Under the income tax law itl, if a company sustains a loss, it can be utilized against future profits and carried forward for up to three consecutive years, with the exception of capital losses. Myanmar update on the union tax law 2019 insight baker. Following the passage of the income tax act, 2015, act 896 as amended the act in 2015, ghanas finance minister has issued the income tax regulations, 2016, l. December, 2019 myanmar tax administration law 2019 burmese taxation october 28, 2019 what is erp. Pyi taw council, union ministries,central bank of myanmar, region or state. It clarifies certain points of confusion, reflects the restructuring of the internal revenue department ird and changes to the tax system that have occurred over the past year, and. Guide to taxes in myanmar bracketsincentives asean up. In myanmar, capital gains are treated as income and fall within the scope of the income tax law. New businesses enjoy a tax holiday if their income does not exceed 5 million ks.
The utl 20182019 sets out provisions in relations to the income tax law, commercial tax. There is no withholding tax on dividend in myanmar. Corporate tax rates in myanmar burma companies formed under myanmar law are taxed at a rate of 25%. Therefore, the tax rates from 2016 will still apply. Still, even with this change, the fastest way to get a refund is to file electronically and choose direct deposit. For instance, during the 2016 17 financial year, taxation revenue was only 6. On 7 june 2019, the union parliament pyidaungsu hluttaw enacted law no. A law change that went into effect this year requires the irs to hold refunds on tax returns claiming the earned income tax credit eitc or additional child tax credit actc until at least feb. Total tax mmk monthly tax mmk details calculation for taxable income. The 5th imfjapan highlevel tax conference for asian countries tax systems in myanmar, tokyo, april 23, 2014. Interest paid to a nonresident of myanmar is subject to withholding tax of 15 percent. Central bank of myanmar cbm may have to follow the same. The amended income tax law 2016 has formalized the name change by replacing the name companies circle tax office to medium taxpayers office throughout the law.
The union tax laws 201420152016 provisions related to tax policy such as. Such assessment system is known as official assessment system oas and under oas. Special goods tax law amended back the myanmar government has recently introduced significant amendments to the law on special goods tax sgt, including the tax base for computing sgt, and reporting requirements for sgtregistered exporters and manufacturers of locallyproduced regulated and nonessential goods. For more information please write to info at for a consultation. Amendments to myanmar s tax regime have been longawaited. This law shall extend to the whole of the republic of the union of myanmar and shall also apply. In this newsletter, we have outlined the significant changes that may impact most of the investors doing business in myanmar. According to the myanmar law, there are two ways you could pay your tax. If you go the legal route and declare your income, you pay a hefty 25% of tax. Sources at the ird said they will issue further notifications, if required, to add to the myanmar tax law, while the union tax law, which governs commercial and income tax rates, will be updated based on.
Nondeductible expenses are also stated in the myanmar income tax law. Government of the republic of the union of myanmar incometax law as amended up to november 2011 november 2011. Interactive tax assistant ita find reliable answers to your tax questions. Income tax law 1974 as amended by union tax law 2017 law relating to overseas employment 1999 labour organization law 2011 social security law 2012 settlement of labour dispute law 2012 as amended 2014 employment and skills development law 20 minimum wage law 20 payment of wages law 2016. Myanmar highlights 2019 rate a 25% tax rate applies to companies incorporated under the myanmar companies law and foreign organizations that have obtained special permission to be engaged in statesponsored projects or undertakings. E 24th march, 2014 the pyidaungsu hluttaw hereby enacts this law. Substituted by section 9 of the law amending the commercial tax law, 2011. Capital gains are taxed at a rate of 10% where the proceeds of all assets disposed exceed mmk 5,000,000 for resident companies and 40% for nonresident companies. Law amending the income tax law pyidaungsu hluttaw law no. The taxation of the union law, 2016 internal revenue department. Law amending the income tax law myanmar law library.
The union tax laws 20142015 2016 provisions related to tax policy such as tax rates. Com unofficial translation union tax law 2016 pyidaungsu hluttaw law no 22 of 2016 the 1 waning day of pyatho 77 m. Newly established small or medium enterprises shall not pay income tax on net profits not exceeding mmk 10,000,000 during the first three 3 consecutive years including the. For more information on corporate income tax and its exemptions, personal income tax, the commercial tax and other specific taxes applied on particular goods and revenue sources together with information on registration and payments, check myanmar tax leaflet 2016 created by deloitte and the website of the inland revenue department of myanmar. Myanmar tax alert is issued exclusively for the information of clients and staff of kpmg advisory myanmar ltd and should not be used or relied upon as a substitute for detailed advice on the basis for formulating business decisions. 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. The regulations, which came into force on 4 july 2016, amplify the provisions in the act. Indirect tax commodities produce by enterprises established. Resident entities, which are defined as companies established. Incometax law as amended up to november 2011 november. Incometax law,1974 contents chapter section particulars page. Companies doing business in myanmar, or planning to do so, are advised. Profit tax is charged on income from small scale owners who do not keep proper book of accounts. Section 4 of the income tax law shall be substituted as follows.
In 2016, the myanmar parliament passed the union tax law 2016 ahead of the usual schedule it had established over the last 2 years. The following expressions contained in this law shall have the meanings given hereunder. The internal revenue departments ird latest income tax rules are out and they are geared toward persuading tax player to reveal their sources of income. The law amending the income tax law 2016 the amended law was enacted on 31 august 2016 and is effective for the current 20162017 income year. On march 24, 2014, the union government enacted two new tax laws with immediate effect. 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. Capital gains there is no separate capital gains tax law. On 28 march 2014, the union of myanmar revenue law of 2014.
