know how much is added on to the cost of purchases.
The amount you pay for tax in Laos is heavily dependent on your income, but there are still many courses of action you can take if you have a good understanding of the system. Hiring an accountant in Laos will get you a better rate, but can be pretty expensive in itself. Using a contractor management company is one of the easiest ways to keep more of your earnings. Contractors can use the company as their “permanent” employer but still continue taking contracts freely. The company collect your payments, handle your taxes and then send you the remainder. They’re experts in Laos taxation, so they guarantee that you take home the biggest proportion of your earnings.
We’re partners with numerous contractor management companies in Laos, and we know which ones specialise in the tax system in Laos. If you have any questions, we’ll check with the experts to ensure you receive the best advice. We also regularly help contractors like oil and gas workers, business analysts, IT project managers, telecommunications workers, testers and software developers keep more of their earnings by using a contractor management company. We’ll suggest the best options to you, and can help you determine the best course of action. Our advice is completely free, and you’re under no obligation, so get in touch with us today!
Gaining an understanding of your options for expatriate tax in Laos is absolutely essential to organising your legal affairs if you’re considering working in the country. You obviously want to answer the question how do I pay less tax in Laos. As a contractor, the most important things are keeping more of your earnings and minimising your admin work. Your options for expatriate tax planning in Laos can be split up pretty simply as organising everything yourself, finding an employer who organises things for you or getting professional assistance. Depending on your circumstances you might be classified as "tax free" in Laos where you don't have to register and pay local taxes.
The main problem with sorting out your personal income tax in Laos is that the laws regarding income tax in the country can change regularly. If you’re not familiar with the legislation, you need to do a lot of reading to bring yourself up to speed. You have to learn about the various rules regarding resident and non-resident status, the possibility of still paying tax in your home country, social security, special levies and any tax free allowances that might be available to you as an expat. Realistically, if you’re going to understand it, you’ll need to get assistance from a financial advisor. Then after you finally understand what you’re entitled to and what you’re required to do, you have to spend hours going through the return in intimate detail.
Some employers can handle expatriate taxes in Laos for you, but contractors are unlikely to be offered these services by their clients. If you do find a company that will put you on payroll and handle your taxes on a pay-as-you-earn basis, then you have to do next to nothing to organise your tax affairs. Unfortunately, it’s not usually possible to pick and choose employers based on how they handle employee taxes, and when you’re contracting in Laos you probably won’t even get the option.
There are other possibilities for expatriate tax in Laos. The simplest and most cost-effective solution is to use the services of a contractor management company (or “umbrella” company). They basically become your employer, but only by processing your payments. You still act as a contractor; you’re just technically a full time employee of the company. The companies have a comprehensive knowledge of expatriate tax in Laos, and they handle everything for you. You invoice them for your hours, they calculate and pay your taxes and send your net income on to you. It’s like being on employee payroll without the permanent contract with one company. You can enjoy living and working in Laos whilst minimising the cost and administration.
We’re partners with numerous contractor management companies in Laos, and we have a detailed understanding of the specialist services they provide. If you need advice on expatriate tax in Laos, we’ll run it by our partners to ensure you get up-to-date and reliable advice every time. We pride ourselves on our customer service expertise, the quality of our advice and our rapid response time. If you’re considering using a contractor management company, we’ll be able to suggest the best options to you, and might also be able to help you get your work permit. We regularly help people like software developers, oil and gas workers, business analysts, IT project managers and telecommunications contractors find a contractor management company. Our advice is completely free, and you’re under no obligation.
We have heard of contractors refusing a contract in Laos simply because of the administrative nightmare. This nightmare can turn into a sweet dream with a Laotian umbrella company. Without one, you may find yourself spending all your time on calculating expenses, handling taxes and submitting all necessary forms. This means less time for work and finding new clients. We help contractors such as business analysts, software developers, gas and oil workers, IT project managers and many more partner with reliable umbrella companies to manage their administrative tasks and payments. We'll even help you find one to sponsor your work permit if necessary.
The purpose of an umbrella company is to manage administrative tasks, paperwork and payments for you. This frees you to focus on the job and client. Technically, the umbrella company becomes your employer, but you still have the same freedom as an independent contractor. Instead of you receiving payment directly from the client and managing taxes and fees yourself, the umbrella company receives the payment, subtracts all taxes and fees and then pays the contractor. This ensures you always comply perfectly with all taxes and other legalities in Laos. If you feel overwhelmed by the tax system contractors face in Laos, let an umbrella company save you hours of frustrating time and effort.
Taxes can greatly reduce your final earnings if you don't fully understand the system. Umbrella companies are experts in the tax system in Laos, helping you get the highest possible earnings from every contract. All rules and regulations are complied with. The end result for you is less taxes and administrative hassle. You manage your timesheet and a list of expenses. As soon as the umbrella company receives the payment from your client, you are paid. In most cases, the company handles all client payment collecting, equalling more time for you to spend on your work.
If you're a contractor that wants to spend less time trying to calculate and pay taxes and chasing payments, an umbrella company is perfect for you. A company is available for all situations, regardless of the salary range or contract term. By using an expert team to manage your payments, you receive the highest possible portion of your income. Umbrella companies mean never worrying about issues with local tax authorities. You will even be given tax receipts and pay slips for your personal records.
In addition to time and financial savings, some umbrella companies will serve as your sponsor for a work permit. The majority of countries require a work permit before you can be paid for any work completed within the country. Without an umbrella company, you are forced to find a sponsor through a local company in that country. For independent contractors, this can be extremely difficult. To make it less stressful when becoming a contractor in Laos, an established umbrella company will sponsor your work permit.
Even with all the benefits, you still have to choose the right umbrella company to meet your individual needs. This can be a time consuming process in itself. We can make this process much easier, freeing up your time for obtaining new contracts. We provide you a selection of options that best meet your situation. You then choose between umbrella companies with different payment structures, diverse specialisations and varying services.
