Currency for Tax Payment Under the 2024 Union Tax Law

The 2024 Union Tax Law (the “2024 UTL”) was enacted on 29 March 2024 by the State Administration Council. It applies to financial year (“FY”) 2024-2025 (i.e. 1 April 2024 to 31 March 2025) and entered into effect on 1 April 2024.

One of the changes under the 2024 UTL is that all taxpayers are required to fulfill their income tax obligations in the currency in which they earned their income. This requirement applies to payments for various types of income tax, including corporate income tax, capital gains tax, withholding tax, and personal income tax.

Formerly, resident taxpayers, both citizens and resident foreigners, had to pay taxes in Myanmar Kyat, complying with specific conversion procedures outlined in the income tax regulations, whereas non-residents who earned income in foreign currency had to pay taxes in that currency.

Now, under the 2024 UTL, there is no distinction between residents and non-residents for tax payment currency —all income tax must be paid based on the currency in which the income was earned or received.

On 8 April 2024, the Medium Taxpayers’ Office issued a written notification to taxpayers regarding the implementation of this change. It reiterates that all taxpayers, regardless of their residency status in Myanmar—whether foreign resident, non-resident, or citizen—must pay income tax in the currency earned, including salaries in foreign currency, income from the sale of capital assets in foreign currency, and business income received in foreign currency, in accordance with the procedures outlined in the Myanmar tax laws and regulations.

We are aware that tax offices are starting to monitor taxpayers to ensure personal income tax payments are made in foreign currency, so it’s important to ensure you are in compliance with this new rule. Regarding with advance corporate income tax payment, it is expected that further instructions can be issued by the tax offices. 

Taxpayers that have foreign currency accounts at Myanmar Foreign Trade Bank or Myanma Investment and Commercial Bank can make tax payments via a payment order cheque. For taxpayers that have foreign currency accounts in local AD banks or if tax payments are remitted via branches of foreign banks in Myanmar, payments can be made via telegraphic transfer to Myanma Economic Bank using SWIFT Code “MYEBMMMY”.

If you have any questions on the above or need assistance with this matter, please contact the undersigned or your usual VDB Loi adviser.