Income tax in Myanmar

Taxation Researcher | May 20, 2022

INDIVIDUAL TAXATION

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

 The tax year is from 01 October of the current year to 30 September of the succeeding year. The tax year 2021-2022 is from 01 October 2021 up to 30 September 2022. The tax year 2022-2023 is from 01 October 2022 up to 30 September 2023.

The tax year is from 01 October of the current year to 30September of the succeeding year. The tax year 2019-2020 is from 01 October 2019 up to 30 September 2020. The tax year 2020-2021 is from 01 October 2020 up to 30September 2021.

INCOME TAX

Income is categorized as (1) income from salary, (2) a profession, (3) business, (4) property, (5) capital gains, and (6) other sources and undisclosed sources. Income from salary and capital gains are assessed separately from other income categories.

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

INCOME TAX 2021

TAXABLE INCOME, MMK US$
TAX RATE
Up to 2 million (US$1,322)
0%
2 million – 10 million (US$6,609)
5%
10 million - 30 million (US$19,828)
10%
30 million - 50 million (US$33,047)
15%
50 million - 70 million (US$46,266)
20%
Over 70 million (US$46,266)
25%

INCOME TAX 2018-2020

TAXABLE INCOME, MMK US$
TAX RATE
Up to 2 million (US$1,322)
0%
2 million- 5 million (US$3,305)
5%
5 million - 10 million (US$6,609)
10%
10 million - 20 million (US$13,219)
15%
20 million - 30 million (US$19,828)
20%
Over 30 million (US$19,828)
25%

Employees are granted a relief for 20% of their income, subject to a cap of MMK10 million (US$6,609).

Resident taxpayers are entitled to the following allowances:

  • spouse allowance: MKKK1 million (US$661)
  • parent allowance: MKKK1 million (US$661)
  • children allowance for children below 18 years of age: MMK500,000 (US$331)

RENTAL INCOME TAX
Rental income is subject to income tax at a flat rate of 10% for resident individuals.  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.

Stamp Duty on Rental Income

Stamp duty is levied on rental income, and the applicable rate depends on the rental period.

STAMP DUTY ON RENTAL INCOME

RENTAL PERIOD
RATE
Up 3 years    
0.50% of the rent
1 year – 3 years
2% of the rent

CAPITAL GAINS TAX

Capital gains realized earned by residents 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. The property´s annual value is determined by the local authorities where the property is located.

PROPERTY TAX

CLASSIFICATION
TAX RATE
General Tax 20% of annual value
Lighting Tax 5% of annual value
Water Tax 12% of annual value
Conservancy Tax 15% of annual value

CORPORATE TAX

INCOME TAX

Income earned by resident companies is generally subject to corporate income tax at a flat rate of 22%. Income-generating expenses are deductible when calculating taxable income.

The corporate income tax rate was 25% in 2021.

CAPITAL GAINS TAX

Capital gains earned by companies are generally subject to corporate income tax at a flat rate of 22%. Taxable capital gains are calculated by deducting the following from the sales proceeds: acquisition costs and additional expenses, and any allowable tax deduction.

The corporate income tax rate was 25% in 2021.