The state law and order restoration council the commercial tax law the state law and order restoration council law no. For example, if you earn mmk 1,632,000 per month, please see below, monthly salary mmk income for 12 month s personal relief. Oct 27, 2016 these incentives generally take the form of exemptions and relief from income tax, customs duties and other internal taxes in myanmar. March to 30 september, the union taxation law utl 20182019 has now.
Tax updates pwc myanmar l tax services the amended income tax law the amended law has been approved by the parliament on 31 august 2016 and was published in the local newspaper on 1. A few tax relief measures were incorporated in the draft of the 2018 union tax law. Myanmar investment law directorate of investment and. This is very much welcomed as tax payers would have some time to understand some of the proposed changes prior to their effective date at the start of the next fiscal year on 1 april 2016. This is very much welcomed as tax payers would have some time to understand some of the proposed changes prior to their effective. Broadly speaking, the union tax law 2014 has introduced changes to. For instance, during the 201617 financial year, taxation revenue was only 6. The union tax law 2017 utl 2017 will commence operation on 1 april 2017.
March related to legislative changes whilst the union tax law introduced the respective tax rates for the fiscal year 20142015. Income tax, comprising both personal and corporate income tax, is paid to the internal revenue department ird. Royalties paid to a nonresident of myanmar are subject to withholding tax of 20 percent. The 2016 law follows a more nuanced scheme when compared with the 2012 law in relation to the grant of income tax exemptions to foreign investors. These incentives generally take the form of exemptions and relief from income tax, customs duties and other internal taxes in myanmar. Incometax law chapter i title, application and definitions 1. We discuss below the key changes introduced by the utl 2019. After the union tax law 2016 was approved by parliament on january 25, the ird announced the new tax laws for the coming fiscal year through state owned newspapers on. During a meeting with the yangon regional government held at mcc on february 17, construction developers urged the government to temporarily reduce the commercial tax from 30 percent to 5 percent for a period of two years. Notable changes include amendments to the personal income tax rates and their application. Union taxation law 2017 has been enacted introducing changes to the special goods tax, commercial tax and income tax regime that are effective from 1 april 2017. Your baby cant be a citizen of myanmar if you and your other half are not myanmar nationals. Capital assets also include shares, bonds and similar instruments. This alert highlights some of the key changes introduced by the income tax regulations, 2016.
Individuals earning up to mmk4,800,000 are now exempt from tax previously mmk2,000,000 individuals earning up to mmk4,800,000 are now exempt from tax previously mmk2,000,000. Under myanmar income tax law, dividends received are not subject to income tax. 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. Sep 27, 2019 with the tax policy remaining unchanged, car trade has picked up a bit in the last two weeks, according to the automobile market. Changes to income tax under section 19 e of the union taxation law 2018, the income tax rates levied on partnerships shall be as below, on net income after deducting allowances under section 6 of the income tax law. This represents a positive change in direction for the myanmar tax system in providing a way to update the tax legislation on an annual basis. This law shall be called the myanmar investment law. Amending law of income tax lawmyanmar engineering council lawcomputer science development lawamending law of myanmar stamp actprofit tax law. Special corporate income tax incentives under the sez law include a tax exemption for the first seven years for investors in a free zone. The legal aid law burmese pyidaungsu hluttaw law no. Union tax law 2016 brief background in 2016, the myanmar parliament passed the union tax law 2016 ahead of the usual schedule it had established over the last 2 years. The myanmar stamp act1899 the court fees act1870 4.
Therefore, dealers were observing the automobile market in the first three months of the calendar year. However, please note that cit rate for companies listed on the yangon stock exchange is 20%. Myanmar is reported to have passed the union tax law 2016, which took effect on 1 april 2016. 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. Corporate income tax the rate of corporate income tax remains unchanged at 25% under the new union tax law, 2017. These are the law amending the income tax law, pyihtaungsu hluttaw law no. Itl income tax law meb myanmar economic bank mfil myanmar foreign investment law mftb myanmar foreign trade bank mic myanmar investment commission mmk myanmar kyat ofac office of foreign assets control scb state commercial bank see stateowned economic enterprise sez special economic zone spdc state peace and development council. A fullyear depreciation allowance can be claimed for the year. The myanmar licensed contractors association welcomed the income tax reduction in the union tax bill 2018, and supported. The amended income tax law the amended law has been approved by the. I hereby sign according to the constitution of the republic of the union of myanmar. Myanmar tax law the myanmar income tax law, 1974 the commercial tax law,1990 the union of myanmar foreign investment law 2012 and latest notifications issued by ministry of finance and revenue dated june 2012 applicable laws to individuals, companies and jointventures. Tax rates in myanmar burma for 20162017, 20152016, 20142015. The ita asks a series of questions and immediately provides answers on a variety of tax law topics.
Stamp duty the myanmar stamp act 1899 the court fees act 1870 4. Myanmar continues to push tax reforms with the passage of five new tax laws. Home law library laws and regulations laws myanmar laws 1988until now union solidarity and development party laws 2012 2016 myanmar laws 2014 pyidaungsu hluttaw law no. Find publications and packages of the 2016 official irs preprinted forms used to file individual federal income tax returns with the internal revenue service for citizens or residents of the united states. Law amending the income tax law pyidaungsu hluttaw. Under myanmar income tax law itl 1974, tax assessment will be made by the head of internal revenue department ird based on the tax returns lodged by the taxpayers. More tax laws planned the internal revenue department ird currently sets polices under the myanmar tax law and the union tax law. Advance payment of 2% cit on importation and exportation companies importing or exporting goods must pay a 2% advanced income tax on. Irs tax map includes official guidance, forms, publications, frequently asked questions, and news relevant to your topic. The withholding tax rates on interest and royalty payments made to nonresidents of myanmar may be reduced by an applicable income tax treaty. Myanmar union tax law, 2016 to look at corporate tax click here for more information please write to info at consultmyanmar.