Myanmar Corporate Tax

 

With-Holding Tax wef  1 April 2017

 

 

Resident

 

Non-Resident

Dividend 0 0
Interest 0 15%
Royalties 10% 15%
Capital Gain* 10% 10%
Others# 2% 2.5%

* include sales of land, building, share and bonds
# payment to 3rd parties for procurement of goods and services

Resident is defined as a company that is incorporated under the Myanmar Companies Act or a foreigner that has done business in Myanmar for ≥183 days in a year.

Company Tax

Company that is resident in Myanmar is taxed at 25%. Non-resident company such as a Branch Offices are also taxed at 25%.

Commercial Tax

This is a sales turnover tax that has different tax rate depending on the category. For most goods & services it is taxed at 5%. For alcoholic beverages, cigarettes and luxury items the rate can be up to 100%.

Personal Income Tax

Salary income for resident is taxed from 1% to 25% on a progressive scale. To get more details about personal income tax click here

Black Money (Unreported Income)

“Black” money i.e. income that was previously unreported and unaccounted for or has never been declared by a Myanmar citizen or resident as an income before can be taxed up to 30% if you try to bring it back into the banking system and make it “white”. So if a Myanmar person wants to buy a property or expand his business and he suddenly want to deposit a big sum of money into his bank account but is unable to explain where he gets that money – he will be taxed accordingly based on the rate below:

Black Money (Kyat) Tax Rate
1 -30,000,000 15%
30,000,001 – 100,000,000 20%
100,000,001 and above 30%

 

For more information – please write to info (at) consult-myanmar.com for a consultation.