An overview of the financial charges, in the form of taxes, that could be met in Myanmar (Burma)
Incentives Under The New Myanmar Foreign Investment Law:
+ For the first 5 years of operation, you will not be required to pay income taxes
+ Tax exemption on reinvested profits (those reinvested within one one year)
+ Accelerate depreciation of assets
+ 50% reduction on taxes if your goods are produced for export
+ You can deduct research and development expenses (if research and development take place in Myanmar)
+ No customs duties on materials used for initial construction
+ No taxes on raw materials imported in the first three years
+ No commercial tax on goods produced for exporting
Here you will find a meticulous break down of all of Myanmar's tax rules. We've provided you with a few of the most important details.
Corporate Income Tax:
Companies incorporated in Myanmar under Myanmar Companies Act:
- Trade/business income: 25%
- Rental income from movable or immovable property: 25%
Enterprises operating under Myanmar Foreign Investment Law: 25%
Foreign organizations engaged under special permission in State-sponsored projects, enterprise or any undertaking: 25%
Non-resident foreign organizations such as a branch of a foreign company: 35%
Capital gains tax (except transfer of shares in an oil and gas company where the rates ranging from 40% to 50% will apply on gains):
- Resident companies: 10%
-Non-resident companies: 40%
A resident company is defined and formed under the Myanmar CA 1913 or any other existing law of Myanmar. These companies are taxed on income coming from sources outside of Myanmar. Additionally, companies formed under the Myanmar Foreign Investment Law will also be named resident companies, but they will not be taxed on their foreign income.
A non-resident company is a company that is not formed under the Myanmar CA 1913 or any other existing law of Myanmar. Typicaly, foreign branches are considered non-resident companies. Non-resident companies are taxed on income derived from sources within Myanmar. Income from any capital assets within Myanmar can be taxed.
Partnerships are not taxed based on the individual profit share of the partners. Rather, they are taxed as an entity. Partnership income is not taxed in the hands of partners.
- Taxable period is 1 April to 31 March
- Income earned during the financial year is assessed the following year
Did You Know?
Myanmar has three main seasons, hot season (March to May), rainy season (June to October) and cold season (November to February).