IN BRIEF

The Personal Data Protection Act B.E. 2562 (2019) (“PDPA”) exempted small enterprises from the obligation to create, record, and retain a Record of Processing Activities (“RoPA”) under Sections 39 and 40. This exemption applied to both data controllers and data processors. However, while the main law has been enacted, the specific criteria for qualifying for this exemption have not yet been clearly defined in detailed regulations.

On January 8, 2025, the Personal Data Protection Committee (“PDPC”) issued guidelines clarifying the specific characteristics of the Small Enterprises eligible for the exemption. These guidelines are outlined in:

• 1) The Notification of the PDPC on the Exemption from the Creation and Retention of a RoPA for Small Enterprises Data Processors B.E. 2567 (2024); and
• 2) The Notification of the PDPC on the Exemption from Recording of a RoPA for the Small Enterprises Data Controllers B.E. 2567 (2024).

The notification for Small Enterprises Data Processors took effect on January 9, 2025, while the notification for Small Enterprises Data Controllers will take effect on April 8, 2025 (90 days after its publication in the Royal Thai Government Gazette), collectively referred to as the “RoPA Exemption for Small Enterprises”.

KEY PROVISIONS

Key Provisions under the RoPA Exemption for Small Enterprises:

A.Characteristics of Small Enterprises

• The RoPA Exemption for Small Enterprises defines eligible entities as:
  • 1) Small and Medium Enterprises (SMEs) under the law on SME Promotion.
  • 2) Community Enterprises or Community Enterprise Networks under the law on Community Enterprise Promotion.
  • 3) Social Enterprise or Group of Social Enterprise under the law on Social Enterprise Promotion.
  • 4) Cooperatives, Cooperative Unions, or Farmer Groups under the law on
  • 5) Foundations, Associations, Religious Organizations, or Non-profit Private Organizations.
  • 6) Juristic Condominium Entities or Housing Estate Juristic Entities under the laws governing condominiums and housing estates.
  • 7) Household Businesses.
  • 8) Sole businesses operated by individual data controllers.

For example, the definition of SMEs is as follows:

• • Manufacturing businesses with no more than 200 employees or annual revenue not exceeding THB 500 million.
• • Service, wholesale, or retail businesses with no more than 100 employees or annual revenue not exceeding THB 300 million.

If an enterprise’s employee count does not exceed the criteria but its revenue does, revenue will be the primary consideration.

However, small enterprises will not qualify for the exemption if they are required by law to appoint a Data Protection Officer (DPO) as per section 41 of PDPA. This requirement applies to:

• • 1) Government Agencies.
  • 2) Businesses Engaged in Core Activities of Personal Data Processing.
  • 3) Organizations Handling Sensitive Personal Data (SPI).

Examples include hospitals, banks, credit service providers, schools, law firms, and audit firms. (These examples of business types are for illustrative purposes only.)

B. Exemptions Not Applicable in Certain Cases

Even if an entity qualifies as a small enterprise, certain circumstances may still necessitate the creation, recording, and retention of a RoPA if collection, use, or disclosure of personal data involves:

• • Personal data with high risks to the rights and freedoms of data subjects; or
• • Personal data as a regular business activity; or
• • Processing sensitive personal data as defined by section 26 of PDPA (such as health data, religious beliefs, biometric data)

CONCLUSION

Understanding the exemptions from the Record of Processing Activities (RoPA) obligations is crucial for small enterprises to ensure compliance with Thailand’s Personal Data Protection Act (PDPA) while effectively managing their legal responsibilities. Although exemptions may apply in certain cases, businesses must carefully evaluate their data processing activities to avoid unintended non-compliance.

It is important to note that exemptions do not apply universally. Organizations processing high-risk personal data or engaging in regular personal data processing activities may still be required to comply with RoPA obligations. While these guidelines provide relief for many small enterprises, a thorough assessment is necessary to determine whether the exemption criteria are genuinely met.