Our goal is to provide you with knowledgeable, solid advice that is easy to understand. Our professional team seeks out the perfect umbrella company based upon your situation and needs. With our extensive database of service providers, we are able to match you with the services you require. Since we already understand the services and details about each company, we can explain which ones are the most beneficial to you. You are free to ask questions at any time about specific companies or umbrella companies in general.
We believe in helping contractors save money. As such, we offer this valuable service at absolutely no cost to you. If you are considering becoming a contractor in Laos, don't hesitate to contact us immediately. We will provide you with a reliable overview of your options and guide you to the best umbrella company. Once you've found the right one, sign up and lose the stress of calculating taxes, managing payments, collecting payments and finding a work permit sponsor. You should be focusing on your work, not admin.
Immigration is one of the primary concerns for anybody hoping to start working in Laos. Permanent employees will find it easy to get their Laos work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer. The Laotian work permit is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Laos is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.
Umbrella companies in Laos “employ” contractors, but don’t make any decisions about your workload, clients or anything to do with your day to day operation. They simply process your payments by billing and collecting money from your clients, calculating your taxes and sending you a net wage. This is equivalent to the PAYE (pay as you earn) system employed by many companies, and it makes handling your tax in Laos a lot simpler. The fact that they technically become your employer helps you get your working visa in Laos with minimal fuss.
As your permanent employer, umbrella companies are able to sponsor you for your Laos work permit provided they’re on the register of approved sponsors. Many different companies offer this service, because it makes contracting in Laos infinitely simpler and saves you the hassle of continuous paperwork. Instead of changing your work permit every time you get a new contract, you can just work how you ordinarily would under the same permit. They protect you from the bureaucratic “rain” of legal compliance with the Laotian immigration authorities. They can even deal with the Laotian Embassy directly.
Through their service you may be able to use a business visa to get started quickly and then transition to a work visa in Laos. It depends on your specific Laos visa requirements. Be aware you may have to register for a residence permit in Laos.
Some umbrella companies are specialists in the Laotian tax system. They constantly stay up to date with the legislation and ensure that you get to keep the biggest proportion of your earnings possible. The PAYE system is ideal for most workers because you don’t have to complete any paperwork (aside from submitting your timesheets to the umbrella company) or worry about your taxes in any way (you’ll receive documentation for your records, though). You have a team of experts ensuring that you’re paid promptly and the various requirements for tax in Laos are met.
We work closely with numerous umbrella companies in Laos and we have a thorough knowledge of the different services they provide - especially regarding immigration to Laos. If you’re a business analyst, IT project manager, software developer, tester, telecommunications contractor or an oil and gas worker, we can help you get sponsorship for your work permit and keep more of your earnings by setting you up with an umbrella company. We’ll also answer any questions you have about Laotian visas or the country’s tax law, and we’ll contact the experts directly to guarantee 100 percent accurate advice. This all comes at no charge whatsoever to you and you’re not obligated to take on the services of any company. We’re just here to make your move as stress-free as possible.
Organising Work Permits for Laos can be a difficult process. Our sponsorship partners are specialists in local immigration laws including sponsored contractor work visas for Laos.They are able to sponsor suitably skilled contractors or your employees on Laos Work Permits.The rules are regularly updated to reflect market conditions and government policy. We try to keep our information up to date as much as possible but we rely heavily on our local partners who are the specialists.
If you aren't able to find the information you want on how you can contract in Laos or how to organize Laos Work Visas for your staff please contact us with your circumstances and we can always assist you.
The benefits include:
- full compliance with local immigration laws
- freedom to work with any end client for any duration
- security and comfort of using a long established international market leader
- visa allows for entry of spouse and dependants
- Business Visas and Letters Of Introduction (LOI) if you need to get on the ground quickly
- local salary compliance
- understanding of dual taxation implications through regional offices
Additionally they can offer you excellent tax & financial management advice to ensure you stay on the right side of the authorities whilst keeping the highest possible % of your gross billing. APPLY NOW!
Hamish, a change management consultant from the UK, was offered a lucrative 12 month assignment in Laos working for a consulting company. Neither the recruitment agency based in London, nor the consulting company’s local office was willing to organise a work visa for him and his family.
Luckily, he contacted www.contractortaxation.com and we passed his case on to our local partner in Laos. A full Laos Work Permit was soon in place that would cover him for his 12 month contract and give him the opportunity to work for other end clients after that assignment had finished. Even better, due to our local partners understanding of dual taxation laws and the special regulations for expatriate workers, he was earning more money than he expected.
Before a contractor is legally eligible to work in Laos, they must complete a variety of administrative requirements. Any contract you sign in Laos requires you to pay a tax. For those new to working in the country, it is often difficult to learn how to calculate payments and how to comply with the local employment laws. For any contractor from outside of Laos must also have an employer sponsor them in order to gain a work permit in Laos. We help contractors through all of these issues by matching them with the right umbrella company. We work in a variety of fields such as IT project management, software development, business analysis, oil and gas work and telecommunications.
Before you even consider taking a contract job in Laos, you must have two things first. For contractors living outside Laos, you must obtain a Laotian work permit. The process is slightly more complex as you must first find an employer to sponsor the permit. This means the employer takes full responsibility for your presence in Laos during the contract period. Contractors end up with far more administrative work than those working permanent as in theory new sponsors are needed for each employer change.
Even if you don't need a work permit the main thing you will need is tax advice, including how exactly they are calculated and paid. You may be responsible for paying a tax in your country of origin for your contract in Laos. Before beginning work, you should fully understand your tax obligations in your home country and the Laotian tax system.
Regardless of your country of origin, we are here to help you fully understand the concept of taxes and the process of gaining the appropriate work permit. For contractors who have been offered a contract in Laos, we can help by finding the appropriate umbrella company to handle the complicated administrative tasks.
The majority of problems contractors face when offered a contract in Laos can be simplified by an umbrella company, also known as contractor management companies. These companies are essentially the contractor's employer. They collect all payments from clients, take care of tax calculations and payments, pay social security and any other required fees and cut you a check with the remaining amount. Some umbrella companies even serve as a sponsor for work permits.
