fbpx

Myanmar to reinstate 30% tax rate on unassessed income

A tax amnesty for Myanmar citizens with unassessed sources of income introduced under the 2019 Union Tax Law will be repealed in fiscal 2020-21, which
commences on October 1, U Maung Maung Win, deputy minister of Planning, Finance and Industry, said at the Pyidaungsu Hluttaw on July 13, upon
submitting the Union Taxation Law Bill for the new fiscal year.

A 30 percent tax rate on all unassessed sources of income will be reinstated during the new fiscal period, he said. The move is expected to boost government coffers by up to K280 billion to around K2.8 trillion in fiscal 2020-21.

U Maung Maung Win said international organisations claimed the tax relief on unassessed income can encourage money laundering. As a member of the Asia-Pacific
Group on Money Laundering, Myanmar will offer the tax amnesty for just the one year to avoid that risk.

The existing 2019 Union Tax Law provides that tax rates will be as low as 3pc for unassessed income up to K100 million, 5pc for income between K100 million to K300 million, 10pc for income between K300 million to K1 billion, 15pc of income between K1 billion to K3 billion, and 30pc for income exceeding K3 billion. Prior to the introduction of the 2019 Union Tax Law, unassessed sources of income were taxed between 15pc and 30pc.

The tax is payable by citizens who cannot show the source of their income that was used for buying, constructing, or obtaining any assets, and establishing a new
business, according to an October 2019 note from law firm DFDL.

“The Internal Revenue Department uses this measure to ensure that the money used by its citizens for purchasing an immovable property or material purchases came from a properly-declared source, and such money has been properly subjected to tax,” DFDL explains. – Translated

To see the original article click link here

Source : Myanmar Times

NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, “Puma Energy”, “MOGE”, “yangon new town”,”MECTEL”, “hydropower”, etc.

.

Looking for foreign investors to invest in your business in Myanmar