Every company in Myanmar must register itself with the Internal Revenue Department (IRD) within 90 days after registration at the Directorate of Investment and Company Administration (DICA). The tax registration can be done online on the IRD's website.

The financial year in Myanmar starts on 1 April and ends on 31 March.

Below is an overview of three major taxes applicable to business entities in Myanmar:

• Personal Income Tax;
• Corporate Income Tax; and
• Commercial Tax.

Personal Income Tax

The following table outlines the annual Personal Income Tax rates for Myanmar and foreign individuals:

*Using the official exchange rate of USD 1 = MMK 2,100.

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Further, an individual who receives income from rent is subject to 10% Personal Income Tax.

Employers are required to calculate and withhold Personal Income Tax from salary, and pay tax within 15 days after paying salary. An annual salary return needs to be submitted to the IRD by employers by 30 June of each year.

Corporate Income Tax

Companies in Myanmar are generally subject to a 22% Commercial Income Tax rate. For companies listed on the Yangon Stock Exchange, the Commercial Income Tax rate is 17%. Oil and gas exploration and production companies are subject to a 25% Commercial Income Tax rate.

Generally, expenditures incurred for the purpose of earning business income are deductible.

Corporate Income Tax needs to be paid quarterly in advance, 10 days after the end of the quarter. Annual Corporate Income Tax return needs to be filed with the IRD by 30 June of each year.

Commercial Tax

Commercial Tax, similar to Value-Added Tax in other countries, is imposed on goods produced and sold locally, services rendered in Myanmar, and goods imported to Myanmar. The below table outlines applicable Commercial Tax rates:

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Similarly to Value-Added Tax, input Commercial Tax can be offset against output Commercial Tax. Taxpayers whose revenue does not exceed MMK 50 million during a 12-month period are exempt from paying Commercial Tax.

Commercial Tax needs to be paid by the 10th day of the following month. Quarterly Commercial Tax returns need to be submitted within one month after the end of the quarter. In addition, annual Commercial Tax returns need to be filed with the IRD by 30 June of each year.

How we can help you

Our legal team can assist with:

• Advising on tax laws and regulations, and double taxation agreements;
• Tax and investment structuring;
• Preparation of corporate income tax, commercial tax and personal income tax returns;
• Preparation and submission of annual financial report to the Internal Revenue Department;
• Taxation due diligence; and
• Advising on customs duties and import/export procedures.