Verified Facts
The tax rates in Myanmar range from 5% to 25% for personal income tax, with a corporate tax rate of 25%, and a value-added tax (VAT) rate of 5%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Myanmar has a territorial tax system, where taxes are levied on income earned within the country, regardless of the tax residence of the individual or entity. However, residents are also subject to tax on their worldwide income, with a credit given for foreign taxes paid. To be considered a tax resident in Myanmar, an individual must be present in the country for at least 183 days in a tax year, or have a permanent home in Myanmar and be present in the country for at least 30 days in a tax year.
The tax system in Myanmar is governed by the Income Tax Law and the Union Taxation Law, which provide the framework for the taxation of individuals and businesses. The tax authority in Myanmar is the Internal Revenue Department, which is responsible for the administration and collection of taxes. Taxpayers in Myanmar are required to register with the Internal Revenue Department and obtain a Taxpayer Identification Number (TIN) in order to file tax returns and pay taxes.
Personal Income Tax
| Income Bracket (MMK) | Tax Rate |
|---|---|
| 0 - 500,000 | 5% |
| 500,001 - 2,000,000 | 10% |
| 2,000,001 - 5,000,000 | 15% |
| 5,000,001 - 10,000,000 | 20% |
| Above 10,000,000 | 25% |
| Taxpayers in Myanmar are entitled to various deductions and allowances, including a personal allowance of MMK 500,000, and deductions for charitable donations and mortgage interest. Tax returns must be filed by the end of June following the end of the tax year, and tax payments can be made in installments throughout the year. |
Corporate & Business Tax
- The corporate tax rate in Myanmar is 25%, which applies to both resident and non-resident companies.
- Small businesses with an annual turnover of less than MMK 50 million are eligible for a reduced tax rate of 10%.
- Companies operating in designated Free Zones are eligible for tax exemptions and other incentives.
- All businesses in Myanmar are required to register with the Companies Registration Office and obtain a business license from the relevant authorities.
- Companies are also required to file annual tax returns and pay taxes on their profits, which are calculated based on their accounting profits.
VAT / Sales Tax
- The standard rate of Value-Added Tax (VAT) in Myanmar is 5%, which applies to most goods and services.
- A reduced rate of 0% applies to certain essential goods, such as rice and edible oil.
- Exemptions from VAT are available for certain goods and services, including healthcare and education services.
- Tourists are eligible for a refund of VAT paid on certain goods, such as souvenirs and handicrafts, under the Tourist Refund Scheme.
For Expats & Foreign Workers
- Expatriates who are tax residents in Myanmar are subject to tax on their worldwide income, including income earned outside of Myanmar.
- Double taxation treaties are in place with several countries, including Singapore and the United Kingdom, to avoid double taxation of income.
- Expatriates are required to register with the tax authorities and obtain a TIN in order to file tax returns and pay taxes.
- Social security contributions are mandatory for expatriates who are employed in Myanmar, and are used to fund social security benefits.
- Remittances of income earned in Myanmar are subject to tax withholding, and expatriates are required to declare their worldwide income on their tax returns.
- Expatriates who are non-resident in Myanmar are subject to tax on their Myanmar-sourced income only, and are eligible for a reduced tax rate of 10% on their employment income.
Crypto & Investment Income
- Investment income, including dividends and interest, is subject to tax in Myanmar, at a rate of 10%.
- Cryptocurrency transactions are subject to tax, and taxpayers are required to declare their cryptocurrency income on their tax returns.
- Capital gains tax applies to the disposal of assets, including shares and real estate, at a rate of 10%.
- Taxpayers are required to keep records of their investment income and cryptocurrency transactions, and to file tax returns declaring their income from these sources.