Unlike a new contractor, umbrella companies already understand all the details of the local tax system, including complex rules and regulations. Since these companies are tax experts, they ensure you keep as much of your earnings as possible. You still comply with all local laws, but take advantage of all tax benefits you are eligible for.
Umbrella companies require you to submit a timesheet for your Laotian contract. They then subtract all fees and taxes and send you your payment on the same day they receive it. All the contractor is responsible for is telling the company how much they've worked. For record keeping, you receive receipts and pay slips.
For those who need it, umbrella companies offer an added benefit of helping you gain a work permit in Laos. Since they serve as your employer, they make the perfect sponsor. Some smaller umbrella companies do not offer this service, but most of the larger, established ones do. If you are sponsored by your umbrella company, you don't have to worry about changing sponsors for each new contract. This gives contractors the peace of mind they need to focus on work instead of seeking new sponsors.
Our job is to help independent contractors looking for jobs in Laos find an appropriate umbrella company for their needs. Even though you will be considered an employee, you are still free to act as an independent contractor. This means you are able to choose your own contracts, manage how little or much you work and change clients when you choose without the burden of administrative work. We find an umbrella company to handle all the tiresome paperwork so you are free to focus on completing contracts and seeking new clients.
Our extensive database and expert knowledge of the various umbrella companies in Laos ensures we find the most suitable choices for you. Simply tell us what you need and your current circumstances and we do the rest. Trying to choose an umbrella company on your own can be overwhelming, especially with the wide variety available. We are here to share our knowledge and give you advice you can trust and understand. We will help you understand how taxes in Laos affect your contract and how work permit rules affect you.
Contact us at any time to find the right umbrella company or ask for advice concerning anything related to contracting in Laos. We pride ourselves on responding quickly to every enquiry. We believe in helping contractors get the best deal possible. As an added benefit, we do all of this for free.
If you’re hoping to do some IT contracting in Laos, there are a variety of administrative hoops you need to jump through before you get set up. The main things you have to deal with are getting your Laos work permit to comply with immigration laws and sorting out your taxes. It isn’t easy though, because the legislation changes regularly and bringing yourself up to speed with it takes time away from landing new contracts and your work. There are many potential solutions to these problems, and finding out about your options helps you keep more of your money and saves you time.
The most obvious solution to the problems you face when IT contracting in Laos is to do everything yourself. It is possible, but there are a number of obstacles blocking your path. Firstly, if you’re planning on staying in the country after your initial contract expires you’ll have to complete additional paperwork to keep your Laos work permit. You need to be sponsored by your employer during your stay, and most employers can only sponsor you if you’re on their payroll. They are reluctant to do this for high-earning contractors. Additionally if you change contracts you must change sponsors and arranging multiple sponsors just lumbers you mindless admin. After that you have the labyrinthine tax system to contend with, and if you don’t get things right you could end up paying a higher rate and losing earnings.
When you’re contracting in Laos, you’re exposed to the elements. Taxes and immigration procedures become a torrential downpour, leaving you hunched underneath your jacket trying to keep yourself dry. Umbrella companies are there to protect you. They technically become your employer, so you get the benefits of being a permanent employee but still keep your autonomy as a contractor. They’ll “employ” you for the entire time you spend IT contracting in Laos, and your payments will be filtered through them. In the process, your taxes are paid as you earn. Dependent on your circumstances you may be able to use structures which further minimise your tax – the umbrella companies are able to advise you on this.
Getting your Laos work permit is much easier with an umbrella company. As your sole employer they’ll serve as your sponsor during your entire stay, so the paperwork is kept to an absolute minimum. You still take contracts as usual, you just invoice the umbrella company for your hours worked and they collect the payment from your client. This saves you a lot of work in itself, but the biggest benefit of umbrella companies comes with taxation. They’re experts in local tax law, and they’ll ensure you keep the largest proportion of your income possible through the system of taxation in Laos. Plus, you don’t have to do a thing. You’re given a net wage and all the relevant paperwork but with no admin.
We have numerous partners who provide unique collections of services to IT contractors in Laos. Different groups specialise in offering work permits and tax efficient payments, and we can suggest the best options to you. The laws for taxation and work permits in Laos are constantly changing, so getting some expert advice ensures that your move abroad runs smoothly. We don’t charge for our service, and there is absolutely no obligation. We’ll answer any questions you have and give you reliable, friendly and up-to-date information.
Whether you already have a contract in Laos or are currently seeking one, you need to carefully consider the financial regulations before proceeding. While there are numerous ways to handle financial obligations, the right way allows the contractor to avoid the common administrative hassles while still complying fully with all laws, taxes and fees.
A contract in Laos means making a variety of personal arrangements such as living arrangements, transportation and necessary utilities. For longer term contracts, you may even find it necessary to relocate your family which then adds finding the right school for your children. In addition to this, you must learn about cultural differences, language basics and becoming just another member of the local society. Regardless, it is all a lot to handle and leaves little time for laws and finance issues.
As with most countries, Laos has its own financial system, including social security and payroll. Contractors already have their personal lives to consider when contracting in Laos. They also have to learn a completely new financial and employment structure. A single misstep could result in broken laws, penalty fees and even the loss of a contract. Even something as basic as a client invoice that includes sales tax is carefully investigated before being considered compliant with all laws and regulations. Since you have multiple ways to handle contractor taxes in Laos, it is important to weigh the pros and cons of each option.
As a contractor, you may already know about service companies. This type of company works through a limited liability personal company. UK contractors with contracts in the UK often use this option. However, IR35 rules make this more difficult than it once was. For contracting in Laos, it can be extremely challenging to use a UK Ltd company to handle the contract. Since most contractors work solo, it is not worth the expensive accounting and legal advice necessary to abide by all Laotian contracting regulations and laws. Simply registering for social security and local payroll taxes is a complex operation, which isn't exactly practical for a single contractor. If you'd like to know more we have a more detailed analysis of Using your UK Ltd Company in Laos
One practical option for contractors is to set up a local Ltd company in Laos. However, this should only be considered if you are planning to settle in Laos or the desired country on a permanent basis. The directors of any company registered in Laos find themselves burdened by Laotian regulatory compliance requirements. This leaves little to no time to focus on the contract in progress, causing stress and a decrease in income.
