Myanmar Corporate Tax

With-Holding Tax wef  1 April 2017

* include sales of land, building, share and bonds. For oil & gas sector the capital gain tax is 40 – 50%.
# payment to 3^rd 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 22%. Non-resident company such as a Rep Offices are also taxed at 22%.

The income tax exemption threshold for newly incorporated small or medium-sized enterprise (based on industry) for the first three consecutive years from the date of business commencement from MMK 10,000,000 to MMK 15,000,000.

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%.

Battery Electric Vehicles and Solar/ Photovoltaic equipment and its components are exempted from commercial tax.

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 or Escaped 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:

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