MYANMARTAX BOOKLET
2021 - 2022
2022 - 2023

Get to the point.

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Published by VDB Loi Co., Ltd November 2022
Version 1.0
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Contents
Abbreviations......................................................................................................... 1
Change of financial year in Myanmar................................................................ 2
Corporate Income Tax........................................................................................... 3
Rates of tax .......................................................................................................................3
Deductibility ....................................................................................................................3
Depreciation ....................................................................................................................3
Loss carry forward ..........................................................................................................4
2% Advanced Income Tax on importation and exportation................................4
Withholding Tax..................................................................................................... 5
Overview............................................................................................................................5
Exemption of WHT..........................................................................................................6
Minimum threshold........................................................................................................6
Double Taxation Agreement ........................................................................................6
Overview............................................................................................................................7
Income threshold for paying CGT ...............................................................................7
Rates of tax .......................................................................................................................7
Calculation of CGT..........................................................................................................7
Personal Income Tax............................................................................................. 8
Overview ...........................................................................................................................8
Residency...........................................................................................................................8
Taxable salary...................................................................................................................8
Tax reliefs and allowances for Myanmar residents.................................................8
Rates of tax........................................................................................................................9
Social Security Contributions.......................................................................................9
Rental income................................................................................................................10
Undisclosed source of income..........................................................................11
Double Taxation Agreement ...........................................................................12
Commercial Tax....................................................................................................13
Overview..........................................................................................................................13
Taxable and Non-taxable goods & services............................................................13
Revenue threshold for charging and paying CT ...................................................13
Registration ....................................................................................................................14
Rates of tax......................................................................................................................14
Basis of taxation............................................................................................................14
Offsetting input and output CT .................................................................................14
Specific Goods Tax...............................................................................................16
Overview..........................................................................................................................16
SGT exemptions.............................................................................................................16

Revenue threshold for charging and paying SGT..................................................16
Registration.....................................................................................................................16
Rates of tax......................................................................................................................16
Basis of taxation............................................................................................................16
Offsetting input and output SGT...............................................................................17
Jewelry Tax............................................................................................................18
Overview .........................................................................................................................18
Tax Compliance Requirements ........................................................................19
Compliance timelines and penalties .......................................................................19
Other Taxes...........................................................................................................21
Stamp Duty.....................................................................................................................21
Property Tax....................................................................................................................21
Customs Duty.................................................................................................................21
Investment Incentives........................................................................................22
Myanmar Investment Commission incentives.......................................................22
Special Economic Zone incentives............................................................................23
Investment and Free Trade Agreements .................................................................24
Annex 1: Tax Depreciation Schedule...............................................................25
Annex 2: Commercial Tax-exempted Goods..................................................32
Annex 3: Commercial Tax-exempted Services...............................................37
Annex 4: Specific Goods Tax rates for local production andimportation..........................................................................................................40
Annex 5: Specific Goods Tax rates for export.................................................44
Annex 6: Selected Stamp Duty Schedules......................................................45
Agreements and Counterparts...................................................................................45
Bond.................................................................................................................................47
Conveyance, lease, mortgage and re-conveyance...............................................48
Promissory Note.............................................................................................................53
Transfer............................................................................................................................53
Classification of zones under Myanmar Investment Law............................57

Abbreviations
Term
ACIA
BIT
CGT
CIF
CIT
CT
DTA
FTA
IRD
ITL
MIC
MOPFI
PIT
PT
SD
SEZ
SGT
UTL
WHT

Definition
ASEAN Comprehensive Investment Agreement
Bilateral Investment Treaties
Capital Gains Tax
Cost, insurance and freight
Corporate Income Tax
Commercial Tax
Double Taxation Agreement
Free Trade Agreement
Internal Revenue Department
Income Tax Law
Myanmar Investment Commission
Ministry of Planning, Finance and Industry
Personal Income Tax
Property Tax
Stamp Duty
Special Economic Zone
Specific Goods Tax
Union Tax Law
Withholding Tax

