Tax laws Myanmar
Myanmar's tax system comprises various taxes, including personal and corporate income taxes, specific goods tax, commercial tax, and other levies. Below is an overview of the key tax categories:
1. Personal Income Tax:
Residents:
Income Tax: Progressive rates from 1% to 25%.
Capital Gains Tax: 10% on gains.
Rental Income: 10% on gross income.
Non-Residents:
Nationals: 10% income tax.
Foreigners: 25% income tax and 10% capital gains tax.
2. Corporate Income Tax (CIT):
General Rate: 22% for companies incorporated under the Myanmar Companies Law, state-owned enterprises, and businesses with a Myanmar Investment Commission permit.
Public Companies: 17% for those listed on the Yangon Stock Exchange, with additional conditions for tax relief.
citeturn0search3
Specific Goods Tax (SGT):
Rates: Range from 5% to 80%, depending on the product.
Exemptions: Exports are generally exempt, except for wood logs and wood cuttings, which are taxed at 10%.
Additional Tax: A 5% commercial tax is imposed on top of the SGT.
Tax Credits: Manufacturers can offset SGT paid on raw materials against SGT charged on sales.
4. Other Taxes:
Union Taxation Law: The Union Taxation Law of 2023 introduced various tax measures, including income tax rates and reliefs.
5. Tax Compliance and Challenges:
Procedures: Businesses may face multiple procedures and delays in obtaining permits and utilities.
Corruption: There are reports of corruption in business activities, including tax collection.
Note: Tax laws and regulations are subject to change. For the most current information, consult the Myanmar Internal Revenue Department or seek professional tax advice.
RELATED Blog
0 comments