Many contractors in the UK likely know about umbrella companies, which are third party companies acting as the contractor's employer. They take care of billing clients, deducting taxes and social security and ensuring the contractor complies with local laws and regulations. The contractor is able to focus on their contract instead of administrative duties. The only downside is the fee for using the umbrella company, which is deducted as part of the contractor's expenses. On the other hand, contractors are paid as soon as the client pays. Along with their paycheck, they also receive records such as payslips and tax certificates. Umbrella companies have quite a bit of competition, so they pride themselves on taking care of their contractors. Contractors benefit by only having to deal with administration on a weekly or monthly basis when it comes to sending in a time sheet and expenses.
You shouldn't be discouraged by the fee associated with using an umbrella company. When you add the cost of all the time lost to handling administrative tasks yourself with a typical limited company, you quickly see the cost savings. Since clients try to maximise their time with contractors, you don't want to waste any on administration. Every minute is valuable. Since you don't have to chase clients yourself, pay for contracts becomes more predictable with the contractor being paid the same day the umbrella company receives the funds.
We understand everything about Laotian umbrella companies. Our second to none expertise guides you to finding the best companies and helping you weigh each provider's specialities, strengths and weaknesses. We start by learning exactly what a contractor wants and needs out of the company. We then introduce them to to a small selection of matching contractor management companies. Our goal is to use our resources and knowledge to save contractors valuable time so they can focus on moving to Laos, gaining new clients and any other preparations they need to make. With all advice and services being impartial and free, contractors have nothing to lose. The only pay we receive is the umbrella company's referral fee.
Umbrella companies in Laos know every single rule and regulation for contractors in the area. As such, contractors save time by not having to learn the complex regulatory compliance laws and tax rules. The more one knows about the rules, the better they can maximise their earnings. An umbrella company works to reduce the tax contractors in Laos pay so they can focus their time on the client.
If you have obtained a contract in Laos, you have likely already researched the best ways to handle the complicated social security and tax regulations. The conclusion is an umbrella company in Laos is the most contractor friendly option. Now we help with the next step - choosing the best Laos umbrella company!
A contractor simply cannot ignore the benefits of an umbrella company in Laos. These companies offer you the best possible earnings, regular cash flow, full compliance with regulations and extremely low administrative overhead. The only problem is selecting an umbrella company that meets all your needs.
Selecting an umbrella company in Laos isn't always as simple as it sounds. There are numerous ones to choose from and each has their own standards and fees. Each one offers different services which may or may not be beneficial for an individual contractor.
The problem becomes even more complicated if you are working through an agency. You must determine how efficient it will be for the umbrella company and agency to work together. It may affect your cash flow and disputes could occur.
In the end, you can select an umbrella company in Laos the slow way or the smart way.
Many contractors may start by researching umbrella companies in Laos. They will categorise their information and compare their options. Each criteria used must be weighed differently. While one service may be important to you, the fees may not balance the benefits.
After this first series of evaluations, the next step is usually calling or meeting with the company. This alone can be terribly time consuming. The only problem is this may not properly represent the umbrella company in Laos. The marketing information provided may actually be better than the company in reality.
In the initial comparison chart, all the different issues involved with selecting an umbrella company aren't evaluated. Items such as the contract length, handling payments, buying property and provisions for family and retirement complicated the decision. Intangible factors must be considered in the final evaluation.
One research method is the use of forums. Since each situation is different, contractors are likely to only receive general or extremely biased information. Obviously, you don't want to share too much personal information. Since you don't personally know other forum members, you cannot fully trust the advice you receive. This only further complicates your evaluations.
One of the reasons a client chooses to hire a particular contractor is due to their expert status. While a contractor may be an expert in their own field, they may not necessarily know much about choosing the right umbrella company. The smart contractor trusts an expert to help guide them towards an umbrella company that solves all their problems. This saves you time and frustration on the slow, imperfect method. An umbrella company expert knows the market and is well versed in even the small details of what a contractor needs, including finding companies that cater to specific sectors.
Expert advisors offer the perfect balance of knowledge and the needs of the contractor to locate the perfect umbrella company. They will even help guide you if you are a contractor working through an agency since not all agencies and umbrella companies play well together.
The smart approach involves working with advisors with extensive experience working with Laotian umbrella companies. The object is to completely eliminate the research and evaluation time for the contractor.
While there are two different approaches to selecting an umbrella company, one is the obvious winner. The first slow, steady approach is time consuming and may still not yield desirable results. The smart approach requires far less effort and yields custom results perfect for individual needs.
We are proud to offer precise, friendly advice. Our years of experience working with umbrella companies, suppliers and contractors have made us the smart solution to choosing an umbrella company in Laos. We never charge our contractors. Instead, we receive a commission from the contractor's umbrella company.
This article explains how certain contractors may be able to work in Laos without paying local taxes. It is normally only high income earners working on short to medium assignments who can take advantage of these structures. You should seek professional advice from an offshore tax specialist – like our partner companies in Laos.
If you live in Laos and work in Laos then you almost certainly will have to pay tax in Laos. However if you don’t live in Laos, for example if you are on a contract assignment, then you may have non-resident status. This can mean you are not liable for local tax in Laos. More about non-residency of Laos.
When you are a non-resident you can be paid 100% of your gross earnings directly into your bank account. There are well established umbrella companies who will write a contract with your client or recruitment agency, invoice them for your earnings and pay you on the same day they receive the funds. You nominate the bank account you wish to receive payment into. Generally an offshore bank account gives the greatest flexibility and discretion. Read more about offshore payments in Laos.
You receive your full earnings to ensure maximum retention. From the point of view of Laos, you are tax free. However you may be liable for tax in the country where you are a tax resident, but this depends on the tax law of that country. Read more about your tax liability in your country of residency or ask us if you want help working out your status.
