Banking, money and taxes in Laos

The economy in Laos is largely cash based, and dealing with banking, money, and taxes can be challenging. Some higher-end businesses and hotels accept card payments, but this is the exception rather than the norm – those planning on travelling to rural areas should be sure to bring enough cash. ATMs are widely available in larger cities, though some expats report withdrawal limits.

Though Lao law dictates that payments in the country should be conducted in the local currency, transactions in US dollars and Thai baht are commonplace. It is much easier to change dollars or baht to Laotian kip than vice versa, as the kip cannot be exchanged outside of Laos.

Money in Laos

The currency in Laos is the Laotian kip (LAK). It is available in the following denominations:

• Banknotes: LAK 1,000 , LAK 2,000, LAK 5,000, LAK 10,000, LAK 20,000, LAK 50,000, and LAK 100,000.

Banking in Laos

Banking in Laos is fairly accessible, especially in larger cities. Both local and international banks usually have at least one English-speaking representative.

Opening a bank account

Opening a bank account in Laos is only allowed for expats in the country on a business visa or work permit. Those staying for a shorter term may have to draw money from international ATMs – a simple but costly endeavour.

Credit cards and ATMs

Though ATMs are widespread in cities and larger towns, they are scarce in rural areas of the country. Card transactions are rare outside of tourist areas and high-end establishments.

Taxes in Laos

Local tax law dictates that income tax is payable by all foreigners working in Laos, regardless of their stay duration, unless their home country has a double taxation treaty with Laos. Expats from other countries will be expected to file tax returns and pay taxes in both Laos and their home country. As this can be a complex task, hiring a specialised expat tax practitioner is strongly recommended.