Myanmar tax law 2016 pdf

Sources at the ird said they will issue further notifications, if required, to add to the myanmar tax law, while the union tax law, which governs commercial and income tax rates, will be updated based on. Individuals earning up to mmk4,800,000 are now exempt from tax previously mmk2,000,000 individuals earning up to mmk4,800,000 are now exempt from tax previously mmk2,000,000. The amended income tax law the amended law has been approved by the. The relevant ministry shall collect the earmarked taxes at the tax rates contained in this law for the types of the taxes. Small enterprises not covered by the income tax law are subject to pay under the. Tax reforms in myanmar myanmar 2016 oxford business group. The sgt, designed to modify the commercial tax ct law, announces a range of changes, but the most marked change taxes affect alcohol, wine and cigarettes.

Chapter 1 title, date of coming into force and definitions. This law shall extend to the whole of the republic of the union of myanmar and shall also apply to all the citizens of the republic of the union of myanmar residing outside the republic of the union of myanmar. Charltons advises on the legal aspects of investing in myanmar, including, but not limited to investments under the myanmar investment law 2016, the myanmar companies law 2017 and the special economic zone law 2014. Myanmar tax law the myanmar income tax law, 1974 the commercial tax law,1990 the union of myanmar foreign investment law 2012 and latest notifications issued by ministry of finance and revenue dated june 2012 applicable laws to individuals, companies and jointventures. Union taxation law 2018 and its implications for business the myanmar government enacted the union taxation law 2018 and it came into force on 1 april 2018. Myanmar employment law is governed by both old and new laws and regulations, as well as internal policies and practices.

Calculate tax of myanmar properties depending on buying, selling and renting at. Pyi taw council, union ministries,central bank of myanmar, region or state. Under myanmar income tax law, dividends received are not subject to income tax. Myanmar is reported to have passed the union tax law 2016, which took effect on 1 april 2016. No commercial tax shall be levied on the sale of the following goods. Tax updates pwc myanmar l tax services the amended income tax law the amended law has been approved by the parliament on 31 august 2016 and was published in the local newspaper on 1 september 2016. Therefore, dealers were observing the automobile market in the first three months of the calendar year. Tax reforms in myanmar international monetary fund. New businesses enjoy a tax holiday if their income does not exceed 5 million ks. Unofficial translation october 10, 2016 chapter 1 title and definition 1. Very simply put, commercial tax is levied on a companys revenue, whereas income tax is levied on what is left from the revenue.

According to the union tax law utl of 2018, anyone whose annual salary income is mmk4. A few tax relief measures were incorporated in the draft of the 2018 union tax law. The taxable capital gain is calculated based on the difference between the sales proceeds and the cost of the asset, less the accumulated tax depreciation allowed under the myanmar income tax law. The tax is imposed on anyone engaged in manufacturing, distribution, importation of goods, trading or the provision of services. This law shall be called the special goods tax law.

The years 2012 and especially 2014 witnessed several constructive changes through amendments to the income tax law itl, the commercial tax law ctl, the stamp duty act and the court fee stamp act. Kpmg in myanmar is committed to provide the very highest level of service to companies doing business in myanmar. The union tax law 2017 utl 2017 will commence operation on 1 april 2017. Capital gains tax is levied on gains from the sale, exchange or transfer of capital assets.

Union tax law 2018 2018, pyidaungsu hluttaw law no. The commercial tax law in myanmar is a revenueraising measure similar, but not identical, to the wellknown valueadded tax vat. Under the new union tax law, 2017, the total number of goods exempted from commercial tax was increased from 86 union. Myanmar investment law the pyidaungsu hluttaw law no. The law is effective from the financial year 20162017 i. On march 24, 2014, the union government enacted two new tax laws with immediate effect. In this newsletter, we have outlined the significant changes that may impact most of the investors doing business in myanmar.

Chapter 1 title, date of coming into force and definitions 1. In 2016, the myanmar parliament passed the union tax law 2016 ahead of the usual schedule it had established over the last 2 years. Myanmar has reintroduced excise tax system called the special goods tax law sgt. The union tax laws 201420152016 provisions related to tax policy such as tax rates. The recent reforms of the internal revenue department ird in myanmar and the enactment of the tax administration law tal are major steps towards modernizing the tax system in myanmar. National league for democracy 2016 myanmar laws 2016. The union tax laws 201420152016 provisions related to tax policy such. Myanmar highlights 2019 rate a 25% tax rate applies to companies incorporated under the myanmar companies law and foreign organizations that have obtained special permission to be engaged in statesponsored projects or undertakings.