At ILAWASIA, we offer expert legal counsel on PDPA compliance, helping businesses navigate their regulatory obligations with confidence. If you require guidance on RoPA exemptions or any other PDPA-related matters, please feel free to contact us for further consultation.

AUTHOR

• • Somphob Rodboon, Managing Partner;
• • Nannapas Phatcharakeatkanok, Senior Associate;
• • Wachinorot Siladet, Associate.
  • They can be reached at corporate@ilawasia.com

Remark: This newsletter is not intended to provide legal advice. It is for informational purposes only and should not be considered a substitute for professional legal consultation.

IN BRIEF

In mid-2024, the Lao National Assembly introduced the Law on Tourism (Amended) No. 63/NA, dated July 1, 2024. This law establishes principles, regulations, and oversight measures to ensure the quality and sustainability of tourism activities across the country. Its goal is to promote Laos as a modern and competitive travel destination while preserving its rich natural, cultural, and historical heritage. The law also aims to foster international tourism links, strengthen regional cooperation, and contribute to economic growth in a sustainable and environmentally friendly manner.¹

Under this law, tourism services are categorized into three distinct types²:

1. 1. Land-based tourism: Activities such as trekking, rock climbing, zip-lining, and cave exploration.
2. 2. Water-based tourism: Boating, kayaking, lifebuoy floating, diving, and rafting.
3. 3. Aerial tourism: Experiences like hot air balloon rides, paramotor flights, and skydiving.

KEY TAKEAWAYS

1. A. Business Requirements and Qualifications
   To legally operate a tourism business in Laos, individuals or companies must fulfill the following criteria³
   1. 1. 1. Be a registered business entity under Lao PDR laws.
      2. 2. Maintain an office with adequate facilities and equipment.
      3. 3. Employ full-time or part-time tourism staff licensed by the Department of Tourism Business Management (Ministry of Information, Culture, and Tourism).
      4. 4. Develop a detailed tourism program with transparent pricing.
      5. 5. Open a deposit account at a commercial bank.
      6. 6. Meet the minimum capital investment required for each type of tourism business⁴:
         1. • Outbound Tour Operator: 1,500,000,000 LAK
         2. • Travel Agency: 1,000,000,000 LAK
         3. • Inbound Tour Operator: 500,000,000 LAK
         4. • Specific Area Tour Operator: 100,000,000 LAK
   2. Foreign investors interested in the tourism sector must contribute at least 30% of the registered capital upfront. If this capital is not deposited following the issuance of the Enterprise Registration Certificate by the Ministry of Industry and Commerce, authorities may deny the license to operate the tourism business in Laos⁵.

¹Article 1 of Law on Tourism (Amended) No. 63/NA, dated July 1, 2024
²Article 61 (New) of Law on Tourism (Amended) No. 63/NA, dated July 1, 2024; Each type of tour guide service is defined in separate regulations
³Article 28 of Ministerial Decision on Tourism Business No. 607/MOICT, date 30/09/2022
⁴Article 36 of Ministerial Decision on Tourism Business No. 607/MOICT, date 30/09/2022
⁵Article 35 of Ministerial Decision on Tourism Business No. 607/MOICT, date 30/09/2022

1. B. Processing Time and Fees

• • Processing Time: 9 working days⁶
• • Service & Certificate Fees: 2,050,000 LAK⁷

1. C. Business License Validity & Renewal
   A tourism business license in Laos is a lifetime authorization. However, businesses must renew their certification every two years to continue operations. This ensures compliance with evolving regulations and quality standards in the tourism industry⁸.
   

FINAL THOUGHTS

With its breathtaking landscapes, rich cultural heritage, and growing tourism industry, Laos presents an exciting opportunity for investors and entrepreneurs. By adhering to the legal framework and meeting operational requirements, businesses can contribute to a thriving tourism sector while reaping significant financial rewards. Whether you’re looking to launch an adventure tour company, a luxury travel agency, or a niche cultural tourism business, Laos offers a promising and dynamic market to explore.

