There are several classes of taxes under laws of Myanmar (Burma): income tax, commercial tax, profit tax, lottery tax, and stamp duties. These are administered mainly by the Internal Revenue Department under the Ministry of Finance and Revenue.
Tax returns must be filed with the Internal Revenue Department before June 30 each year following the income year. For a business being discontinued, the return must be filed within one month from the date of business cessation. Tax returns for capital gains must be filed within one month of the disposal of the relevant capital asset.
If a foreigner is defined as a non-resident foreigner (i.e. resides in Myanmar less than 183 days in a given year), the foreigner pays tax only on income earned in Myanmar (Burma). The basic tax rate is 35 percent of the total income. If the income is earned in foreign currency (regardless of where paid), the income tax shall be paid in such foreign currency. If, however, the income tax calculated at the relevant rates on the progressive scale of five to forty percent for income earned under the headings “profession, business, property, income from undisclosed source and income from other sources” exceeds the tax calculated at 35 percent, then the tax based on the progressive scale must be paid. Therefore, the tax rate is a flat 35 percent or on a progressive scale of five to forty percent, whichever is higher. Foreign company branches registered in Myanmar (Burma) are deemed non-resident foreigners for tax purposes and are taxed under this higher tax rate basis.
Myanmar (Burma) has double taxation agreements with the United Kingdom, Malaysia, Singapore, Vietnam, Thailand, the Republic of Korea, and Indonesia.
For more insight into the workings of the Burmese economy and political climate - be sure to check out our section on Business in Myanmar (Burma).
This article has been prepared by DFDL exclusively for www.MyanmarBurma.com. The information provided in this article is based on our understanding of publicly known Myanmar laws, regulations and official practices as of 21 November 2012 and may be affected by laws that are subsequently adopted by Myanmar Parliament or notifications that are adopted by various ministries. There may also be instances where the unofficial practices applied by the Myanmar Government authorities (including the tax authorities) are not in accordance with or even contradictory to Myanmar law. More importantly, as the decisions of the courts and tax authorities are not made publicly available, it is possible that the tax authorities or the courts will adopt an interpretation of Myanmar laws which is not in accordance with our interpretation.
Further, this article is for information purposes only and is not, and is not intended to be or constitute legal, financial, technical, insurance or tax advice or DFDL’s opinion on any matter, subject or thing and should not form the basis for any decision to enter into, nor is it intended to be a recommendation or similar by DFDL in respect of or under or in connection with, any transaction in Myanmar.
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