Nonresident individuals are taxed on their income from sources in Myanmar. Married couples are assessed and taxed separately.
Foreigners are not allowed to own immovable property in Myanmar.
Income tax earned by nonresident foreigners is generally taxed at a flat rate of 35%. However, progressive income tax rates may apply, if these rates will yield a higher income tax liability.
INCOME TAX - BUSINESS AND PROFESSIONAL INCOME
|TAXABLE INCOME, MMK US$|
|Up to 500,000 (US$518)|
|500,000 – 1,000,000 (US$1,036)|
|1,000,000 – 2,000,000 (US$2,073)|
|1,500,000 – 3,000,000 (US$3,109)|
|2,000,000 – 4,000,000 (US$4,145)|
|3,000,000 – 6,000,000 (US$6,218)|
|4,000,000 – 8,000,000 (US$8,290)|
|6,000,000 – 10,000,000 (US$10,363)|
|8,000,000 – 15,000,000 (US$15,544)|
|10,000,000 – 15,000,000 (US$15,544)|
|20,000,000 – 20,000,000 (US$20,725)|
|Over 30,000,000 (US$20,725)|
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 realized by nonresident foreigners from the sale of immovable property are taxed at a flat rate of 40%. Taxable capital gains are computed by deducting acquisition costs and transaction costs from the sales proceeds.
Property taxes are levied on the property’s annual value or the property’s anticipated gross rent if it is leased unfurnished. The property’s annual value is determined by the local authorities where the property is located.
|General Tax||20% of annual value|
|Lighting Tax||5% of annual value|
|Water Tax||12% of annual value|
|Conservancy Tax||15% of annual value|
Income earned by nonresident companies is generally subject to corporate income tax at a flat rate of 35%. Income-generating expenses are deductible when calculating taxable income.
Capital gains earned by nonresident companies are generally subject to corporate income tax at a flat rate of 40%. Taxable capital gains are calculated by deducting the following from the sales proceeds: acquisition costs and additional expenses, and any allowable tax deduction.
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