For businesses eager to dive into this thriving tourism business, ILAW LAOS offers expert legal counsel to navigate the complex regulatory landscape. ILAW LAOS is a one-stop service for legal consultation, providing a comprehensive range of services tailored for the tourism businesses. Our expertise includes:

• • Company Setup
• • Tourism License Application
• • Direct-Sale Business Licenses
• • Contract Negotiation e.g. insurance, service agreement, employment agreement

We ensure your business stays compliant and competitive, helping you seize opportunities without legal hurdles. Partner with us, and let’s grow your business in Laos’s evolving tourism businesses.

AUTHOR

• • Tanadee Pantumkomon, Partner; and
• • Viphavanh Syharath, Associate
  • They can be reach at ilawlaos@ilawasia.com

⁶Article 27 of Ministerial Decision on Tourism Business No. 607/MOICT, date 30/09/2022
⁷Official Website: Business Operating Licenses | License to operate Tour Operator
⁸Article 32 of Ministerial Decision on Tourism Business No. 607/MOICT, date 30/09/2022

According to Thailand’s National Statistical Office, the country officially entered the status of an “aged society” in 2024. This aligns with a global trend highlighted in a United Nations report, which underscores the increasing size and proportion of older individuals in populations worldwide.

As a prominent health and wellness hub, Thailand has experienced growing demand for health-focused services. To address this societal shift and tap into emerging opportunities, the government has introduced attractive incentives aimed at supporting the evolving needs of its aging population. These measures are designed to unlock potential in adapting to demographic changes while attracting investors to high-growth sectors such as senior and dependent care businesses.
The key details of these initiatives are outlined below:

1.Licenses

Senior and dependent care businesses, including day care centers, residential homes, and nursing homes, fall under the legal definition of the “Business of Caring for the Elderly or Dependent Persons” (collectively referred to as the “Business”). Operating such businesses requires a license, as stipulated by the Health Business Establishments Act B.E. 2559 (2016) and its amendments.

These businesses are further regulated under the Ministerial Regulation on the Specification of the Business of Caring for the Elderly or Dependent Persons as a Health Business Establishment B.E. 2563 (2020) (the “Ministerial Regulation”).

The Ministerial Regulation classifies this Business into three distinct categories, as The key details of these initiatives are outlined below:

For each category, business owners must adhere to specific requirements, such as implementing enhanced safety measures for businesses offering overnight accommodations or residential services. Licensing costs also vary depending on the type of service provided and the size of the service area, which is calculated based on square meters.

To obtain the required license, applicants must submit an application form to the Health Service Support Center under the Department of Health Service Support, Ministry of Public Health.

2.Additional Requirements for Foreign Companies

Under Thailand’s Foreign Business Act B.E. 2542 (1999) (the “FBA”), a company incorporated under a foreign law or a company incorporated under Thai law with foreign shareholders holding 50% or more of the shares is classified as a foreign company.

The business of health care is categorized as a business under List 3 of the FBA, in which a foreign company must obtain authorization from the Foreign Business Administration Division, under the Department of Business Development (DBD), Ministry of Commerce (MOC).

3.Business Incentives

1. 1. Specific criteria on the Senior and Dependent Business

• • The incentives by the Board of Investment (the “BOI”) are outlined in the Announcement of the BOI No.9/2565, setting the criteria for entities operate the senior or dependent care business, as detailed below:

1. 2. Benefits

• • The entities being granted BOI incentives under the criteria are entitled to enjoy the benefits granted as follows:

In conclusion, as one of the world’s aging societies and a renowned global health and wellness destination, Thailand has experienced a growing demand for health-focused and well-being services. To support this trend, the government, through the Board of Investment (BOI), offers attractive incentives, including corporate income tax exemptions, reductions in import duties, and various non-tax benefits, specifically targeting high-potential sectors such as senior and dependent care businesses.

While foreign companies face additional operational requirements and are currently ineligible for BOI incentives due to structural restrictions, they still have opportunities to enter this promising sector. Operators must also comply with a range of licensing and legal obligations, including obtaining health business licenses and adhering to stringent safety and waste management regulations.

