MODiNS Home Page Myanmar's Information Myanmar's Business Information Tour Information Community Fashion Entartainment
   MODiNS.NET   

COMMUNITY
STREET BROADCAST
e-MESSENGER
MEMBER FORM
CHAT
JOB SEARCH
e-COOK
ONLINE TEST
TOPIC A II Z
DOWNLOAD CENTER
ENTERTAINMENT
e-CARTOON
FILM STARS
e-GALLERY
e-POEM
e-CARD
HUMOROUS STORY
e-MUSIC
dot.HOROSCOPE
e-MAGAZINE

TAXTION
     A person or an enterprise operating under the Foreign Investment Law is liable to income tax or the income accruing or derived from all sources within the Union of Myanmar. At present, there are fifteen types of taxes and duties under the four main categories. Income is computed on the basis of one fiscal year which starts on April 1 and ends on March 31 of the following year. A flat tax rate of 30 percent is applicable to an enterprise operating under the Foreign Investment Law and those operating under the Myanmar Companies Act. A foreign employee of an enterprise operating under the Foreign Investment Law, for income tax purposes, could be treated as a resident citizen. As a consequence, progressive tax rates starting from 3 percent to a maximum ceiling of 30 percent is applicable. Personal Income Tax A person or an enterprise operating under the Foreign Investment Law is liable to income tax on the income accruing or derived from all sources within the Union of Myanmar.
Business Tax (Commercial Tax)
     The Commercial Tax Law was promulgated on 31st March, 1990 and became effective from the financial year 1990/91. This law was amended in March 1991. Commercial tax is a turn-over tax levied on goods and services. The tax is imposed on a wide range of goods and services produced or rendered within the State and the imported goods from abroad. Except for trade, the tax imposed as an ad valorem single tax, that is, at the point of sale of producer or manufacturer for domestically produced or manufactured goods. The tax payable for imported goods is to be collected by the Customs Department in the same manner as the customs duty is collected. Regulations are provided to set off input from output tax, in case of production and services in order to avoid tax cascading. The tax levied according to the Schedules appended to the said Law Schedule I lists tax-free items comprising 65 essential and basic commodities. Schedules II to V carry rates ranging from 5% to 25% depending on the nature of the goods. The tax will be charged on the landed cost of the imported goods and on the sale proceeds of the goods produced within the State. Schedule VI is for specific type of commodities such as cigarette, fuel oil, liquor, pearl, jade and gems on which tax is chargeable at rates ranging from 30% to 200% and Schedule VII is applicable to services including trade. On the proceeds of sale from trading business, no tax shall be payable according to Schedule VII, Serial number 3 in respect of goods imported from abroad. The tax rates for services are 8% on passenger transport fares, 30% on movie shows, 15% on other forms of entertainment, 5% on trading and 10% on hotel, lodging and restaurant services. There are provisions for the exemption of commercial tax whenever such exemption is considered appropriate, particularly as incentives for newly established businesses and exports. Every enterprise engaged in the production of goods and services liable to commercial tax must first be registered with the Township Revenue Office. An application for registration must be filled one month before the commencement of business, furnishing an intimation within 10 days of the commencement of business. The tax is payable monthly on or before the 10th of each month for gross sales or receipts of the proceeding month. Quarterly gross sales or receipts must be filed with the Township Revenue Office within one month of the end of the respective quarter. An annual return must also be filed within three months of the end of the year for the purpose of final assessment.
Value-Added Tax
     There is by law a 10% Value-Added Tax on hotel and restaurant services which must be shared between the staff. In addition, there is also a Value-Added Tax on all goods and services of any sort which goes to the Government.
Rates
     Bodies corporate registered outside Myanmar having registered branches in Myanmar are regarded as non-resident and are taxed on income only arising or accruing in Myanmar at the minimum non-resident rate of 35% or at graduated resident rates of 3% to 50%, whichever is the highest. Branch profits can be assessed at the option of the Internal Revenue Department in any of four ways, and this means in practice, that the Department will choose, whichever they think will raise the greatest revenue. First Method: On branch account profits as revealed by certified branch accounts. Second Method: On a proportion of world profits, with adjustment according to the Myanmar Tax Law. In effect, the world income is divided in the ratio of Myanmar receipts versus the world receipts and the profits taxable are in that proportion. Third Method: On deemed profit, namely a reasonable percentage of gross receipts. Reasonable has been defined as 5% to 10% negotiable. Fourth Method: On any basis, which the Inland Revenue Department considers to be reasonable. Myanmar resident corporations having overseas income are liable to Myanmar tax, without any relief whatsoever for tax paid abroad. There is only one exception which arises because Myanmar has only one overseas tax treatly and, that is, with the UK. For this reason, Myanmar corporations normally think in terms of opening for business their first overseas branch in UK. The Companies Act distinguishes between public and private corporations. A public corporation is defined is one that has at least seven members, has the right to advertise and offers shares to the public and may transfer shares without restriction. A private corporation has between two and 50 shareholders and restricts share transfers. However, the tax laws make no such distinction. The 'Acid Test' of 'control and management in Myanmar or overseas' is applied. Payment of tax is quarterly in advance and must be paid at the end of June, September, December and March. If on final assessment underpayment is revealed, there is a late-payment penalty of 5% to 10% of the shortfall per annum. Tax assessment is based upon the previous year's income. The fiscal tax year runs from 1st April to the following 31st March. Corporations cannot choose their own year ends. If tax returns for the fiscal year are not made before 30th June, i.e. within three months, there will be a further penalty of 5% to 10%.
Tax Rates
     A flat tax rate of 30% is applicable to an enterprise operating under the Foreign Investment Law and those operating under the Myanmar Companies Act. A foreign employee of any enterprise operating under the Foreign Investment Law, for income tax purposes, could be treated as a resident citizen. As a consequence, progressive tax rates starting from 3% to a maximum ceiling of 30% is applicable. This progressive rate also applies to Co-operatives Societies. From the total income, a basic allowance of 20% of total income subject to a limit of Kyat 6,000, wife and children allowances and life insurance premium for the employee and spouse are deductible before the rates are applied. If the wife has no assessable income within the income tax year, the husband can claim an allowance by way of relief of Kyat 2,500.
Business & Economy
Trade and commerce
Social economic conditions of myanmar
Co-operatives
Taxation
Banking and credit card
Exhibitions
More Info:
Modins classified
Public Holidays
Exibitions
Monthly Festivals
Myanmar Links
Religious
Buddhist Childhood
Buddhist Religion
Bagan Pagodas
12 Months' Festivals
Tagu
Kasoun
Nayon
Warso
Warkaung
Tawtalin
Tatingyut
Tazaungmone
Nattaw
Pyathoh
Tabohdwe
Tabaung
References
Book
Colorful of Myanmar
Cooking
Yellow pages
Map
Travel & Tour
Travel tips
Vacations
Hotels' addresses
Pagodas
Palace
Map

Home |  Myanmar Info |  Business Info |  Tour Info |  Community |  Fashion |  Entertainment |  Service

Contact Us  |  Privacy Policy

Myanmar Online Data Information Network Solutions
Copyright 2002 MODiNS.Net Inc. All right reserved.