Laos scores well in freedom from the Government and fiscal freedom. Income and corporate tax rates are high, but overall tax revenue is relatively as a percentage of GDP. Government spending is also fairly low, and the Government does not receive a large amount of its income from state-owned businesses
Laos' foreign investment law guarantees foreign investment the their investments will be protected, that their property will not be confiscated without compensation, that their operations will be free from government interference, and that they have a right to lease land and repatriate earnings. However, foreign investment is threatened by the country's macroeconomic instability, particularly the tendency for the currency to weaken, and the potential for deterioration in security. All capital transactions require central bank approval