The easiest way to deal with all these issues is to get paid through an umbrella company specialised in offshore payment in Laos. The umbrella company will review your exact circumstances and explain your payment options as well as how to minimise your tax liabilities. If possible they will ensure you are working in Laos tax free. They will sign a contract with your client or recruitment agency, invoice them and chase payment on your behalf as well as process payments to you. They will also prepare the contract you need to sign with them to receive payments. All you need to do is submit your timesheets and expense reports.
This combines the benefits of a standard umbrella company with a deep understanding of international tax.
Example: A resident of Hong Kong is contracting in Laos on a short assignment. They do not require a work visa or local payroll. Hong Kong residents are not taxed on employment income derived from outside Hong Kong, therefore no personal income tax is payable. The contractor can receive their full gross wage into their offshore bank account. The payments are completely tax free.
Contractors choose to be paid into an offshore account whilst working in Laos because it provides the greatest flexibility and privacy. Banks in well established offshore locations are underwritten by government regulations which means your funds are secure. They are well versed in dealing with international clientele and international transactions. This can make them a better choice than a local bank in Laos. Generally speaking the physical location of your bank doesn’t matter – even if you are working in your home country and fully liable for local tax you can get paid into an offshore account as long as income tax and social security contributions are paid. If you are working in a country where you are non-domiciled then receiving funds outside that country and your home country often has tax benefits in terms of remittance regulations. Furthermore many offshore jurisdictions have laws preventing their banks from disclosing the identity and details of account. If you are a UK national who is non-domiciled in UK and working in Laos if you get paid into the UK your earnings can be classified as remittances into the UK. This incurs a tax liability. In this instance it is better to get paid offshore for your assignment in Laos.
What are other circumstances where you might be a non-resident of Laos for tax purposes?
You will need to assess whether you have a personal tax liability in your country of tax residency. This is based on your earnings declarations and employment status. Some countries, like the USA, will tax US citizens on their worldwide income – even if they aren’t living and working in the USA. So even if you can receive gross salary payments to your offshore account from your assignment in Laos, you might have to make earnings declarations which incur a personal tax liability. It is essential to get expert advice about this because your situation will be affected by the tax laws of the country where you are working as well as the country where you are tax resident. An expert will help you understand the requirements such as:
Become an Oil and Gas Contractor in Laos Without the Hassle
Before you start to work as an oil and gas contractor in Laos, you should be aware you'll likely need a sponsor first. Though the culture on an oil rig may seem quite different to the rest of the country, the complex taxation and work permit system still applies. If you don't comply with all regulations, you might find yourself heading home before you've even gotten through your first day.
With the oil and gas industry booming right now, you shouldn't have any reason to miss out on a lucrative position. Contractors are not on their own when trying to decode Laos's payroll, taxes and work permit rules. Before you take on a contract, find a partner that has your back. You need a third party that is well versed in all the fine details of contracting in Laos.
You may be tempted to travel under a tourist or business visa if you are on a regular Fly-In Fly-Out (FIFO) rotation but this is not recommended in Laos. The penalties for working illegally (i.e. without the correct work visa) can be harsh and may also have implications for the end client. Most contracts issued by oil and gas companies demand a full indemnity from the contractor should they be fined or penalized as a result of you being onsite. It is much wiser to use an umbrella solution that fully complies with the employment, immigration and tax laws in Laos.
You'll need someone to help you find the required support before you can sign a contract. Add in gaining a work permit, managing payroll and handling insurance and you've definitely got your hands full if you don't work hand in hand with a professional. Working with the right people will also ensure you earn the highest percentage possible after taxes. While you'll pay a small fee, you'll still end up earning more and you won't have the senseless hassle.
This guide is specific to a UK contractor who is running their own personal UK Limited Company, of which they are the sole director, working in Laos and wanting to use their Ltd company for invoicing and payment. The general concepts apply to citizens of other countries who are also trying to use their own company (for example a US Citizen trying to use their LLC on an assignment in Laos).
Generally foreign contractors working in Laos gain the greatest benefits by utilising Double Taxation Treaties to minimise their exposure to Laotian taxes. Using your personal services company will most likely negate this benefit and increase the administration by potentially forcing you to calculate and file taxes in two jurisdictions.
You can net more by going through an umbrella structure who maximise your dual taxation benefits and handle all the administration of your payroll in Laos. This ensures that the requirements of both the Laotian and UK tax authorities are met.
Contracting in Laos isn’t as simple as jetting over on a plane and finding some jobs. There are myriad laws governing taxes in the country and the immigration process, and if you don’t comply with them you could land yourself in some serious legal trouble. If the mountainous paperwork and the hours of compliance procedures seem like an over-complicated hassle, you should consider finding an umbrella company in Laos. Whether you’re an oil and gas worker, an IT project manager, a business analyst or a telecommunications contractor, learning the basics about umbrella companies can make getting your Laos work permit much simpler.
If you don’t have a fixed employer, it’s much more difficult to get hold of an Laos work permit. Like in most countries, in order to work in Laos you must have a “sponsor,” which is ordinarily a company who will be employing you for the duration of your stay in the country. This placates the country’s immigration authorities by showing them that you’ll be earning money throughout your stay. The problem is, as a contractor you can’t be sponsored by the end client or the agency while you’re in Laos, so you need a third party to sponsor you. This makes getting an Laos work visa to cover your entire period of stay possible.
The basic purpose of Laos umbrella companies is to give you a long-term employer without compromising your autonomy as a contractor. You technically become an employee of the umbrella company, and your payments are filtered through them. The company acts as an intermediary between you and your clients; collecting payments from them and processing them onwards to you.
From a legal standpoint, the umbrella company has the direct relationship with the client or the recruitment agency, and you are simply one of their employees. In actuality, you work as you ordinarily would and just submit your timesheets to your umbrella company, who then bill your clients accordingly and send the payment to you.
This means that to get your work permit, the umbrella company will sponsor you and act as your employer throughout your stay. The additional bonus is that Laotian umbrella companies are experts in local tax law, so they ensure that you keep as much of your money as possible. The largest umbrella companies are also skilled in international expat taxation to assist with dual taxation issues and whether you are able to receive funds offshore. They’ll process your tax payments for you as you earn, just like a regular employer would. You’ll receive paperwork for your personal records, of course.