These were aimed at meeting the tax reform agenda that was set by the parliamentary government installed in 2011, in order to eradicate the provisions of laws detrimental to the progress of the. This law shall be called the myanmar investment law. Union taxation law 2018 and its implications for business new. More tax laws planned the internal revenue department ird currently sets polices under the myanmar tax law and the union tax law.

Convenience translation accuracy not guaranteed myanmar. Types of taxable income tax rate payment for resident or resident foreigner payment for nonresident interest 15% 20% patent royalties 15% 20% on contracts 3% 3. This is very much welcomed as tax payers would have some time to understand some of the proposed changes prior to their effective date at the start of the next fiscal year on 1 april 2016. Visit this page for an executive summary of myanmars tax structure and rates, by salestaxhandbook.

Income tax law 1974 as amended by union tax law 2017 law relating to overseas employment 1999. On 28 march 2014 the myanmar government introduced a number of important changes to myanmars tax regime. Myanmar continues to push tax reforms with the passage of five new tax laws. This alert summarizes the changes which will impact businesses in myanmar. Income tax is levied on gains from the sale, exchange or transfer of capital assets e.

Global edition is a free, personalized email subscription service that allows you to receive ey global tax alerts, newsletters, events, and thought leadership published across all areas of tax. The economic policy of the union of myanmar is peoplecentered, and aims to achieve inclusive and continuous. Disclaimer this brief presentation on myanmar tax and structuring investments into myanmar is intended to provide an introduction to some of the key issues and. Burmamyanmar laws, decrees and regulations pyidaungsu. The rights for myanmar to impose capital gains tax on nonresident investors are limited in several of myanmars income tax treaties.

Myanmar investment law burmese version18102016 approved 1. Myanmar legislation, tax and accounting systems 12 july 20 wirat sirikajornkij. Home law library laws and regulations laws myanmar laws 1988until now national league for democracy 2016 myanmar laws 2019 pyidaungsu hluttaw law no. The provisions of this law shall come into force in the whole country from the 20162017 financial year. The following expressions contained in this law shall have the. This is very much welcomed as tax payers would have some time to understand some of the proposed changes prior to their effective date at the start of the next fiscal year on 1. Myanmar has a national commercial tax ct of 5% as of 2020, administered by the companies circle tax office. Ministry means republic of the union of myanmar government, ministry. Capital gains there is no separate capital gains tax law. Rates are lower for the sale of buildings 3% and gold jewelry 1%. The union of myanmar tax law 2014 2014 tax law, effective from 1 april 2014, introduced a number of changes to income tax and commercial tax rates in myanmar. Myanmar laws 1988until now state law and order restoration council laws 19881997 state peace and development council laws 19972011 union solidarity and development party laws 2012 2016 myanmar laws 2012. Selected judgements of lower burma 18721892 printed judgements of.

The state law and order restoration council the commercial tax law the state law and order restoration council law no. Union solidarity and development party laws 20122016 myanmar laws 2012. Myanmar operates a onetier corporate tax system, under which dividends received from a company or other association of persons are exempt from income tax in the hands of shareholders. Corporate tax rates in myanmar burma companies formed under myanmar law are taxed at a rate of 25%. On 28 march 2014, the union of myanmar revenue law of 2014 and four other tax bills were signed into law and effective from 1. Myanmar investment law draft 2016, pyidaungsuhluttaw law no. For more information please write to info at for a consultation. However, no capital gains tax will be levied if the total value of such capital assets within a year does not exceed 10 million mmk. With the tax policy remaining unchanged, car trade has picked up a bit in the last two weeks, according to the automobile market. Commercial tax law the second of these revenue laws is the law amending the commercial tax law. Union taxation law 2017 has been enacted introducing changes to the special goods tax, commercial tax and income tax regime that are effective from 1 april 2017. The myanmar stamp act1899 the court fees act1870 4. Amending law of income tax lawmyanmar engineering council lawcomputer science development lawamending law of myanmar stamp actprofit tax law.