Despite these challenges, the senior and dependent care business sector presents significant investment potential in Thailand, underpinned by the country’s demographic trends and strong health and wellness reputation.

For businesses in the senior and dependent care sector, ILAWASIA provides expert legal advice and comprehensive regulatory support to ensure compliance and help clients capitalize on emerging opportunities in this dynamic industry. Let us be your trusted partner in navigating the evolving legal landscape and driving the success of your business.

Author:

Tanadee Pantumkomon, Partner;

Thanaphorn Kaewsukko, Associate; &

Kornkod Suk-aram, Associate.

PRESS RELEASE

Division : The Executive and Management Dated :   20 January 2025

Subject : ILAWASIA Co., Ltd. Expands Footprint with the Launch of ILAW SINGAPORE PTE. LTD.

ILAWASIA Co., Ltd., a leading regional law firm renowned for its legal solutions and client-centric services, is proud to announce the opening of its new branch office, ILAW SINGAPORE PTE. LTD. This expansion marks a significant milestone in the firm’s strategic growth, positioning it to better serve clients across the Southeast Asia region and beyond. The Singapore branch will specialize in Management Consultancy Services, offering expertise to businesses navigating complex regulatory environments and pursuing sustainable growth strategies.

Located in one of the world’s most vibrant financial hubs, ILAW SINGAPORE PTE. LTD. is set to provide high-quality consultancy services tailored to meet the evolving needs of businesses in the global market.

Mr. Somphob Rodboon, Managing Partner of ILAWASIA Co., Ltd. and ILAW SINGAPORE PTE. LTD., delivered a compelling speech: “Today, we celebrate not only the opening of a new office but also the beginning of a new chapter in our journey to support businesses in achieving their goals. Singapore, as a global hub for trade, finance, and innovation, offers unparalleled opportunities for collaboration and growth. With the establishment of ILAW SINGAPORE PTE. LTD., we reaffirm our dedication to empowering clients with strategic insights and tailored solutions that address the unique challenges of today’s dynamic business landscape.”

With this new affiliate office, ILAWASIA aims to strengthen its presence in Southeast Asia, by providing comprehensive management consultancy services to a diverse client base that includes startups, multinational corporations, and local enterprises. ILAW SINGAPORE PTE. LTD. will focus on areas such as regulatory compliance for corporate entity to help businesses thrive in an increasingly competitive environment.

The establishment of ILAW SINGAPORE PTE. LTD. highlights ILAWASIA’s vision to expand its services across key markets, reinforcing its position as a trusted partner in the region’s legal and business ecosystem.

For more information about ILAW SINGAPORE PTE. LTD. and its services, please contact: info@ilawasia.com

We are delighted to announce that ILAW Cambodia Law Office has officially become a member of the Indian Business Chamber in Cambodia (IBCC). This milestone marks an exciting opportunity to strengthen ties and foster collaboration between Cambodia and India.

Through this membership, we aim to play an active role in bridging trade and investment between the two nations, facilitating growth, and creating mutually beneficial opportunities. Our team is dedicated to serving the Indian business community in Cambodia, offering tailored legal services to meet the needs of enterprises and individuals of all sizes.

At ILAW Cambodia, we believe that collaboration and shared vision are key to driving economic and social progress. As a member of the IBCC, we look forward to contributing to the chamber’s mission of supporting the Indian diaspora and advancing Cambodia-India business relations.

We are excited about the opportunities this partnership brings and remain committed to delivering exceptional legal support to the Indian community and businesses in Cambodia.

#ILAWCambodia #ILAWASIA

IN BRIEF
Since 2019, the COVID-19 pandemic has drastically reshaped traditional retail, pushing consumers toward online platforms during global lockdowns and fueling an E-commerce boom.

As the world recovers, this shift in consumer behavior is here to stay, with platforms like Shopee, Lazada, and TikTok becoming integral to everyday shopping. For businesses, adapting to E-commerce isn’t just an option—it’s essential for survival and growth.

