| Unreported income used (MMK) |
Income Tax Rates |
| 1 - 100,000,000 |
3% |
| 100,000,001 - 500,000,000 |
5% |
| 500,000,001 - 1,000,000,000 |
10% |
| 1,000,000,001 - 1,500,000,000 |
20% |
| 1,500,000,001 and above |
30% |
De-minimis threshold for capital gains has been raised to MMK
10million. In addition, capital gains taxes for non-residents
have been reduced to 10% in line with tax residents.
However, capital gains tax in the oil and gas sector will be
assessed in foreign currency if the transaction is carried out
in foreign currency. No changes were made to the capital gains
tax rates for the oil and gas sector.
| Unreported income used (MMK) |
Income Tax Rates |
| 1 - 100,000,000 |
3% |
| 100,000,001 - 500,000,000 |
5% |
| 500,000,001 - 1,000,000,000 |
10% |
| 1,000,000,001 - 1,500,000,000 |
20% |
| 1,500,000,001 and above |
30% |
Lowest Individual Tax Rate is 5% and Highest Rate is 25%
| Unreported income used (MMK) |
Income Tax Rates |
| 1 - 2 Million |
2% |
| 2 - 5 Million |
5% |
| 5 - 10 Million |
10% |
| 10 - 20 Million |
15% |
| 20 - 30 Million |
20% |
|
Over 30 Million |
25% |
A foreigner who works part of the year in Myanmar but who resides abroad is taxed at the rate of 35%. If the Myanmar-source income is paid in a currency other than kyat the tax must be paid in the currency in which the income was earned. Overseas Burmese citizens pay at a rate of 10%. The standard deduction is 20% of income but may not exceed 10 million Ks. for a single tax year. There is an additional spousal deduction of 500,000 Ks. and a 300,000 Ks. deduction for each child.
Companies formed under Myanmar law are taxed at a rate of 25%. New businesses enjoy a tax holiday if their income does not exceed 5 million Ks. for three years in a row.
There is a 5% tax on services
Dividends are not subject to withholding tax, regardless of the residence status of the recipient.
Interest paid to a non-resident of Myanmar is subject to withholding tax of 15 percent. Royalties paid to a non-resident of Myanmar are subject to withholding tax of 20 percent. The withholding tax rates on interest and royalty payments made to non-residents of Myanmar may be reduced by an applicable income tax treaty
There is a 10% capital gains tax except with respect to capital
gains earned in the oil and gas sector. These are taxed at
substantially higher and regressive rates (in billions of kyat):
0-100
40%
100-150
45%
150 and above
50%
There is a 10% capital gains tax except with respect to capital
gains earned in the oil and gas sector. These are taxed at
substantially higher and regressive rates (in billions of kyat):
Commercial tax on exports is at the following rates:
General
5%
Crude oil
5%
Natural gas
8%
Teak, hardwood logs
50%
Jade and gemstones
30%
Jewelry
10%
To promote local manufacturing, a rate of 2% instead of the
general rate of 5% is charged in respect of locally produced
goods.
The tax year follows the fiscal year, starting 1 April and ending 31 March. The annual tax return must be filed with the Internal Revenue Department by 30 June of the following income year. If a business is dissolved, an income tax return must be filed within one month from the time the business was discontinued.
Tax returns for capital gains under the income tax law are to be submitted within one month after the capital asset was disposed of.
In addition tax payers are required to file tax returns for withholding tax, commercial tax and individual income tax on a monthly or quarterly basis.