Our service is designed to help you get set up with the right umbrella company for your requirements. Whilst they all provide the same basic services, there are several nuances which differentiate each one. We work with a multitude of umbrella companies, and we have a detailed knowledge of the services they offer. If you’re looking for an umbrella company in Laos, we’ll find you the best one for your needs. The best part about it is that our service is completely free; we’re just here to help make contracting in Laos easier for you!
Recruiters seeking to place candidates in Laos face a mountain of paperwork. We seek to reduce this burden. It can be immensely difficult to balance a client's needs and wants when doing business in Laos. Without expert advice and management, a candidate could lose more of their income than is necessary to taxes, social security and immigration. With time consuming administration, complex local laws and little pay out, recruitment in Laos seems too stressful to even consider. With our help, we can help you place candidates faster in positions such as business analyst, IT project manager, telecommunications contractor, software developer and oil and gas worker. Our guidance makes candidates see contracting in Laos as worthwhile.
Contractor management companies, also known as umbrella companies, help contractors comply with all local tax laws and saves time on complex administration. All of the contractor's invoicing and payroll, taxes, fees and social security are handled by the contractor management company. Recruiters save valuable time by outsourcing the administration and payroll duties related to contract management. At the same time, tax laws are complied with. For recruitment businesses in Laos, using an umbrella company is the best way to reduce the amount of work associated with managing contractors.
Umbrella companies are experts concerning local tax laws. This means your contractors receive highest final pay allowed while still complying with all rules and regulations. Recruiters are better able to find willing contractors thanks to increased pay and same day payout once the company receives payment from the client. You also receive tax receipts and payslips as records. Contractor management companies in Laos also eliminate the complex, time consuming administrative tasks recruiters face. Recruitment agencies in Laos can focus their time on gaining new contracts and contractors for their clients when an umbrella company takes over tax and payment calculations.
Some contractors require a company to sponsor their work permit when contracting in Laos. An umbrella company may be able to serve as a sponsor for the contractor, making placements in Laos easier to secure. Trying to find a native employer to sponsor a contractor equals extra admin and stress. Since the umbrella company is considered the employer of the contractor, they are legally able to serve as the native company sponsor. You are able to save time and the contractor doesn't have to continue seeking a sponsor for each new contract.
Our extensive contractor management company database contains all details recruiters and contractors need to make wise decisions. With in-depth knowledge of each company's services and offerings allows us to find the perfect company for every need. Since each umbrella company in Laos caters to different types of clients along with providing varying services and payment structures, it is vital to have expert guidance as you sort through the myriad choices available for your contractors.
For contracting in Laos, you need professionals with expert knowledge who truly care about their customers. We are proud to offer the highest quality service possible. You can contact us at any time with questions concerning the services we offer to recruiters or for more information about umbrella companies. Our prompt responses ensure you receive reliable, well researched advice that is free of technical jargon. As a bonus, we provide our services for free. This means contacting us is absolutely risk free. Seeing what we have to offer you, your contractors and your clients is a worthwhile investment.
When recruiters payroll contractors in Laos themselves, they just add stress to their workload with increased administration. Using a contractor management company in Laos helps to reduce stress by assisting with payroll and administrative tasks. These companies also pay the contractor directly and invoice the cost to you. Recruiters then have more time to spend matching contracts and contractors instead of spending valuable time with administrative details. You always receive payment records including tax receipts and payslips.
To help the recruiter and contractor save time with tax payment process, calculating other fees and local law compliance, contractor management companies serve as the middleman between taxes and the contractor. These companies, also known as umbrella companies, ensure all taxes are paid correctly while offering contractors the maximum portion of their gross pay. Umbrella companies are available to help a variety of independent contractors including business analysts, telecommunications contractors, software developers and oil and gas workers.
A contractor management company manages all tax related administrative work concerning contractors in Laos. Their in-depth knowledge of local tax law helps your contractors retain as much of their earnings as possible in the Laotian tax system. The contractor never has to worry about overpaying taxes when trying to comply with local tax laws. The company also takes care of deducting all required fees and social security payments before the contractor is paid. As soon as the company receives payment, they send payments directly to the contractor.
Recruiters are able to save time and focus their staff on gaining new clients and matching contracts to the appropriate contractors. Your contractors are always paid correctly and quickly without any extra work from you. The only obligations you have when using a contractor management company in Laos is to pay the invoice for the contractor's completed work. This is especially helpful and time saving if your contractors only work with you for short periods of time. These companies reduce excess work and paperwork.
For contractors who need a sponsor for their work permit, contractor management companies offer another benefit. They can legally serve as the contractor's sponsor, making it less stressful on the recruiter and contractor when trying to obtain a work permit. Any employees from overseas are required by law to have a local employer sponsor in Laos. Basically, the employer takes responsibility for the contractor. This process leads to additional paperwork and may even turn a contractor off when considering a new contract in Laos. With a contractor management company offers as part of a recruiter's service, all this hassle is eliminated.
We are here to help with your contractor payroll needs. Our extensive contractor management company database contains every umbrella company in Laos. We use our knowledge and experience to match you with the best possible match for your needs. Every company offers their own benefits and services to recruiters. Based upon the criteria you give us and your situation, we find the companies that offer the most benefit to both you and your contractors. We know every possible option and find the ones offering the best Laos payroll services.
We provide our contractor management company matching service for free. Our dedication to the recruiter and their contractors ensures you always receive well-informed, reliable advice about contractor management companies in Laos. We will answer all enquiries quickly so you have the information necessary to make the right decision. Contact us immediately if you have any concerns about immigration or taxes for contractors in Laos. We'll help you with your contractor admin concerns to ensure you are free to find new clients for your contractors.
Recruiting IT contractors in Laos places a lot of administrative work on the shoulders of your payroll department. Matching one of your contractors to your client’s role means more calculations, more paperwork and more processing payments, which can eat up a big chunk of your employees’ time. And that is assuming you are registered to run payroll in Laos. You do have other options, though. One of the easiest methods is using a contractor management company (or “umbrella” company) to take care of your payroll duties. Finding out about benefits of this approach helps you determine the best course of action for payrolling IT contractors in Laos.