In this article, The Firm will explore the taxation landscape for E-commerce in Thailand, focusing on income tax and VAT; and will outline the key legal frameworks that E-commerce operators need to navigate to thrive in this digital marketplace.

KEY TAKEAWAYS

1. 1. A .Income Tax
      1. I. Personal Income Tax (PIT): The tax rate for individuals with E-commerce income in Thailand is calculated using both progressive and flat rates, with the method resulting in the higher tax amount being applied. Individuals must submit the personal income tax form (Por Nor Dor. 94) from July to September of the tax year and the form (Por Nor Dor. 90) between January and March of the following year.The calculation method is as follows:
      2. • Progressive Tax Rates
         The progressive tax calculation is based on income from taxable income with deduct expenses, and deductibles under tax laws and regulations. This amount is then multiplied a progressive-tax rate as follows:

         1. Rate of Income (THB)	Tax Rate (%)
            0-150,000	0
            150,001-300,000	5
            300,001-500,000	10
            500,001-750,000	15
            750,001-1,000,000	20
            1,000,001-2,000,000	25
            2,000,001-5,000,000	30
            Over 5,000,000	35

      3. • Flat Tax Rate:
         The flat tax calculation is based on income without any deductions. This amount is then multiplied by a flat-tax rates as follows:

         1. Rate of assessable Income (THB)	Tax Rate (%)
            Up to 120,000	0
            Over 120,000	0.5

   2. 1. ii. Corporate Income Tax (CIT): The tax rate for general companies or limited partnerships with E-commerce income in Thailand is 20% of the company’s or partnership’s net profit. Therefore, companies or juristic partnerships with a 12-month accounting period are required to submit the corporate income tax return (Form Por Nor Dor. 51) within 2 months from the last day of a 6-month period, starting from the first day of the accounting period.

1. B. Value Added Tax (VAT)
   A tax levied on the sale of goods and services at each stage of production and distribution. This tax applies to both domestically produced goods and services as well as those imported from abroad. In the context of E-commerce, businesses engaged in selling goods and services on online platforms are subject to VAT. This means that E-commerce operators must ensure compliance with VAT regulations as part of their business operations which detail as follows;
2. 1. I. VAT Registration: In case E-commerce business has a revenue of more than 1.8 million Baht per year, it is necessary to register for VAT within 30 days after the revenue exceeds this threshold. VAT registration can be done at the local Revenue Office or via the internet.
   2. II. VAT Rate: E-commerce business is required to collect VAT (currently at the rate of 7%) of the purchase price or service price from consumers after registering for VAT.
   3. III. Monthly Report: After registering for VAT, the VAT report must be filed every month by the 15^th date of the following month.
3. C. The up-coming of “Digital Economy and Taxation”
   According to the World Bank, the “digital economy” has represented over 15.5% of global gross domestic product (GDP) in the last 15 years, expanding at a rate 2.5 times faster than that of the overall GDP. In light of this growth, the European Commission (EC) proposed in 2018 the introduction of a Digital Service Tax (DST) set at 3% on revenues from online advertising, digital intermediary services, and the sale of user data are considered part of the E-commerce business. This initiative aims to foster fairness among businesses and utilize tax revenue for national development.While Thailand has yet to adopt a specific digital services tax, discussions regarding the taxation of digital services are actively ongoing, particularly as international standards continue to evolve.

1. CONCLUSION
   In conclusion, in addition to registering other licenses related to E-commerce businesses, such as direct sales licenses, E-commerce businesses in Thailand are subject to both corporate income tax and VAT. It is crucial for businesses to understand their tax obligations, maintain accurate records, and ensure compliance with relevant regulations.
2. For businesses eager to dive into this thriving industry, ILAWASIA offers expert legal counsel to navigate the complex regulatory landscape. ILAWASIA is a one-stop service for legal consultation, providing a comprehensive range of services tailored for the E-commerce businesses. Our expertise includes:
   • • Company Setup
   • • VAT registration
   • • Tax Planning
   • • E-Commerce Business Licenses
   • • Direct-Sale Business Licenses
   • • Contract Negotiation e.g. supply contracts, sale and purchase agreements and insurance
   • Import and Export of Products Licenses

   We ensure your business stays compliant and competitive, helping you seize opportunities without legal hurdles. Partner with us, and let’s grow your business in Thailand’s dynamic and evolving E-Commerce businesses in Thailand.

