Visitors gather outside the Kapok Star Hotel in the Golden Triangle Special Economic Zone. (File photo)

Golden Triangle revenue slumped in 2025 amid business closures

Business closures and weak tax compliance slashed revenue earned in the Golden Triangle Special Economic Zone to 32,273 million kip in 2025, down 48.98 percent from the previous year.
A report on tax collection showed that revenue fell by 127,729 million kip compared to 2024, reflecting slower business activity and ongoing economic challenges, according to the Socio-Economic News.
The report said 1,849 business units were registered in the Zone’s Tax Revenue Information System. Of these, 551 units have ceased operations, meaning that nearly one in three is no longer active.
In 2025, 1,298 business units renewed their contracts, 165 received taxpayer identification numbers, and 721 were issued tax compliance certificates.
Tax staff carried out their duties with a high sense of responsibility, the report stated, but several weaknesses remain.
The government’s National Agenda on the resolution of economic and financial difficulties has not yet been fulfilled. The survey and classification of businesses into three categories has also been delayed due to budget shortages, as the work involves multiple sectors.
The adoption of formal accounting systems by businesses earning 400 million kip or more has also not progressed as planned. This affects the accuracy of tax calculations and revenue collection.
Efforts to encourage businesses to file and pay taxes in line with the law have met with poor results. At present, only large businesses file taxes independently. Just 55 percent of all businesses in Bokeo province file tax returns as required by law, while 75.22 percent of businesses operating in the Special Economic do so. Other businesses file only when income is received or when submitting annual reports.
Training on the use of electronic systems for tax self-filing and payment has also fallen short of expectations.
In addition, challenges around debt collection persist. Some debts have remained unresolved for years and are linked to past budget expenditure, making settlement difficult.
Looking ahead, the Golden Triangle Special Economic Zone Tax Office plans to strengthen cooperation with the Zone Management Committee and the project developer. The office will encourage vehicle owners in the Zone to pay their annual road tax in line with higher-level directives.
It will also urge more businesses to regularly file and pay taxes based on their own accounting systems and using the Tax Revenue Information System.
In addition, the office will closely monitor salary income tax declarations and the payment of fees for the issuance and renewal of residence and identity cards for foreign nationals employed by the Dok Ngio Kham Group.
The aim is to ensure that 100 percent of these revenues is paid into the state budget in line with decentralisation rules.
Meanwhile, the tax office will continue to collect data on infrastructure projects and businesses that renew lease agreements. This will ensure more accurate calculations of taxes due and ensure they are transferred to the state budget in full.
To meet targets, tax officials have been instructed to strengthen planning, assign clear responsibilities, and carry out regular monitoring and performance reviews.
Despite the sharp fall in revenue, the report notes that progress has been made compared to previous years. But stronger law enforcement, better accounting practices, and improved compliance will be key to restoring revenue growth in the Zone.

By Times Reporters
(Latest Update March 2, 2026)