Several companies can save you work when you’re placing candidates in Laos. Contractor management companies take care of the contractor for you by serving as their employer. The process of placing candidates through a contractor management company is simple:
The biggest benefit of using an Laotian contractor management company as an IT recruiter is that it drastically reduces the time you spend on making payments and calculating taxes. Here are the main ways you can save time when you’re placing candidates in Laos:
We are partners with many contractor management companies in Laos, and we have a detailed knowledge of the services they provide. If you’re considering outsourcing your tedious admin work and payroll duties, we can suggest the companies most suited to your requirements. The higher proportion of earnings keeps your contractors happy, and the amount of time you save removes the burden on your staff. It lets you focus on the next deal instead of fretting over details. We offer great advice, and if you have any questions we’ll run them by our partners so you get up-to-date, reliable information. Our service comes with no charge and no obligation.
Despite the financial crunch, the IT recruitment market in Laos has remained resilient. In order to attract expert contractors, recruitment companies are offering slightly higher rates. Recruitment companies are constantly seeking ways to offer higher value contracts without any additional cost to them. With the considerable contractor management complications in Laos, many contractors are reluctant to take a contract in the country. Add complex international tax rules to the stress of a new contract and contractors need some incentive in order to take a contract.
We provide contractors and agencies a solution to complicated contract management. One of our specialities is contractor management services in Laos. We start by consulting with a contractor about their situation and needs. We then match them with the right Laotian contractor management companies. We find umbrella companies that take the burden of fiscal and regulatory compliance issues off the contractor. The end result is the contractor being able to focus on the client, which also benefits the recruitment company. A happy client is always the ultimate goal. We are not affiliated with any recruitment companies, umbrella companies or clients, allowing us to provide unbiased, expert advice on the best umbrella companies in Laos.
In addition to typical administration tasks, Laos contractor management companies even sponsor work permits. Without an umbrella company, the contractor would be responsible for handling recruitment agency invoicing, social security levies, tax deductions and other fees. The company even provides documentation such as tax certificates and payslips for record keeping. Ultimately, taxes are minimised due to the company's tax experts. Should tax withholding become a problem, the contractor management company will invoice the client directly and pay a commission to the recruiter. As a contractor, the only thing you are responsible for is sending in a timesheet and an expense report. As soon as the agency releases funds to the contractor management company, the contractor receives their portion. Fast turn around of cash keeps both recruiters and contractors happy.
We have in-depth knowledge of the best umbrella companies and contractor management in Laos. We focus on the needs of the contractor, learning about their personal goals and circumstances. The better we understand the contractor, the better matches we can find for them. Our experts save contractors valuable research time so they can focus on other preparations. We provide our service completely free to the contractor. Our pay comes from a commission from the contractor's umbrella company in Laos of choice; however, the contractor always makes the final choice. Our goal is to make the contractor comfortable and reduce overall contract stress.
Recruitment agencies exist to recruit the right contractors for available contracts, while providing clients with multiple options for their contracts. Once a client has made a decision, we work with the contractor to provide advice. In some circumstances should an agency request it, we will help immediately before a decision is made should a leading candidate have reservations due to the complex administration when contracting in Laos.
The recruitment company pays nothing when we work with their contractors. Our advice is extremely valuable to contractors, especially the time saving aspect. It also adds value to the services recruitment companies offer. Both parties benefit and neither pay anything.
While the IT sector is booming, we offer advice on umbrella companies in many high demand industries such as telecommunications, engineering, oil and gas and finance. Contractors and recruiters can rely on our second to none expert knowledge of contractor management companies in Laos.
Costs vary according to the nationality of applicant and factors such as whether they have any dependents. They are largely comprised of government fees which are also liable to change. If you contact us we can give you an up to date and accurate cost on Laos work permits.
The short answer is yes! The long answer is that it depends on the nationality of the contractor, what they will be doing and what happens after the business visa runs out. e.g. will you be planning to finish the assignment, extend the business visa or transfer to a work permit?
It is possible in certain scenarios but we’ll need to check your case with our local partner to be sure. It can be influenced by the individuals country of origin and the nature of work they will perform. Generally if you aren’t able to transfer in country you need to return to your country of origin.
Yes our local partner can run a full local payroll. This includes receiving funds from another local company or a foreign entity, deducting local taxes & social costs, reporting same to the relevant government department and supplying payslips. They can make payment within 24 hours of receiving cleared funds.
This depends on what job title and visa status the contractor holds. We ensure that the level of salary is sufficient to meet all regulatory requirements.
You can have a look at this page http://ContractorTaxation.com/Laos/Tax-Rate-In-Laos
Unfortunately we aren’t able to publish figures online because the costs vary according to the circumstances. We have a number of local partners who can provide employment outsourcing in Laos so you are assured to get the most competitive price. If you’d like a quote please contact us.
This can be influenced by which country your company is incorporated in as well as the tax laws of Laos. Sometimes the nature of the work or services provided can also influence whether with-holding tax applies. If you can share some details with us we can confirm with our local experts.
There are some nationalities who receive extra scrutiny in Laos, meaning their applications will take longer and require additional documentation or checks. This is often due to political reasons and can change acccordingly. It isn’t prudent to state that any nationalities are out of favour. Our partners in Laos haven’t recently experienced problems with citizens of the EU, USA, Canada or Australia. For all other nationalities its best to check the current climate.
This explains the implications for your agency and company if your contractors in Laos are using their personal Ltd Company. It assumes that you are dealing with a UK Contractor who has a personal UK Ltd Company which they want to use. Many of the issues are the same for personal service companies registered in other countries (except Laos).
Your contract with your client will almost certainly mean your agency bears responsibility to ensure that the contractor is legally working in Laos i.e. that they are compliant with all relevant Laotian employment, taxation and immigration requirements. The client will hold your agency accountable if this isn’t the case. This could mean you just lose their business or in the worst case they may commence action to recover fines or penalties which they incur if the contractor isn’t compliant.