   AUTHOR

   • • Tanadee Pantumkomon, Partner
   • • Nannapas Phatcharakeatkanok, Senior Associate
   • • Kamintra Piriyayon, Associate

   They can be reached at corporate@ilawasia.com

ILAW Laos is honored to be recognized as a Tier 2 Leading Firm by Legal 500 for the second consecutive term.

This achievement reflects our dedication to providing top-tier legal solutions and reinforces our position as a trusted advisor in the legal landscape of Laos

We sincerely thank our clients, colleagues, and partners whose trust and support have been instrumental in achieving this milestone.

#ILAWLAOS #Legal500 #LeadingFirm

A. Legislation:

In 2021, the Ministry of Technology and Communication has issued the Ministerial Decision on experimenting with digital asset transactions No. 888.MTC, dated November 9, 2021. To defines the types, regulations and measures regarding the trial of digital asset transactions in the Lao PDR to be safe, reliable and effective, aiming to protect the rights and legitimate interests of the transaction operators and service users to contribute to the economic and social development of the nation.¹

After that, the Bank of Lao PDR (BOL) has issued the Ministerial Decision on the trial operation of Crypto currency Trading Platform No. 777.BOL, date December 15, 2021; to defines the principles, regulations and measures regarding the operation of crypto currency trading during the trial period in order to make the management, risk management and operation of crypto currency trading stable, safe, reliable and effective, aiming to protect the rights and legitimate interests of service users and contribute to the development of the financial and monetary institution system as well as the economic and social development of the nation.²

B. Requirements for Operator of Cryptocurrency Trading Platform

• • Must have Lao shareholder(s) to hold at least 51% of the total share;³
• • The register capital is at least 10.000.000 USD (TEN MILLION US DOLLARS)⁴
• • Must be a company registered as an enterprise in the Lao PDR to exclusively operate shopping centre business Cryptocurrency only;⁵
• • Must have at least one manager who holds Lao nationality and has a passport in Lao PDR;⁶

¹Article 1 of Ministerial Decision on experimenting with digital asset transactions No. 888.MTC, dated November 9, 2021.

²Article 1 of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021.

³Article 8 (No.3) of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021.

⁴Article 10 of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021.

⁵Article 8 (No. 1) of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021.

⁶Article 8 (No. 4) of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021.

• • Must be in a cooperation and connection system with commercial banks under the management of the Bank of the Lao PDR⁷

C. Required Supporting Documents

• • Feasibility study and its timeframe⁸
• • Security system⁹
• • Business Impact Analysis (BIA), Business Community Management (BCM), Business Community Planning (BCP), and Complexity¹⁰
• • Internal Control System¹¹
• • Anti Money Laundry Policy¹²

D. Requirements of Digital Asset Businesses¹³

1. I.  For cryptocurrency mining activities:

• • Royalty fee for permission to conduct cryptocurrency mining transactions is collected once in the amount of 500,000 US dollars (five hundred thousand US dollars) per license;
• • Cryptocurrency mining enterprises must pay a tax based on the size of electricity supply: every 10 (ten) megawatts must pay 1,000,000 US dollars (One Million US dollars), which means that every 1 (one) megawatt in the contract must pay 100,000 US dollars (One Hundred Thousand US dollars), by giving it to the state budget in instalments (4 (four) instalments per year). Delivery of each instalment shall be no later than the 20th day of the first month of the next instalment. Starting from the 3rd

⁷Article 8 (No. 6) of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021.

