FY2021 Annual Submission and Dividend Income Tax

Following postponement by the Ministry of Finance of the date for submission of the FY2021 annual financial statements (the “FS”), the deadline of 31 May 2022 set by Notice No. 933/MOF dated 31 March 2022 is fast approaching. Are you ready? Is your document checklist completed? Are you aware of the income tax rules on dividend distributions?

Below, we provide a brief summary of the process, document checklist, and income tax applicable on dividends distributable per the FS for your reference.

Process

Depending on a company’s registration location, the FS will be submitted to the Accounting Authority or Department and the Tax Authority or Department simultaneously – there is no need to obtain a stamp from the Accounting Authority or Department before submitting it to the Tax Authority or Department.

Checklist for tax submission

Checklist for tax submission	Tax Department	Tax Authority of Vientiane Capital
FY2021 FS	√ 3 originals	√ 5 Originals
Taxation profit calculation	√
Fixed asset listing (annual update)	√
Inventory listing	√
Tax payment certificate (normally a copy, but sometimes an original is required)	√	√
Enterprise registration certificate (copy of the latest one)	√	√
Tax audit minutes and tax payment receipts (copies)	√	√
Summary of tax payments (including all taxes paid in the provinces, if any) (copy)	√	√
Minutes and resolution of the shareholders regarding the FS and dividend distribution (copy)		√
Office rental agreement and its income tax payment receipt (copy)	√	√
Office location certificate (if the office has moved to a new location) (original)		√
Passport/ID card of the managing director or general manager (whose name and photo are on the enterprise registration certificate) (copy)		√
Power of attorney to an agent to submit the FS and documentation
Photo of the managing director or general manager	√ Two copies
Articles of association with asset registration		√

There is slightly different and less documentation required for the accounting submission.

Dividend income tax

Income tax on any dividend distributions for the fiscal year must be paid within 15 working days from the date of the minutes and resolution of the shareholders’ meeting approving such distribution.

Notification of any retained earnings made per the minutes and resolution of the shareholders’ meeting must be given to the Tax Authority or Department within 15 working days from their date.

If there are no minutes or resolution of a shareholders’ meeting or no distribution of dividends for the fiscal year, the Tax Authority or Department must be notified by 30 June of the following year, or a deemed distribution will be assumed on which income tax will be computed and penalties possibly levied. 

If you have any questions about this alert or need further information regarding the above, please contact the undersigned or your usual VDB Loi adviser.