Myanmar continues to push tax reforms with the passage of five new tax laws. Myanmar tax update 2017 4 holding tax shall be imposed. The union tax laws 201420152016 provisions related to tax policy such as. Nondeductible expenses are also stated in the myanmar income tax law. Transitory provisions consequent on the constitution of the.
A branch of a foreign company is taxed at a 25% rate on myanmarsource income. Instead, gemstones are now regulated under the myanmar gemstones law which imposes tax on uncut gemstones, polished gemstones, jewelry and items made with. Myanmar introduces a draft new income tax law comprehensive amendments to the legislative framework for income tax as part of its sustained strategic reform programme to modernise myanmar and advance economic transformation. Myanmar gemstone law 2019 with the tax rates as provided in the table below. The myanmar law information system is a website providing service of the myanmar law information sel font zawygione pyidaungsu by menu all search union laws subordinate legistration of union laws region or state laws self administrated zonedivision laws treaty precedent schedules or forms. The myanmar tax calculator is a diverse tool and we may refer to it as the myanmar wage calculator, salary calculator or myanmar salary after tax calculator, it is however the same calculator, there are simply so many features and uses of the tool myanmar income tax calculator, there is another.
With a strong appetite for development, myanmar has adopted a very accommodating fiscal regime. In accordance with section 25 of the utl 20182019, the income tax shall be assessed at the rate. Special corporate income tax incentives under the sez law include a tax exemption for the first. Union taxation law for year 20192020 burmese myanmar law. In october 2019, the internal revenue department of myanmar ird released draft new income tax law for comment.
Commercial tax at 5% for importing, production, selling and trading according to section 14 b and c of the union. We discuss below the key changes introduced by the utl 2019. 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. If the employee will earn not more than 4,800,000 mmk per year, heshe is not eligible for personal income tax. Relief or exemption from income tax the new union tax law, 2017 expressly provides for the minis. Capital gains tax is levied on gains from the sale, exchange or. The relevant ministry shall collect the earmarked taxes at the tax rates contained in this law for the types of the taxes. Myanmar union tax law 2019 amended to provide conditional.
Union taxation law 2019, effective from 1 october 2019. Client alert myanmar introduces a draft new income tax law. On 28 march 2014, the union of myanmar revenue law of 2014. The 2019 union tax law was submitted to parliament by the ministry of planning and finance during the august. Advanced income tax on imports, exports reinstated after one year companies involved in imports and exports will be required to pay an advanced income tax ait of 2 percent from may 1, according to notification 382019 issued by the ministry of planning and finance on april 8. Stamp duty the myanmar stamp act 1899 the court fees act 1870 4. Guide to taxes in myanmar bracketsincentives asean up. Notable changes include amendments to the personal income tax rates and their application. The taxes received by the union contained in the laws relating to expenditure under the budget are the taxes earmarked for collection in table 1 of this law for the relevant financial year.
Under the myanmar income tax law, expenditure incurred for the purpose of earning income and depreciation allowance prescribed by the regulations shall be. Similarly, the personal income tax rates, corporate income tax rates as well as capital gains tax rates are the same as previous year and remains unchanged. On 24 september 2019, the myanmar government issued a new union tax law utl 2019 for the new financial year commencing on 1 october 2019. Many laws dating back to the colonial period and postindependence period are, with more or less changes, still in force. Special goods tax at the rate specified under section 11 of the union taxation law 2018. The draft new income tax law itl was released for public consultation at the end of november 2019. Under myanmar income tax law, dividends received are not subject to income tax.
Income tax is levied on gains from the sale, exchange or transfer of capital assets e. The utl 2019 reduces the progressive rates for tax on unassessed income, also known as black money tax, in what is essentially a conditional tax amnesty. December, 2019 myanmar tax administration law 2019 burmese taxation october 28, 2019 what is erp. On 7 june 2019, the union parliament pyidaungsu hluttaw enacted law no. The 5th imfjapan highlevel tax conference for asian countries tax systems in myanmar, tokyo, april 23, 2014. Capital gains there is no separate capital gains tax law. The myanmar stamp act1899 the court fees act1870 4.
This tal is one of the major pieces of tax legislation being introduced in myanmar as part of the internal revenue departments ird tax reform program. Myanmar employment law is governed by both old and new laws and regulations, as well as internal policies and practices of the department of labour of the ministry of labour, immigra tion and population ministry of labour. Under the myanmar income tax law, expenditure incurred for the purpose of earning income and depreciation allowance prescribed by the regulations shall be deducted from taxable income. The the commercial tax law in myanmar is a revenueraising measure similar, but not identical. Under myanmar income tax law, interest are subject to tax. The current corporate income tax cit rate is 25% for myanmar companies, branches registered under the myanmar companies law mcl 2017, and companies operating under permission from the myanmar investment commission. Based in yangon and we provide provide the following services to foreign investors. Member of union of myanmar federation of chambers of commerce and industry umfcci. A low corporate income tax, a progressive but low personal income tax, no vat but a light commercial tax and strong incentives, aim at attracting and helping companies to spur the development of myanmar s newly opened economy. Tax payers receiving more than the above amount will be taxed in the same tiered system on their total income as per the fiscal year 20152016.
For more information please write to info at consult myanmar. Home law library laws and regulations laws myanmar laws 1988until now union solidarity and development party laws 20122016 myanmar laws 2014 pyidaungsu hluttaw law no. It would appear that this new law, if it is passed in its current form will replace the existing income tax act,1974 and all subsequent updates and income tax law changes or notifications issued by the ministry of planning and. Myanmar update on the union tax law 2019 insight baker. According to the union tax law utl of 2018, anyone whose annual salary income is mmk4.
For example, if you earn mmk 1,632,000 per month, please see below, monthly salary mmk 1,632,000. A 2% advance corporate income tax is levied on the import and export of goods, and the tax is creditable against the corporate income tax liability of a resident entity at the end of the year. The taxable capital gain is calculated based on the difference between the sales proceeds and the cost of the asset, less the accumulated tax depreciation allowed under the myanmar income tax law. Capital gains tax is levied on gains from the sale, exchange or transfer of capital assets.