Do You Need to Pay Tax on Lottery Winnings in Laos? A Clear Guide to the Tax Rules of the Lottery Business

在老挝卖彩票，中奖的钱要交税吗？一文讲清彩票生意的税务门道

ຂາຍຫວຍຢູ່ລາວ, ເງິນທີ່ຖືກລາງວັນຕ້ອງເສຍພາສີບໍ່? ບົດຄວາມນີ້ອະທິບາຍເລື່ອງພາສີອາກອນຂອງທຸລະກິດຫວຍໃຫ້ເຂົ້າໃຈງ່າຍ

Published: 2026-09-04 · LaoPaniti legal guides

In Laos, if you run a lottery ticket sales outlet or act as a distribution agent for a lottery company, the most headache-inducing issue each month is probably not whether you can sell tickets, but how to report taxes.

For example: In January, you sold lottery tickets worth 100 million kip, but a customer won 120 million kip. Not only did you not make a profit, but you also lost 20 million kip. In this case, do you still need to pay Value Added Tax (VAT)? Don't worry—a special notice from the Ministry of Finance in 2013 clarifies this matter.

Value Added Tax (VAT): If Sales Are Low and Winnings Are High, the Difference Can Be Carried Forward to the Next Month

According to Article 1 of the *Notice on the Implementation of Tax Obligations and Profit Distribution for State-Owned Lottery Development Enterprises, Their Distribution Agents, Branch Offices, and Lottery Retailers Nationwide*, the VAT for the lottery business is not calculated based on the number of tickets sold, but on the difference between sales revenue and the amount of winnings paid out.

If the sales revenue for the month is less than the winnings paid out, the negative difference can be carried forward to the next month to offset sales revenue. For example, if in January you sold 100 million kip and paid out 120 million kip in winnings, you have a negative difference of 20 million kip. In February, if you sell 150 million kip and pay out 30 million kip in winnings, your tax base for February would be 150 million minus 30 million minus 20 million, which equals 100 million kip.

Also, remember the filing deadline: by the 15th of the following month. The head office reports to the Central Tax Department, while provincial agents and branches report to their local tax offices. If you are in Vientiane Province or Vientiane Capital, and you have already paid a 'withholding VAT' when receiving tickets from the head office, that amount can be used to offset the tax you owe for that month. If the credit is not fully used, it can be carried forward.

Excise Tax and Profit Tax: Not All Lottery Sellers Need to Pay Excise Tax

Excise Tax applies only to state-owned lottery development enterprises themselves. According to Article 2, the tax base is the cost of printing lottery tickets for the month, including printing costs, labor costs, and equipment costs, with a tax rate of 25%. For example, if these costs total 458 million kip in a month, the Excise Tax would be 114.5 million kip. However, note that distribution agents and branch offices do not need to pay Excise Tax again.

Profit Tax depends on your accounting records. Article 3 states that Profit Tax is calculated at the ordinary tax rate and the progressive discount rate, based on Article 29 of the Tax Law. Declarations are made in four installments: April 10, July 10, October 10, and March 10 of the following year. If you incur a loss this year, after confirmation by the tax authorities, the loss can be carried forward for 3 years, but not beyond that.

Income Tax: Commissions from Selling Lottery Tickets and Winnings Are Both Subject to Tax

Don't think only salaries are taxed. Article 4 explains in detail:

Employee salaries: Monthly income minus a basic deduction of 1 million kip, with the remainder taxed at progressive rates. Declarations are due by the 15th of the following month.
Sales commissions: Commissions you earn from selling tickets are also considered income. After deducting 1 million kip, the remainder is taxed at progressive rates. Your superior agent or branch office must withhold and remit this tax.
Winnings for prize winners: If a single prize exceeds 1 million kip, whether in cash or in kind, the enterprise or agent awarding the prize must withhold 10% income tax and declare it within 10 days after payment.

So, if you operate a lottery shop, remember to withhold this tax for winning customers; otherwise, you may face trouble.

Don't Forget Bookkeeping and Filing Deadlines

Article 6 of the Notice also emphasizes that all lottery-related enterprises must strictly keep books in accordance with the Accounting Law, and submit asset inventory lists and other documents by March 1 each year.

If you are still unsure about the specific calculations, don't struggle alone. Laos's tax rules have many details, and a single miscalculation could result in overpaying taxes. As we discussed in our previous article, *In Laos, If You Make a Mistake on an Invoice, You Might Pay Taxes Unnecessarily?*, professional matters are best handled with professional tools.

Want to figure out exactly how much tax you owe? Feel free to visit 老法智 LaoPaniti and ask the AI for free. Input your sales amount and winnings, and let the AI help you sort it out.

This article is compiled by 老法智 LaoPaniti for reference only and does not constitute legal advice.

FAQ

I sell lottery tickets. If my sales for the month are less than the winnings paid out, how is VAT calculated?

According to Article 1 of the Notice, the tax base for VAT is the difference between sales revenue and winnings paid out. If the result is negative, this negative difference can be carried forward to the next month to offset sales revenue. For example, if in January you sold 100 million kip and paid out 120 million kip in winnings, you have a negative difference of 20 million kip. In February, if you sell 150 million kip and pay out 30 million kip, your tax base for February would be 100 million kip (150 million - 30 million - 20 million).

Do lottery ticket sellers need to pay tax on their commissions?

Yes. According to Article 4.2 of the Notice, commissions earned from each ticket sale are taxable income. The distribution agent or branch office, as the withholding agent, must declare and remit the tax to the local tax office by the 15th of the following month. The calculation is: total monthly income minus the basic monthly deduction of 1 million kip, with the remainder taxed at the progressive tax rates.

If a customer wins a prize, do I need to pay tax on their behalf?

If the prize amount (in cash or the value of goods) exceeds 1 million kip, you, as the prize-awarding entity (state-owned lottery development enterprise, distribution agent, or branch office), are required to withhold 10% income tax and remit it to the tax authorities within 10 days after paying the prize.

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