Treating Clients to Meals, Giving Small Gifts, Making a Signboard—Do These Count as "Advertising Expenses" in Laos?

请客户吃饭、送小礼品、做块招牌——这些在老挝算不算“广告费”？

ການລ້ຽງອາຫານລູກຄ້າ, ການໃຫ້ຂອງຂວັນນ້ອຍໆ, ການເຮັດປ້າຍໂຄສະນາ — ສິ່ງເຫຼົ່ານີ້ນັບເປັນ 'ຄ່າໂຄສະນາ' ໃນລາວຫຼືບໍ່?

Published: 2026-09-11 · LaoPaniti legal guides

Friends running companies and doing business in Laos have almost all encountered scenarios like this: at year-end, treating old clients to a meal, giving distributors a batch of insulated cups printed with a logo, putting up a lightbox signboard at the store entrance, holding a promotional raffle... When the finance team does the bookkeeping, they lump all of these under "advertising expenses," but which ones actually count and which ones don't—they're really not sure.

For this gray area, the Standing Committee of the Lao National Assembly specifically issued a document to "draw the boundaries." It is an interpretive resolution on the term "advertising expenses" in Article 35, Clause 2, Item 4 of the Tax Law No. 70/ສພຊ (December 15, 2015).

I. What Exactly Does This Resolution Govern?

Simply put, it does only one thing: it breaks down the general term "advertising expenses" in the Tax Law and tells everyone specifically what costs are included. According to Article 1 of the resolution, a total of 16 categories are explicitly included in the meaning of "advertising expenses."

In other words, as long as your expenditure falls within these 16 categories, it will be treated as "advertising expenses" for tax purposes; if it is not within these 16 categories, you cannot force it into this basket.

II. Among the 16 Categories, Which Ones Are Business Owners Spending On Every Day?

Translated into plain language, the content of Article 1 includes these most commonly encountered in daily life:

Market support fees for customers—for example, helping distributors share part of their market promotion costs;
Advertising item fees for specific activities, advertising item design fees, and general standard advertising item fees—logo-printed T-shirts, umbrellas, packaging bags, and the money spent designing these materials;
Advertising expenses through media such as television, telephone, radio, the Internet, printed materials, and signage—placing ads, distributing flyers, and making signboards all count;
Film and television advertising expenses, advertising song fees, and outdoor advertising expenses;
Product display and exhibition fees, event setup item fees—exhibition booths, in-store displays, and setup materials for event sites;
Scratch card fees—scratch cards used for promotional raffles;
Expenses for promoting product sales through giveaways—promotional costs such as buy-one-get-one and gift-with-purchase;
Public-oriented advertising publication fees and advertising culture support fees;
Advertising expenses carried out in the form of holding activities on occasions such as events and festivals—sponsoring festivals and holding roadshows.

As can be seen, this list basically covers both "online + offline" and "materials + activities." When doing bookkeeping, business owners may want to classify items one by one against these 16 categories, rather than labeling them by feel.

III. Why Is It Important to Understand This Clearly?

Because "advertising expenses" is a tax item with clear boundaries. Only when the boundaries are clear can enterprises have a basis for bookkeeping, keeping supporting vouchers, and responding to tax audits. Article 2 of this resolution also specifically states: this resolution has the same effect as the Law. In other words, it is not an ordinary explanatory note, but an interpretive document with the same legal effect as the Law. Article 3 provides that this resolution is Effective from the date of Signature.

If you are also handling other tax matters in Laos such as Customs Declaration and Excise Tax, these articles on the site can be read together: "Laos Customs Declaration Says Goodbye to the Paper Era: How Much Do You Know About NSWA + Electronic System?" (https://www.123laoai.com/guide/204), "Buying Alcohol and Cars in Laos Requires Excise Tax? One Article to Understand Who Should Pay and How" (https://www.123laoai.com/guide/202).

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

Does this expenditure of yours actually count as advertising expenses? Tell the AI your specific situation, and you can get a comparative analysis in just a few seconds. Go to https://www.123laoai.com now to ask the AI for free, and don't let a muddled account drag on until audit day.

FAQ

Does treating clients to meals and giving holiday gifts count as "advertising expenses" under this resolution?

It depends on the specific nature. According to Article 1 of the resolution, "expenses for promoting product sales through giveaways" belong to advertising expenses; however, purely personal social exchanges and banquets unrelated to promotion are not among the 16 categories listed in Article 1 and cannot be directly classified as "advertising expenses."

Does making a lightbox signboard at the store entrance count as advertising expenses?

Yes. Article 1 of the resolution explicitly includes "advertising expenses through media such as television, telephone, radio, the Internet, printed materials, and signage" and "outdoor advertising expenses" within the meaning of advertising expenses. Signboards and lightboxes, as outdoor signage advertising, are included.

What is the relationship between this resolution and the Tax Law? Do they have the same effect?

Article 2 of the resolution clearly provides that this resolution has the same effect as the Law; Article 3 provides that this resolution is Effective from the date of Signature. It is an interpretation by the Standing Committee of the National Assembly of the term "advertising expenses" in Article 35, Clause 2, Item 4 of the Tax Law No. 70/ສພຊ (December 15, 2015).

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