LEGAL PROBLEMS CONCERNING INVESTMENT PROMOTION OF LAO PDR INRESPECT OF TAX MEASURES

บทคัดย่อ

This research is intended to explore tax measures for promoting or attracting investment from foreign investors under the investment promotion law of Lao PDR and, for this purpose, compare the Laotian law with the investment promotion law of Thailand and Vietnam. In effect, the research points out that tax measures for promoting or attracting foreign investment under the investment promotion law of Lao PDR contain restrictions constituting impediment to foreign investors and indeed run counter to the competition environment in multinational trade and investment, new innovation development in the production process and international exchange of labour and skills, in the present era. In particular, the investment promotion law of Lao PDR currently requires that foreign investors seeking entitlement to corporate tax deduction in businesses in the prescribed branches must employ at least 30 Lao technicians in their investment projects. Such requirement finds no presence in the investment promotion law of Thailand and Vietnam.

This research, therefore, recommends that the requirements impeding foreign investment opportunities under the investment promotion law of Lao PDR should be amended in the interest of fairness to foreign investors. In this connection, the investment promotion law of Thailand and Vietnam can be relied on as practical models for legislative amendment. However, to ensure that the revision will yield optimum benefit, all persons concerned should also take into account possible consequences in other dimensions, including the considerations of revenue collection, national finance standing and overall social effects as well.