Myanmar

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Resident nationals and foreigners are taxed on their worldwide income under the Myanmar Income Tax Act.

Non-resident foreigners are taxed only on income derived from sources within Myanmar.

Foreigners working for Union of Myanmar Foreign Investment Law (MFIL) or Myanmar Investment Law (MIL) companies may be taxed at the same tax rates as a tax resident, regardless of their period of stay in Myanmar, under the tax incentives that may be granted to the MFIL/MIL companies.

Personal Income Tax Rates

Resident nationals and foreigners are taxed on their worldwide income under the Myanmar Income Tax Act.

Non-resident foreigners are taxed only on income derived from sources within Myanmar.

Foreigners working for Union of Myanmar Foreign Investment Law (MFIL) or Myanmar Investment Law (MIL) companies may be taxed at the same tax rates as a tax resident, regardless of their period of stay in Myanmar, under the tax incentives that may be granted to the MFIL/MIL companies.

Personal Income Tax Rates

* No tax is payable if total income under salaries does not exceed 4.8 million Myanmar kyats (MMK) a year.

Residence

A person is a tax resident in Myanmar if the individual is 'domiciled in' or has a 'principal place of abode' in Myanmar. Non-resident Myanmar nationals mean those who live and earn income from employment outside Myanmar for any period of the year.

Foreigners who reside in Myanmar for at least 183 days during an income year are considered resident foreigners.

Foreigners who reside in Myanmar for less than 183 days during an income year are considered non-resident foreigners, unless they are working for MFIL/MIL companies, in which case they could be treated as resident foreigners, regardless of their period of stay in Myanmar, under the relevant tax incentive that may be granted to the MFIL/MIL companies.

 

Other Taxes

Social Security Contributions

The Social Security Act 2012 requires an employer with more than five workers to provide Social Security Scheme benefits to one’s workers, such as health and social care insurance as well as insurance against employment-related injuries.

The rates of contribution by employees and employers are 2% and 3% of the total salaries and wages, respectively. The contribution must be in Myanmar kyats regardless of the currency in which the employee is paid.

With effect from 1 April 2014, the maximum monthly contribution is limited to MMK 9,000 by the employer and MMK 6,000 by the employee.

Contributions are deductible by the employee for tax purposes. The employer is obliged to withhold the employees’ contributions from their salaries.

Capital Gains Taxes

Income tax is levied on gains from the sale, exchange, or transfer of capital assets (i.e. any land, building, vehicle, and any capital assets of an enterprise, which include shares, bonds, and similar instruments) and intangibles (to the extent they fall within the definition of capital assets).

Capital gains are calculated based on the difference between sale proceeds and the cost of assets and any additions, less tax depreciation allowed.

Residents and non-residents are taxed at 10% on their capital gains. Different rates apply for capital gains from the sale, exchange, or transfer of capital assets relating to companies engaged in upstream oil and gas activities relating to exploration, drilling, and extraction within Myanmar.

Luxury and Excise Taxes

Excise duty is levied on alcoholic drinks. The duty is collected by the General Administration Department under the Ministry of Home Affairs.

Stamp Duties

Stamp duty is levied on various types of instruments, and some rates are given below:

2% of the amount or value of the consideration for conveyances of properties, for the sale or transfer of immovable property, plus an additional 2% (conveyance of property located in Yangon is subject to additional 2% stamp duty). Prior to 1 October 2016, the stamp duty rate on conveyance was 3%.

0.1% of share value for the transfer of shares. Prior to 1 October 2016, the stamp duty rate on share transfer was 0.3%.

0.5% of the amount or value secured for bonds. Prior to 1 October 2016, the stamp duty rate on bond instrument was 2%.

0.5% of the annual value of rent and 2% of the premium for the immovable properties lease agreements between one and three years, and 2% of the average annual value of rent and premium where the term of the lease agreement is more than three years. Prior to 1 October 2016, the stamp duty rates for the lease agreement with lease term not exceeding three years was 1.5% and the lease agreement with lease term more than three years was 3%.

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