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Laos vs Italy
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇱🇦 Laos
vs
🇮🇹 Italy
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–24%
24% top; debt restructuring affecting fiscal space
No change
23–43%
3-bracket IRPEF reform targeting completion
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
10% stable
No change
4–22%
Digital economy VAT rules tightening
No change

Corporate Tax Rate

Corporate Tax Rate
20%
20%; SEZ incentives maintained
No change
24%
Investment incentive rate (20%) extended
No change

Capital Gains Tax

Capital Gains Tax
10%
10% maintained
No change
26%
Flat 26% maintained
No change

Social Security & Payroll

Social Security / Payroll
~11.5%
NSSF expansion limited by fiscal constraints
No change
~40%
Pension reform adjustments continuing
No change
State, Regional & Local Taxes

🇱🇦 LaosProvincial & District Taxes

Laos's 18 provinces and Vientiane Capital have provincial tax departments that administer national taxes locally, with some authority over land and building taxes. The Tax Department under the Ministry of Finance sets all national rates. Provincial governments retain a share of collected taxes for local expenditure. Laos has significant hydropower, mining (potash, gold), and tourism revenues. The country has faced severe debt difficulties since 2022 and is in debt restructuring with Chinese creditors. A VAT was introduced in 2010.

🇮🇹 ItalyRegional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%–3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Laos vs Italy: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (0–24% vs 23–43%). 🇱🇦 Laos is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (10% vs 4–22%).

🏢 Corporate Tax: 🇱🇦 Laos offers a lower corporate rate (20% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇱🇦 Laos taxes investment gains at a lower rate (10% vs 26%), benefiting investors.

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All 🇱🇦 Laos comparisons →All 🇮🇹 Italy comparisons →