|
|
Our Ministry |
|
Myanmar Statistics |
|
Economic Development |
|
Business Opportunity |
|
National Archives |
|
Privatization |
|
International Relations |
|
Equipment Control |
 |
|
|
| 4. |
Carry Forward of Loss |
| |
A loss not being loss in respect
of capital assets or the share of loss from a source of income
can be set off against profits from the remaining sources of
income in the same year. Unabsorbed loss can be carried forward
and set off against profits in the following three consecutive
years.
|
| 5. |
Customs Duties |
| |
With a few exceptions, all imported
goods are liable to customs duties.
|
| 6. |
Commercial Tax
|
| |
Commercial
Tax is turnover tax levied on goods either domestically produced
or imported. It is also levied on services such as transport
of passengers, entertainment, trading, operation of hotels,
lodging and enterprises engaged in sale of foods and drinks.
For goods and services supplied in Myanmar,
commercial tax is imposed at the time of supply. For the import
of goods, commercial tax is collected by the Customs Department
at the point of importation in the same manner that customs
duties are collected.
Commercial tax is levied according to the Schedules
appended to the said Law. Briefly, the schedules are as follows:-
|
| |
| (1) |
Schedule 1 details tax free
items which comprises 72 essential and basic commodities;
|
| (2) |
Schedule II to V specify tax
rates ranging from 5 per cent to 25 per cent depending
on the nature of the goods produced within Myanmar; |
| (3) |
Schedule VI is for specific
types of commodities such as cigarettes, fuel oil, liquor,
jade and gems on which tax is chargeable at rates ranging
from 30 per cent to 200 per cent;
|
| (4) |
Schedule
7 is applicable to services including Trading Business.
Notwithstanding the provisions contained is annexed
Schedule(1) to Schedule(6) and in serial number 3 of
Schedule(7) of the Commercial Tax Law, if foreign currency
is included in the proceeds of sale or total proceeds
of sale received by any person from any production and
sale of goods in respect of the kinds of goods contained
in Schedule (1) to Schedule (6) or from any commercial
transaction of purchase and sale of goods contained
in Serial number 3 of Schedule (7) the commercial tax
equivalent to 8 per cent of the amount of foreign currency
included shall be paid in such foreign currency.
|
| The commercial tax rates for
services are as follows: |
- |
5 per cent on trading; |
- |
8 per cent on passenger transport
fares; |
- |
10 per cent on hotel, lodging
and restaurant services |
- |
15 per cent on other forms of
public entertainment; and |
|
30 per cent on movie or cinema shows; |
- |
5 per cent on tourism; |
- |
10 per cent on cleaning and oiling
of motor vehicles; |
- |
5 per cent on insurance business
except life insurance business; |
- |
5 per cent on beautifying business
including hairdressing and physical exercise business;
and |
- |
5 per cent on printing business,
Computer typing, Computer design (not included photo |
|
copying business)
|
|
| Conclusion |
Myanmar,
rich in natural resources, human resources and cultural and
national heritage, offers a range of opportunities to potential
investors. Myanmar also practises the legal system based on
Common Law legal system. That she really needs to reap the
best benefit out of such endowments are influx of capital,
appropriate technology, managerial skills and access to international
markets. It is believed that foreign direct investment can
play a vital role in the development process.
Myanmar, bearing the said fact in mind,
has laid down four economic objectives one of those being
"development of the economy inviting participation in
terms of technical know-how and investments from sources inside
the country and abroad". In order to facilitate this
objective in particular, Myanmar provides a spectrum of incentives
in the form of taxes and duties.
Myanmar believes in doing business in the
light of mutually beneficial economic cooperation for the
long term. The potential foreign investors can carry on business
conveniently by utilizing these advantages and facilities. |
| Top |
 Previous Back 
|
|