If you are a UK recruitment agency you will already be familiar with the basic steps you take when placing a new contractor. You need to get copies of their company incorporation certificate and VAT registration certificate. You should also get proof of individual’s identity (such as scanned passport or driver’s license) and potentially their National Insurance number. This ensures you have verified their identity and company registration. Not only is this common sense it is also one of the requirements of money laundering legislation.
For foreign assignments it is recommended to take a couple of further steps by checking that the Ltd company has been registered for tax and VAT / sales tax in Laos and also that the contractor has registered with the Laotian taxation system for tax and social security. In some circumstances the contractor may be able to continue paying social contributions in the UK by supplying a form to the Laotian tax authorities.
Obviously it may take time for the contractor to complete these registrations but if you pay their UK Ltd company without confirming they are registered for Laotian tax it exposes your agency and client.
It is unlikely that the Laotian tax or employment authorities will investigate your agency directly but your client is open to inspection by their internal compliance officers, external audits which they may undertake, as well as those direct with the Laotian authorities. Unfortunately UK Ltd companies get a bit of extra scrutiny at home and with many foreign jurisdictions because of some well publicised cases of abuse. Don’t forget your contractor will be subject to immigration scrutiny each time they cross the border. Lastly the UK HMRC may rule the contractor is still liable to UK tax and national insurance. This raises the possibility of IR35 and its Laotian counterpart.
The most common danger is damaging the relationship with your client and contractor, although the risk to your agencies reputation should not be understated. If the client is investigated or fined because the contractor was on site illegally or wasn’t tax registered then there may also be significant financial penalties for the client which are passed onto the agency through the indemnity clauses in your contract. You should pass these same indemnity clauses on to your contractor’s limited company – but their personal liability is somewhat shielded by the limited company setup.
The client, as a Laotian company, has to ensure that any workers on its premises have the legal right to work in Laos and that any employees or contractors that it uses comply with Laotian tax regulations. If your contractor is found to be liable for Laotian tax but hasn’t registered or paid it then the authorities may seek to recover funds through the client. In the worst case the authorities may rule that your contractor was effectively an employee of the client and the client will be liable for income tax deductions and employers social contributions. If the contractor is stopped at the border and doesn’t have the right work permission they will be deported or refused entry. This poses an immediate problem to the client if their work contribution cannot be easily replaced. However if they are caught on site without a work permit the employer can be hit with a range of penalties including substantial fines. It may also limit their ability to employ foreign nationals in the future.
If your contractor doesn’t have the right immigration permission they may be refused entry or deported. If they aren’t paying tax or contributing to national insurance or Laotian social security there is potential for fines and worse if the avoidance is ruled deliberate. VAT or sales tax is another liability which they may neglect. If they are collecting tax but not paying it to the authorities the penalties are very serious indeed.
If the contractor can show full compliance with their UK Ltd company – i.e. they are registered with all the relevant Laotian authorities before the contract is signed then you may feel comfortable enough to proceed. If you want to be fully assured that everything is above board then utilise a specialist contractor management company who run a local payroll in Laos. This doesn’t stop your contractor from maximising their net income, but it does ensure that they are registered for, and paying, all local taxes and social contributions. The best umbrella companies can also arrange sponsorship for contractors, if necessary, so they are legally entitled to work in Laos.
If you would like more advice on placing your contractor into Laos please talk to us. We can get you the information you need and help you find the most appropriate solution. We’re partners with a multitude of Laotian contractor management companies, and we’ll check with them to ensure you receive accurate information. We also have a detailed knowledge of their offerings, and we can find you a company which will payroll your contractor legally. They will also supply the supporting documentation to reassure your client that the contractor is properly registered and compliant. Our advice is completely free, and there is no obligation. Get in touch with us today and see what we can do for you!
Working in Laos is rarely as simple as it seems. Whether you’re a software developer, oil and gas worker, business analyst, telecommunications contractor or an IT project manager, you have a lot to consider before you move. How does the tax system work? Will you still be eligible for tax in your home country during your Laotian job? Is moving to a new contract allowed on your work permit? We know these questions are hard to answer, and finding the truth with ever-changing regulations isn’t easy.
The work permit system is the first hurdle you’ll encounter on the way to working in Laos. For full-time employees, work permits are simple. Employers “sponsor” you for your work permit for the duration of your contract, and your family will be able to come over with you. Sponsorship reassures the immigration authorities that you’ll be able to support yourself during your stay. However, if you’re planning on contracting in Laos then you generally can’t be sponsored by the end client. Additionally if your client can sponsor you then each time you get a new contract, you’ll have to change your permit accordingly, creating more tedious paperwork.
The worst thing about tax systems is that the majority are extremely complex and they’re continuously updated. Without a full understanding of taxation in Laos, you could pay too much, and mistakenly think you don’t have to pay taxes in your home country too. For short term contracts you are often also eligible for some tax in your home country due to your tax residency, but there are usually agreements in place to ensure that you don’t pay income tax twice on the same money. Finding out about specific rates is difficult, and if you’re new to employment in Laos it’s easy to make mistakes.
A popular solution to the issues contractors face when taking a job in Laos is to use a contractor management company (or “umbrella” company). They essentially employ you – collecting and processing your wages, paying your taxes and sponsoring your work permit – but you still operate as a contractor. This way you can be sponsored under one permit for multiple contracts and minimise admin. They’re also experts in local tax law, so you’ll keep the biggest proportion of your earnings possible through the Laotian tax system. All you have to do is send in timesheets for your hours and they’ll do everything else for you. You’ll get documentation for your personal records, and you’ll comply with local law without wasting time.
We work closely with numerous contractor management companies in Laos. We have a detailed understanding of their offerings, and have specialists in both Laos taxation and work permits. Our partners can make your move simpler, ensuring that your family can join you and alleviating the stress of immigration. We also give professional, impartial advice to help you enjoy life in Laos without getting caught up too much in the complications of doing business. The laws governing Laotian employment change so regularly it’s very hard to keep up. We’ll ask the experts directly, and ensure you get up-to-date, accurate information. There is no charge whatsoever for our service and you are under no obligations. Get on the phone now for some free advice!
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