Page 1

Change of financial year in Myanmar
On 1 October 2021, the Internal Revenue Department (“IRD”) of the Ministryof Planning and Finance (“MOPF”) announced a change to the income year
(previously it was from 1 October to 30 September) of private and cooperative
sectors to run from 1 April to 31 March. As a consequence, the six-month
period from 1 October 2021 to 31 March 2022 (“FY2021-2022”) is specified
as an interim budget period for all private and cooperative sectors, including
government ministries, organizations, and state-owned enterprises.
The current financial year is running from 1 April 2022 to following 31 March2023 (“FY2022-2023”) and we understand that the relevant annual tax return
filing deadlines for taxpayers should be according to the table below.
Income Year
1 October 2020 to
30 September 2021
(FY2020-2021)
1 October 2021 to 31
March 2022 (FY20212022)
1 April 2022 to 31
March 2023 (FY20222023)

Deadlines for annual
tax returns filing
3 January 2022

30 June 2022

30 June 2023

Assessment Year
1 October 2021 to 31
March 2022
(FY2021-2022)
1 April 2022 to 31
March 2023
(FY2022-2023)
1 April 2023 to 31
March 2024
(FY2023-2024)

Based on the Union Tax Law 2021 and 2022, the new corporate income tax
rate, new commercial tax rates for certain business activities and the income
range changes for personal income tax are effective from 1 October 2021 andit will be valid until 31 March 2023.

Corporate Income Tax
Rates of tax
The Corporate Income Tax (“CIT”) rate has been reduced from 25% to 22%
effective from 1 October 2021 and it will be valid until 31 March 2023.
Accordingly, the new CIT rate for FY2021-2022 and FY2022-2023 will be at
22%.
The new CIT rate is applicable for Myanmar companies, branches registeredunder the Myanmar Companies Law (“MCL”) 2017, and companies operating
under an investment license from Myanmar Investment Commission (“MIC”)(i.e., foreign-owned resident companies with an investment license from the
MIC granted under the Foreign Investment Law and Myanmar Investment
Law 2016).
However, please note that the CIT rate of 20% for companies listed on the
Yangon Stock Exchange remains unchanged for FY2021-2022 and the CIT
rate has been reduced to 17% for FY2022-2023. Resident entities, which aredefined as companies established under the MCL, are obliged to declare andpay CIT on their worldwide income. Non-residents, including branches oroverseas corporations registered under the MCL, are only obliged to pay CIT
on their Myanmar-sourced income.

Deductibility
Generally, expenditures incurred for the purpose of earning business income
are deductible, subject to certain limitations. Capital expenditures, personal
expenditures, expenditures not commensurate with the volume of business,
inappropriate expenditures, expenditures incurred for purposes other thanearning such income, and payments made to a member of an association of
persons other than a company or a cooperative society, are not deductible.

Depreciation
A depreciation allowance is deductible for CIT purposes. Capital assets must
be capitalized and depreciated on a straight-line basis in accordance with therates set out in Notification 19/2016, the Second Regulations Amending theIncome Tax Regulations. If a taxpayer wishes to use a different tax depreciation
rate or a method, a request can be submitted to the IRD starting from FY20192020. If the IRD approves, different tax depreciation rate or method can beapplied. A full-year depreciation allowance can be claimed for the year inwhich a capital asset is acquired, regardless of whether the asset is used forall or part of that year. Please refer to Annex 1 (Page 25) for detailed tax
depreciation rates.
Page 3

Loss carry forward
Under the Income Tax Law 1974 (“ITL”), a tax loss incurred by a company canbe carried forward for up to three consecutive years and can be offset against
taxable profits in the future, with the exception of capital losses.

2% Advanced Income Tax on importation and exportation
Companies importing or exporting goods must pay a 2% Advance Income Tax(“AIT”) on the assessed value of the goods for import and export. There are a
few exceptions, including the import of materials and equipment during theconstruction period of projects, and raw materials imported during the first
three years of production under an investment license from MIC. The tax thatis collected as an AIT can be offset against the annual CIT liability.

