Hong Kong and Laos have signed an income tax treaty, reducing withholding tax rates on dividends paid to Hong Kong residents from 10% to a minimum of 5% and on interest from 10% to 5%. The agreement also provides relief from double taxation through foreign tax credits.
The Hong Kong government announced on 29 October 2026 that it had signed an income tax treaty with Laos.
This follows Hong Kong’s Financial Services Secretary Christopher Hui meeting with Laos Finance Minister Santiphab Phomvihane on 11 March 2026 to discuss the finalisation of a double taxation agreement between the two jurisdictions.
The treaty covers Hong Kong profits tax, salaries tax and property tax. In Laos, it applies to taxes on the profits or income of enterprises and organisations, as well as personal income tax.
The treaty sets withholding tax rates at 5% for interest and royalties. Dividends are subject to a 5% rate where the beneficial owner is a company holding at least 15% of the paying company’s capital for a continuous 365-day period. In other cases, the rate is 8%. Dividends and interest paid to the government, central bank or qualifying government-owned entities are exempt from withholding tax.
The treaty will take effect once the two jurisdictions exchange their instruments of ratification. It will apply in Cyprus from 1 January and in Hong Kong from 1 April of the year following its entry into force.
