Tax In Myanmar

A Contractor's Guide to Taxes : 

One of the most consistently challenging aspects of contracting in Myanmar is complying with the country’s tax system. As well as paying tax in Myanmar, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. 

How do I calculate my taxable income: 

If you’re working in Myanmar under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Myanmar for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Myanmar, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Myanmar through PAYE is left with the prospect of doing everything themselves.

Do you know much about Myanmar Tax Law? Does Myanmar have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Myanmar can range from 0 to 25 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator: 

If you are a contractor and want a calculation on your tax and net retention in Myanmar, we can supply it to you free of charge. 

Using an Umbrella Company for Income Tax : 

Contractors in Myanmar are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Myanmar umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Myanmar taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Myanmar tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax: 

We work with numerous umbrella companies in Myanmar, many of whom are experts in tax and immigration laws. If you have any questions about tax in Myanmar, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Myanmar work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Myanmar but without the overhead of directly dealing with the Myanmar tax authorities. Get in touch with us today for some reliable advice on tax in Myanmar!

 

When Do You Need to Lodge Your Tax Return?: 
1 April
Tax Filing Deadline : 
30 June
Can you file it online? : 
Yes, http://www.irdmyanmar.gov.mm/Login.aspx
Currency: 
Myanmar Kyat (MMK)
Tax-free Threshold in: 
MMK 2,000,000
Grossed Income: 
0 – 2,000,000
Tax Rate: 
0%
Grossed Income: 
2,000,001 – 5,000,000
Tax Rate: 
5%
Grossed Income: 
5,000,001 – 10,000,000
Tax Rate: 
10%
Grossed Income: 
10,000,001 – 20,000,000
Tax Rate: 
15%
Grossed Income: 
20,000,001 – 30,000,000
Tax Rate: 
20%
Grossed Income: 
30,000,001 and above
Tax Rate: 
25%
How long does it take to set up: 
14 days
How much does it cost: 
MMK 663,000
Is it easy? : 
Starting a Business Rank: 155 (Source: World Bank)
How to File Taxes in: 

Individuals who derive only employment income during the tax year are not required to file a personal income tax return. Employers must file an annual salary statement with the tax authorities by 30 June after the end of the tax year. If an individual has deductions and income from other sources, then the following steps for filing tax returns apply:

Step 1: Register for a Taxpayer ID at your nearest tax office.

Step 2: Register for the e-Filing service by filling out this form.

Step 3: Login to the e-Filing service using your username and password.

Step 4: File your tax return, noting all income from other sources.

Step 5: If you have any tax due, you can choose to pay it by depositing a cheque at your local bank. Alternatively, you can pay the tax via their online payment system. Registration will be required to pay your tax through their system. This involves:

  1. You must have a Myanmar kyat account with a local bank (e.g. KBZ, AYA, CB Bank etc.)
  2. Notify the relevant tax office and complete the ‘Registration Form for online payment’ that will be provided to you.
  3. Send this Registration Form to your local bank.

 

Myanmar Internal Revenue Department: http://www.irdmyanmar.gov.mm/

Notes: 

The above progressive rates apply to the following categories:

  • All Myanmar sourced income and worldwide income of resident nationals and resident foreigners.
  • Myanmar-sourced salary income of non-resident foreigners.

Non-resident foreigners who derive income in Myanmar other than salary income, will be subject to a flat tax rate of 25%.

Non-resident nationals who derive income in Myanmar other than salary income, will be subject to a flat tax rate of 10%.

Does the 183 day rule apply in: 

Yes.

When do you become a tax resident in: 

An individual is a tax resident in Myanmar if:

  • They are ‘domiciled’ or has a ‘principle place of abode in Myanmar.
  • Foreigners who reside in Myanmar for 183 days or more during a tax year (1 April through 31 March) are considered a resident foreigner.
Am I taxed on my global income in: 

Residents and resident foreigners are taxed on their worldwide income including foreign self-employment and business income.

Non-residents are subject to tax on their Myanmar sourced income only.

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