Mrs Sounthone Xayachak chairs a meeting of the National Assembly Standing Committee in Vientiane. --Photo Phouthen Pasaxon News

Laos, Hong Kong advance double-tax agreement

Laos and Hong Kong are edging closer to finalising a double taxation agreement (DTA) designed to avoid duplicate tax payments, clarify regulations regarding cross-border income, and bolster their growing economic ties.
The National Assembly Standing Committee reviewed the outcome of negotiations on the agreement during a meeting held on September 21-22, chaired by the committee’s Acting Chairwoman, Mrs Sounthone Xayachak.
The proposed agreement would cover the avoidance of double taxation and tax evasion with respect to income tax.
For businesses and investors operating across borders, such agreements can provide greater certainty over which jurisdiction has the right to tax different types of income.
The proposed agreement comes as economic cooperation between Laos and Hong Kong gains momentum.
In September, Standing Deputy Prime Minister Mr Saleumxay Kommasith attended the 11th Hong Kong Belt and Road Summit to promote Laos’ investment opportunities and the country’s potential as a regional logistics hub.
In addition, the Laos-Hong Kong Business Forum 2026 took place in Hong Kong on September 11, when more than 120 business operators met to discuss ways to strengthen business links and identify opportunities for cooperation.
Three cooperation documents were signed at the forum. They concerned financial cooperation, investment promotion, and a feasibility study on battery energy storage involving Électricité du Laos and a Hong Kong-based partner.
The growing relationship also includes cooperation in the precious-metals sector, with a memorandum covering areas such as refining, processing, testing, certification, financial technology and regulatory cooperation.
These initiatives add a practical dimension to the proposed tax agreement, as companies and investors increasingly explore opportunities linking Laos with Hong Kong’s finance, trade and logistics networks.
The agreement could also support the wider effort to make cross-border business activity more predictable. Hong Kong says its double-tax agreements allocate taxing rights between jurisdictions and can reduce withholding tax on certain types of income.
The Hong Kong Special Administrative Region has signed comprehensive double-tax agreements with 60 jurisdictions as of September 2026, according to Hong Kong’s financial services and the treasury bureau.
The proposed Laos-Hong Kong agreement now forms part of the broader economic cooperation agenda between the two sides, alongside efforts to expand investment, financial services, trade, energy cooperation and other business links.
The move comes as Laos seeks to attract more investment and diversify its economy, while Hong Kong continues to strengthen its connections with Belt and Road economies.
The National Assembly Standing Committee considered the tax agreement together with several other proposals submitted by the government at its September meeting.
These included a proposal to source funds to support national development, as well as a request for the flexible application of certain provisions of the Law on Minerals for a coal exploration project in Phongsaly province.
The committee also considered the flexible application of certain provisions of the Law on Excise Tax relating to fuel.
The committee also reviewed reports on five amended draft laws to be submitted to the 2nd Ordinary Session of the 10th National Assembly for consideration and approval.
The draft laws relate to the People’s Security Forces, cybercrime prevention, alcoholic beverage control, the government, and civil aviation.
The Standing Committee further reviewed preparations for the upcoming parliamentary session and certain National Assembly personnel matters.

By Phonepaseuth Volakhoun
 (Latest Update September 29, 2026)