Income tax in Myanmar

Taxation Researcher | March 11, 2019

INDIVIDUAL TAXATION

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

The tax year is from 01 July of the current year to 31 March of the succeeding year. The tax year 2019-2020 is from 01 April 2019 up to 31 March 2020. The tax year 2020-2021 is from 01 April 2020 up to 31 March 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 2018

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
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 25%. Income-generating expenses are deductible when calculating taxable income.

CAPITAL GAINS TAX

Capital gains earned by nonresident companies are generally subject to corporate income tax at a flat rate of 25%. Taxable capital gains are calculated by deducting the following from the sales proceeds: acquisition costs and additional expenses, and any allowable tax deduction.

Comments

hermes | January 26, 2012

In Yangon, I interviewed two British English teachers over drinks in August 2011. They told me that it was extremely difficult to find rentals, and they had to pay three years in advance! Foreigners generally live in hotels.

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