Myanmar: Living There - Tax Issues

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Last Updated: Dec 18, 2008

Living There

INDIVIDUAL TAXATION

Residents are taxed on their worldwide income. Married couples are assessed and taxed separately.

INCOME TAX

Income is categorized as income from salary, a profession, business, property, capital gains, other sources and undisclosed sources. Income from salary and capital gains are assessed separately from other income.

Income tax is levied on total income, after deduction of allowable expenditure and depreciation where applicable.

INCOME TAX
TAXABLE INCOME, MMK (US$)	TAX RATE
Up to 5,000 (US$795)	5%
5,000 – 10,000 (US$1,589)	10%
10,000 – 20,000 (US$3,178)	11%
20,000 – 30,000 (US$4,768)	12%
30,000 – 40,000 (US$6,357)	14%
40,000 – 50,000 (US$7,946)	15%
50,000 – 80,000 (US$12,714)	16%
80,000 – 110,000 (US$17,481)	17%
110,000 – 150,000 (US$23,838)	18%
150,000 – 200,000 (US$31,784)	19%
200,000 – 300,000 (US$47,677)	20%
300,000 – 400,000 (US$63,569)	22%
400,000 – 1,000,000 (US$317,844)	25%
1,000,000 – 2,000,000 (US$635,688)	35%
Over 2,000,000 (US$ 635,688)	40%
Source: Global Property Guide

Residents are entitled to the following deductions:

Tax relief of MMK5,000 (US$795) for the spouse
Child tax relief: MMK1,000 (US$159) for each child up to 5 years old; MMK1,200 (US$191) for each child between 5 and 10 years old; MMK1,600 (US$254) for each child between 10 and 15 years old; and MMK2,000 (US$318) for each child over 15 years old
Basic allowance of 20% of each class of income, but the total basic allowance cannot exceed MMK12,000 (US$1,907) annually
Life insurance policy premiums of the taxpayer or spouse
Donations to any religious or charitable institutions or to any funds by a state organization; up to 25% of total income

RENTAL INCOME
Taxable rental income is computed by deducting income-generating expenses from the gross income. However, when it comes to income from immovable property, no depreciation allowance can be deducted.

CAPITAL GAINS TAX

Capital gains realized from the sale of immovable property are taxed at a flat rate of 10%. Taxable capital gains are computed by deducting acquisition costs and transaction costs from the sales proceeds.

PROPERTY TAX

Property Taxes

Property taxes are levied on the property’s annual value or the property’s anticipated gross rent if it is leased unfurnished.

PROPERTY TAXES
CLASSIFICATION	TAX RATE
General Tax	20% of annual value
Lighting Tax	5% of annual value
Water Tax	12% of annual value
Conservancy Tax	155% of annual value
Source: Global Property Guide

Myanmar - more data and information

Lawyers (attorneys) with property law practices in Myanmar