| 1. |
General |
| |
There are 15 types of taxes and
duties under four main heads, they are: |
| |
(1) |
Taxes levied on domestic production
and public consumption excise duty; licence fees on imported
goods; state lottery; taxes on transport, commercial tax and
sale proceeds of stamps. |
| |
(2) |
Taxes levied on income and ownership
- income tax and profit tax. |
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(3) |
Customs duties. |
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(4) |
Taxes levied on utility of State-owned properties
- taxes on land; water tax, embankment tax; taxes on extraction
of forest products, minerals, rubber and fisheries. |
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|
Income of tax payer is computed
on the basis of one fiscal year (April 1 to March 31 of the
following year). The fiscal year in which income is received
is expressed as "income year" and the year following
as "assessment year".
A resident foreigner or a resident citizen
is subject to tax on all income derived from sources within
the Union of Myanmar and on income from sources outside the
Union of Myanmar. In the case of an enterprise operating under
the Union of Myanmar Foreign Investment Law, the tax is payable
only on income derived from sources within the Union of Myanmar.
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A non-resident foreigner is
subject to tax on all income from sources in Myanmar. |
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A resident foreigner is |
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|
| (A) |
a foreigner who lives in Myanmar
for not less than 183 days during the income year, |
| (B) |
a company formed under the Myanmar
Companies Act or any other existing Myanmar Law wholly
or partly with foreign share holders. |
| (C) |
an Association of persons other than a company
formed wholly or partly with foreigners and where control,
management and decision making of its affairs are situated
and exercised wholly in the Union of Myanmar. |
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A foreigner or a foreign organization who is not
a resident in Myanmar is classified as a non resident. A branch
company is treated as a non-resident. However, this classification
is irrelevant to an enterprise operating under the Union of
Myanmar Foreign Investment Law. |
| 2. |
Tax Rates |
| |
A flat tax rate of 30% is
applicable to enterprises operating under the Union of Myanmar
Foreign Investment Law and those formed under the Myanmar
Companies Act.
For a non-resident foreigner (including
a branch company), income tax is payable at 35% or at progressive
rates from 5% to 40% whichever is greater. For the income
from "salaries" other than income of non-resident
foreigners the tax is computed at progressive rates of 3%
to 30%
Notwithstanding the provisions contained in the income tax
law, Myanmar Citizens, who earn foreign currency for the sale
of commodities produced and carrying out of any kind of business,
shall pay 2% of the total foreign currency earning as income-
tax in such foreign currency.
|
| 3. |
Withholding Tax |
| |
Payments on income such as interest,
royalties and on contracts are subject to withholding tax as
shown below.
|
Class of income
|
Rate applicable to resident
citizens and resident foreigners
|
Rate applicable to non-resident
foreigners
|
| Interest |
- |
15% |
| Royalties for use of licences,
trade marks, patent rights etc. |
15%
|
20%
|
| Payments to contractors made by Government
Organizations, Municipalities and Co-operative
Societies. |
3%
|
3.5%
|
| Payments for work done to contractors |
2.5%
|
3%
|
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Our Ministry
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