Page 4

Withholding Tax
Overview
The MOPFI released Notification 47/2018 (“Notification 47/2018”) on 18 June2018 which revokes the Withholding Tax (“WHT”) Notification 51/2017. The
Notification 47/2018 is effective from 1 July 2018 (FY2018-2019). Please referto below table in relation to payments subject to WHT under Notification
47/2018.
The following WHT rates will be applicable for both FY2021-2022 and FY20222023.
Residents

Non-Residents

Type of Income

Notification
47/2018

Notification
47/2018

Interests
Royalties
Goods (Locally purchased goods)–payments made by governmentorganizations, ministries and stateowned enterprises
Goods (Locally purchased goods) –payments made by others apart fromgovernment organizations, ministries
and state-owned enterprises
Services (Locally rendered services)–payments made by governmentorganizations, ministries and stateowned enterprises
Services (Locally rendered services) –payments made by others apart fromgovernment organizations, ministries
and state-owned enterprises

0%
10%

15%
15%

2%

2.5%

0%

2.5%

2%

2.5%

0%

2.5%

The Notification 47/2018 imposes legal obligation on the payer to deduct
WHT from payments that are subject to WHT, regardless of whether theincome recipient has agreed to the deduction or not. Please note that the IRD
may recover the WHT from the payer if the payer is failed to deduct applicable
WHT. The payer can be a resident taxpayer or a non-resident taxpayer. The
obligation for deducting WHT rests with the payer.
Page 5

Exemption of WHT
Exemption from WHT deduction is given to payments between governmentorganizations, and payments made to respective government organizations
and stated-owned enterprises and interest payments to non-resident lenders
who open branches locally or file corporate income tax return for income
derived from the branch. Previously, Myanmar branches of foreign banks
were considered non-residents and are thus captured in Myanmar’s 15% WHT
rate on interest paid to non-residents. From 1 April 2017, the WHT on interest
payment to the Myanmar branches of foreign banks will no longer apply.

Minimum threshold
Under Notification 47/2018, there is a minimum threshold of MMK 1 million
for total payments within a year period for payments made by governmentorganizations, ministries and state-owned enterprises. However, there is no
minimum threshold for payments made to non-residents.

Double Taxation Agreement
If the non-resident taxpayer is a resident taxpayer of a country with which
Myanmar has a tax treaty, a relief may be available under the DTA. The IRD
will require the non-resident to provide the Certificate of Residence issued by
the tax authority of their country of residence. However, in order to enjoy thereliefs under the DTA, an application must be made to the IRD for approval.

Page 6

Capital Gains Tax
Overview
Capital assets include land, buildings and their rooms, vehicles, and workrelated capital assets. The expression also includes shares, bonds, securities
and similar instruments. Capital gains tax (“CGT”) is applicable to bothresident and non-resident taxpayers deriving a profit from the sale, exchange,or transfer of capital assets in Myanmar. CGT is payable by the person deriving
the gains. A CGT return must be lodged by any person who sells, exchanges
or transfers capital assets, even if there is no gain or loss.

Income threshold for paying CGT
If the total sale-value of the capital asset; which was sold, exchanged ortransferred, does not exceed MMK 10 million, CGT will not be applicable.

Rates of tax
The CGT rate for all taxpayers (with the exception of those deriving a gainfrom an upstream oil and gas asset or a company holding an upstream oil andgas asset) is 10%, and is imposed in either MMK or a foreign currency.
CGT for upstream oil and gas sector must be paid in the same currency inwhich the gain was received. The following rates apply:
Capital gain
1
2
3

Up to MMK100 billion
From over MMK100 billion to MMK150 billion
Over MMK150 billion

Tax rate
40%
45%
50%

Calculation of CGT
CGT is calculated on the full value of the sale, exchange or transfer after
deducting depreciation, the original asset cost, any capital expenditures
to increase the life of the asset, and any expenditures incurred in the
procurement, sale, exchange or transfer of the asset. Deprecation is notallowed for the year of disposal of the capital asset.

