Resident citizens and non-natives are taxed on their worldwide income under the Myanmar Income Tax Act. Non-resident people are taxed only on income obtained from sources within Myanmar. Non-natives working for Union of Myanmar Foreign Investment Law (MFIL) or Myanmar Investment Law (MIL) companies may be taxed at the same levy rates as a duty occupant, nonetheless of their period of stay in Myanmar, under the levy incentives that may be granted to the MFIL/shop companies.
Commercial tax
Commercial levy, at rates ranging from 0 percent to 8 percent, is levied as a development levy on goods and services. Generally, the commercial levy is assessed at the rate of 5 percent. The commercial levy that a business charges and collects is known as the output levy, which has to be paid to the Myanmar levy authorities. The commercial levy incurred on business purchases and charges is known as the input levy. Businesses that are registered for commercial levy can claim commercial input levy if certain conditions are met. Commercial levy is assessed on a wide range of specified goods and services traded, produced, or rendered within the country, on the grounds of the proceeds of the sale, and on imported goods. There are 43 types of goods exempted from the commercial levy.
Specific goods duty
The Specific Goods Tax Law replaces commercial levies on a list of specific goods that are imported into Myanmar, manufactured in Myanmar, or exported to a foreign country. The list of specific goods includes cigarettes, tobacco leaves, Virginia leaves, cheroots, cigars, pipe tobaccos, betel-biting tobacco, beers, wine, and alcoholic drinks, wood logs and wood slices, vans, bars, cruisers, estate carts, and coupe buses except for double hack 4- door pickups from the range of 1501 cc to 4001 ccs and over, and kerosene, petrol, diesel, as well as natural gas. The specific goods duty rates range from 5 percent to 60 percent. Specific goods duty is exempted on all exports, except for wood logs and wood slices, which are subject to duty at 10. Under the Specific Goods Tax Law, only a manufacturer of special goods can claim and neutralize the levy of the specific goods incurred on the purchase of semi-finished goods against the duty of the specific goods charged on the trade of specific goods.
Gems tax
Under the Union Taxation Law (UTL) 2020, gems (whether rough or abbreviated or jewelry or effects made with rocks) shall be subject to gems levy in agreement with Section 38 of the Myanmar Gemstone Law 2019. The levy rates are ranging from 5% to 11%.
Customs duties
Customs duty is levied under the Customs Tariff of Myanmar (2017) at rates of over 50%. Companies registered under the MIC/SEZ may, at the discretion of the MIC/ SEZ Committee, be granted immunity from customs duties during a certain period.
Property Levies
Immovable property (land and structures) in Myanmar is subject to property duty.
Capital gains levies
Capital earnings duty is levied on earnings from the trade, exchange, or transfer of capital means (i.e. any land, structure, vehicle, and any capital means of an enterprise, which include shares, bonds, and analogous instruments). Capital earnings from the trade, exchange, or transfer of capital mean in the oil painting and gas sector (companies engaged in upstream oil painting and gas conditioning relating to research.
Payroll levies
An employer is responsible for deducting income duty due from salaries at the time of payment to workers and must pay the quantum within 15 days from the date of deduction. However, the employer is said to be a defaulter and held responsible for a similar payment, if the employer fails to deduct and pay the levy. In addition, the employer is also responsible for filing the statement of periodic payment within three months after the end of the income time, and failure to file by the required deadline may lead to a penalty of 10 percent of the quantum of levy to be subtracted from yearly income.
Social security contributions
An employer with five or extra workers is needed to give Social Security Scheme benefits to those workers, similar to health and social care insurance and insurance against employment-related injuries. The rates of donation by workers and employers are 2 percent and 3 percent of the total income and stipend, independently. The donation must be made in Myanmar kyats for all currencies that the income is paid in within 15 days of the following month, using the exchange rate specified by the Myanmar Foreign Trade Bank (MFTB) on the first day of the applicable month.
