The Internal Revenue Department (“IRD”) has recently made an announcement on a transformational change in the taxpayer registration process. In order to facilitate the taxpayer registration with the IRD efficiently and effectively, the process has been changed from “Manual Submission to the IRD” to “Electronic Registration Management System (“ERMS”)”. The taxpayers can now obtain Taxpayer’s […]

As a regulatory measure, the Ministry of Planning and Finance (the “MOPF”) issued a new Standard Operating Procedure (“SOP”) on 1 May 2023 regarding offshore remittances and required tax documentation. According to the SOP, the entrepreneurs, companies, organizations, and individuals are now required to provide certain tax documentation, such as tax payment receipts or tax […]

Myanmar has double taxation agreements (“DTAs”) in force with eight countries: the United Kingdom, Singapore, Malaysia, Thailand, Vietnam, India, the Republic of Korea, and Laos, with a number of other DTAs in the draft stage, including Indonesia and Bangladesh. Accordingly, the tax imposts may be reduced by any DTAs that are currently in effect. The […]

Tax refunds for Commercial Tax (“CT”), Corporate Income Tax (“CIT”), and Specific Goods Tax (“SGT”) can arise if the total tax paid during the year exceeds the actual tax due for the year. Taxpayers can request a refund from the Internal Revenue Department (“IRD”) within a year from the date the notification of the tax […]

The Internal Revenue Department (“IRD”) has launched an e-filing management system aimed at increasing the convenience of quarterly and annual return filings. As taxpayers will no longer be required to go to their relevant tax offices to lodge the returns in person, this will lead to reduced costs and time spent on filing the returns.  […]

The Internal Revenue Department issued Public Ruling 1/2021 (“PR 1/2021”) on 17 June 2021, clarifying the definition of the right to use with regard to licenses, trademarks, and patent rights that fall under the payment category of royalties. The term “right to use” means: Using or the right to use any patent rights of literature, […]

The Internal Revenue Department (“IRD”) has been implementing an online tax payment system since 2018; all taxpayers can process online tax payments using a Tax Identification Number (“TIN”), which is the same as a Company Registration Number with nine digits. There are three advance tax payment options accepted by the IRD – (i) tax payments […]

The Withholding Tax (“WHT”) regime is a mechanism to tax a non-resident for income derived from Myanmar. In the past, the definition of income derived from Myanmar included services performed both outside and inside Myanmar for Myanmar projects. Under Notification 47/2018, the Internal Revenue Department (“IRD”) has subsequently narrowed the interpretation to capture only services […]

With limited time left to settle outstanding tax payments for FY2019-2020 in order to avoid being exposed to penalties, taxpayers need to make sure their tax position is adjusted in accordance with the updated tax laws and regulations. Below is a checklist of key notes for preparing the FY2019-2020 year-end tax position. Have you considered […]

If an individual or a company is buying a capital asset or making an investment, the source of income is required to be provided as proof for the funds used for the purchase or the investment. If the source of income cannot be proved for the portion of the funds used in such purchase or […]

Stamp Duty (“SD”) is applicable on all chargeable instruments unless explicitly exempted under Schedule 1 of the Myanmar Stamp Act 1899 (“MSA”). Chargeable instruments mean documents that create, transfer, extinguish, or record rights or obligations and upon which governmental charges are collected in order to give legal effect thereto. Some commonly used chargeable instruments include […]

Please note that a Statement by the Internal Revenue Department, Yangon Region (“IRD”) has been issued regarding enforcing monthly Personal Income Tax (“PIT”) return filings and payments. This statement by the IRD states that as per the newly enforced Tax Administration Law (“TAL”) Section 40 (a) and Section 49(a), if the party responsible for deducting […]

The 2018–19 financial year end is around the corner and all taxpayers have less than two months left for tax payments, tax returns, and possibly some tax planning. All taxpayers should now be in the process of planning their annual tax filings. Please be reminded that annual Corporate Income Tax (“CIT”), Commercial Tax (“CT”), and […]

The Internal Revenue Department (“IRD”) has issued clarifications regarding Commercial Tax (“CT”) payment and offset timings. Clarification 2/2018 provides an explanation regarding CT payment timelines. CT charged to customers (“output CT”) is due the earlier of issuing invoice to customers or receiving payments. For example, if an invoice is issued to a customer in June […]

The slogan of the Dutch tax authorities is “We can’t make it more fun, but we can certainly make it easier”. A fair, easy, predictable and efficient tax system is an important factor in attracting foreign investment. Highlights Speed up the signing of double taxation agreements Prioritize implementing advance tax rulings for investors so that […]

In December 2017, the Internal Revenue Department (“IRD”) abolished the 2% Advance Income Tax (“AIT”) on goods exported via the Border Trade System for companies under self-assessment due to an increase in the tax compliance level of self-assessed taxpayers. Currently, only the Large Taxpayers’ Office (“LTO”) and Medium Taxpayers’ Office (1) (“MTO”) are under self-assessment; […]

Although many taxpayers think that the withholding tax (“WHT”) regime in Myanmar has only been in place since 2010, it has actually been on the books since the enactment of Income Tax Law in 1974. With the issuance of Notification 41/2010, a formal WHT regime began to be implemented in Myanmar. The WHT regime is […]

Just letting you know that a new Draft Union Tax Law in Myanmar has been released proposing an 8% Special Goods Tax (SGT) on import, sale and export of LNG. SGT was introduced in 2016 with the enactment of Special Goods Tax Law effective starting from 1 April 2016 (FY2016-2017). SGT rates will be announced […]

The Law provides that fringe benefits provided to employees working in Myanmar will be subject to Personal Income Tax (“PIT”). According to section 9 of the Income Tax Law (“ITL”) “any person who receives or has accrued salary, wages, annuity, bonuses, awards and fees or commissions received in lieu of or in addition to the […]