Imposition of 2% Withholding Tax on Service Fees Received by the Private Healthcare Professionals
September 14, 2023With effect from 1 September 2023, the Ministry of Planning and Finance has introduced a new Withholding Tax applicable category by Notification 63/2023 (“Notification 63/2023”) on 29 August 2023, which imposes 2% Withholding Tax (“WHT”) on the fees received by the private healthcare professionals from their profession by means of providing private healthcare services in private hospitals, clinics, diagnostic centers, nursing homes, maternity homes and other institutions that provide the private healthcare services (collectively referred to as “Private Healthcare Institutions”).
Under Notification 63/2023, the private healthcare institutions are obliged to deduct 2% WHT from the fees paid to the independent private healthcare professionals who are engaged to provide the healthcare services (i.e., service fees), and pay the WHT so deducted to the specified bank account of the Medium Taxpayer Office or Large Taxpayer Office within 15 days after the deduction of the WHT from the payments. In addition, the independent private healthcare professionals are also required to file the annual income tax return with the relevant tax offices within the specified period. In conducting a tax assessment by the relevant tax office at the end of each income year, the WHT paid will be offset against the total income tax payable.
However, 2% WHT is not applicable to the salary payment made to the private healthcare professionals who are employed as permanent staff of the private healthcare institutions. Salaries are subject to the personal income tax in the progressive range of 0% to 25% depending on the salary amount.
The following updated WHT rates will be applicable in Myanmar.
| Type of Income | Residents | Non-Residents |
| Interests | 0% | 15% |
| Royalties | 10% | 15% |
| Goods (Locally purchased goods) –payments made by government organizations, ministries and state-owned enterprises | 2% | 2.5% |
| Goods (Locally purchased goods) – payments made by others apart from government organizations, ministries and state-owned enterprises | 0% | 2.5% |
| Services (Locally rendered services) – payments made by government organizations, ministries and state-owned enterprises, and payments made to independent private healthcare professionals | 2% | 2.5% |
| Services (Locally rendered services) – payments made by others apart from government organizations, ministries and state-owned enterprises | 0% | 2.5% |