Amended investment law offers tax incentives, shortens concession period
Amendments to the Investment Promotion Law offer more tax incentives and shorter investment concession periods in a bid to attract more investors while ensuring closer scrutiny of their operations. A draft amendment to the law, which was passed by the National Assembly last week, shortens the investment concession period from 99 years to 50 years, a change that was widely welcomed by NA members during parliament’s ordinary session. Deputy Minister of Planning and Investment Dr Khamlien Pholsena told Vientiane Times on November 20 he believed that the proposed 50 year concession period would remain unchanged even though changes could be made to the original draft in line with recommendations by lawmakers. However, the 50-year period was not set in concrete. If deemed necessary, an investment project concession can be extended, Dr Khamlien told parliament as he was presenting the draft. The newly-added Article 40 defines the criteria that enable an investor who fulfills the criteria to transfer their investment projects or businesses. This is aimed at limiting the problems that can arise when an investor seeks to sell an investment project for which they have been granted a concession.