⁸Article 9 (No. 9.4; 9.5;) of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021.

⁹Article 9 (No. 9.6) of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021.

¹⁰Article 9 (No. 9.7) of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021.

¹¹Article 9 (No. 9.8) of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021.

¹²Article 9 (No. 9.11) of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021

¹³Article 10 of Ministerial Decision on experimenting with digital asset transactions No. 888.MTC, dated November 9, 2021.

• • year onwards, there must be a review of the payment of taxes in the form of assigning a new contractor
• • Exemption from importation of electronic equipment used in cryptocurrency mining.

1. II.  For cryptocurrency transactions:

• • One-time fee for the license to operate the cryptocurrency trading center is 1,000,000 US dollars (one million US Dollars) per license;
• • Crypto currency buying and selling service enterprises (centers) must pay a Lump-Sum tax at the rate of 15% (fifteen percent) of the fees that the service center collects from buyers and sellers at the time of buying and selling each time by giving it to the state budget in installments (4 (four) installments per year). Delivery of each installment not later than the 20th day of the first month of the next installment.
• • 3. The obligations above are defined as principles for business operators to implement. In addition to the above, business operators and those with income must comply with relevant laws and regulations.

E. Application Process, Time frame and Government Fees

1. I. Application Process:

According to Article 11 of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, dated December 15, 2021:

• • Step 1. The Bank of the Lao PDR must consider the application for Crypto currency Trading Platform Business and give an answer in principle within 30 days from the date of receipt of complete and accurate document.
• • Step 2. After receiving the letter of approval in principle, those who intend to apply for a cryptocurrency trading center must fulfill the following conditions:

• • – Pay one million US dollars in Royalty fees to the Ministry of Finance;
  • – Pay up fully registered capital;
  • – Have operation office and equipment to serve the appropriate business operations;
  • – Have an operating system and an information technology system that can meet the operation of the cryptocurrency trading center and obtain a technical standard certificate for the trading system.
  • – Compose standard staffs in sufficient numbers
  • – Meet other conditions as determined by the Bank of the Lao PDR.

• •  Step 3: The Bank of Lao PDR will issue a business license to those who intend to apply for a license to Crypto currency business, have fully fulfilled the conditions set forth in Step 2 and such applicant must be active in business within thirty days from the date of receiving the business license.

In the case of those who intend to operate a cryptocurrency trading center, if they cannot fulfill the conditions as defined in Step 2 with sufficient reasons, the Bank of Lao PDR may extend the time to fulfill the conditions to 45 days. If not, the officer will issue the rejection of the application.

1. II. Time frame

Approximately 60-90 Days, including the preparation of applications and supporting documents and approval process.

1. III. Government Fees

• • Application Fee:20,000,000 LAK (Twenty Million Lao Kip) (approximately 920 USD) per one application on the date of submission the application;
• • License Fee: 5,000,000 LAK (Five Million Lao Kip) (approximately 240 USD) per one license and it must be paid on the date of receiving the License.
• • Operation Annual fee: 0.1% of the total revenue.

F. Conclusion

The regulatory framework for cryptocurrency businesses in Laos, as outlined in this article, reflects the Lao PDR’s commitment to fostering a secure and efficient digital asset environment. With clear requirements for operators, robust taxation measures, and government oversight, the country has established a foundational structure to attract investment while ensuring compliance and stability in this emerging sector.

For businesses seeking to navigate these complex regulations, ILAW LAOS offers unparalleled expertise and guidance. As a prominent legal entity, ILAW LAOS has built a strong reputation for its comprehensive understanding of local and regional laws. The firm’s team of experienced professionals is adept at assisting clients in meeting regulatory requirements, securing necessary approvals, and mitigating risks associated with this dynamic market.

¹⁴Article 14 of Ministerial Decision on the trial operation of Cryptocurrency Trading Platform No. 777.BOL, date December 15, 2021.

AUTHOR

• Tanadee Pantumkomon, Partner; and
• Viphavanh Syharath, Associate.