Parliament approves tax law with rates starting at 3pc

Parliament on Thursday approved the 2019 Union Tax Law, under which the tax rate for unassessed income is now as low as 3 percent.

The motion was approved after the majority of MPs voted in favour of the new tax rates, which will take effect in the new fiscal year beginning October 1. Out of the 570 MPs, 498 voted yes to the proposal.

Under the new law, tax rates will be as low as 3pc for unassessed income up to K100 million, 5pc for between K100 million and K300 million, 10pc for income between K300 million and K3 billion and 30pc for income above K3 billion.

Currently, such sources of income are subject to income tax at rates ranging from 15pc to 30pc.

The 2019 Union Tax Law was submitted to Parliament by the Ministry of Planning and Finance during the August.

Last year, a similar proposal for citizens with undisclosed sources of income on which tax was previously unpaid or underpaid to be subject to lower tax rates was rejected by Parliament.

According to the Joint Bill Committee as reported by The Myanmar Times at the time, the amnesty was omitted due to issues relating to fairness. The tax amnesty essentially allows those who avoided paying tax in the past to pay lower taxes compared to those who had abided by the law. It could also permit them to escape punishment for tax evasion.

Source: Myanmar Times

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