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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# 0%~ 2.5%

* include sales of land, building, share and bonds
# payment to 3rd parties for procurement of goods and services
~ Effective 1 July 2018, the existing 2 percent withholding tax will be removed on residents for payments to business and government agencies for payment within the country under a contract.

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 Rep Offices are also taxed at 25%.

Commercial Tax

From 1st April 2017 if the threshold amount to be liable for Commercial Tax  is ≥ Kyat 50 Million i.e. if your annual turnover is higher that this amount you are liable for commercial tax.  As of 1st October 2019, the annual turnover is calculated based on the 12 months turnover from the date of commencement of the business.

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 and tax has never been paid on it.

The Myanmar government has declared a tax amnesty to encourage tax payers to self-correct their previously declared income. Under the amnesty, if the taxpayer invests in purchasing capital assets, construction, acquiring and establishing a new business, or expanding its existing business, such income may be deducted. The amnesty period is from 1/10/2019 to 30/9/2020:

Unassessed income (Kyat) Tax Rate Remarks
1 -100,000,000 3% 3% if disclosure is made within the first 6 months of the amnesty; 5% if disclosure is made within the second 6 months
100,000,001 and 300,000,000 5%
300,000,001 to 1,000,000,000 10%
1,000,000,001 and 3,000,000,000 15%
3,000,000,001 and above 30%

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