Page 7

Personal Income Tax
Overview
Employers, whether residents or non-residents of Myanmar for tax purposes,
are liable to deduct personal income tax (“PIT”) from payments of salaries,
wages and other remuneration made to all employees. Employees that are
residents of Myanmar (both Myanmar nationals and foreigners) are taxed on
their worldwide income at progressive rates after deducting the prescribedallowances and reliefs; whereas non-residents are taxed only on their
Myanmar-sourced income, at the same progressive rates

Residency
A foreign individual is considered as a resident foreigner for tax purposes ifthey are residing in Myanmar for 183 days and more during an income year
(1 October 2021 to the following 31 March 2022 for interim FY2021-2022
and 1 April 2022 to the following 31 March 2023 for FY2022-23). Accordingly,
foreigners who are residing in Myanmar for less than 183 days are considered
non-resident foreigners.

Taxable salary
Salary income as defined by the ITL includes “salary, wages, annuities,
bonuses, awards, and fees or commissions received in lieu of or in addition to
the salary or wages”. Taxable benefits are not defined under the law; therefore,
any payment from an employer to an employee will be considered a taxable
benefit unless it can be demonstrated that it is business-related only.
The following are exempt from PIT: pensions, gratuities, salary income of nonresident citizens received in foreign currency abroad, and money received
from the state lottery. According to the Union Tax Law (“UTL”) 2021 and 2022
anyone whose annual salary income is MMK4.8 million or less is exempt frompaying PIT.

Tax reliefs and allowances for Myanmar residents•••

Basic allowance of 20% of the total annual income, up to a maximumof MMK10,000,000 per year (approximately US$5,000)
MMK1,000,000 (approximately US$500) per annum for one nonworking spouse who is not earning assessable income during afinancial year and is living with the taxpayer
MMK500,000 (approximately US$250) per annum for each childliving with the taxpayer who fulfills ALL of the following criteria: (i)is unmarried; (ii) is not earning assessable income; and (iii) is either
under 18, or if 18 or over, is in full-time education

Page 8

••••

MMK1,000,000(approximately US$500) per parent for dependent
parents living with the taxpayer (the term “parent” includes a fatheror mother-in-law)
Premium paid for the life insurance of the taxpayer and the taxpayer’s
spouseContribution towards the savings fund as prescribed by the Income
Tax Rules
Social security contributions made by employees to the Social
Security Board (2% of annual salary, capped at MMK72,000 per
annum) (approximately US$36)

Using an exchange rate of US$1 = MMK2,000*

Rates of tax
The tax rates for resident and non-resident employees are now at the same
progressive rates, although for resident taxpayers, the PIT rates are applied on
their worldwide income after deduction of the reliefs and allowances above,
while for non-residents, the PIT rates are applied on their Myanmar-sourced
salary income without any deduction.
The following table shows the PIT rates on annual salary income. Approximate
US$ amounts are shown in brackets based on an exchange rate of US$1 =MMK2,000.
No.
1
2
3
4
5
6

Taxable Income Range
From MMK (US$)

To MMK (US$)

1 (0.0005)
2,000,000 (1,000)
2,000,001 (1,000)
10,000,000 (5,000)
10,000,001 (5,001)
30,000,000 (15,000)
30,000,001 (15,001)
50,000,000 (25,000)
50,000,001 (25,001)
70,000,000 (35,000)
70,000,001 (35,001) and above

Income tax rate
0%
5%
10%
15%
20%
25%

Social Security Contributions
The Social Security Law requires an employer with more than five employees
to contribute to a social security scheme. The rates of the monthly
contributions by the employer and employees are 3% and 2%, respectively,of an employee’s total salary including benefits (capped at a maximum
monthly salary of MMK300,000), in local currency or US dollars, dependingon the currency in which the employee is paid. Hence, the maximum
monthly contribution for an employee is MMK6,000, and for an employer it
Page 9is MMK9,000 per employee. The employer is responsible for deducting thecontribution from the employee’s salary and paying the amount to the social
security board.

Rental income
If income is derived from lease of land, buildings, or apartments for individual
taxpayers, such income will be subject to income tax at 10% after deductionof prescribed tax reliefs and allowances.
For state-owned enterprises, businesses, and companies operating under
permits issued by the MIC, or cooperative societies, income tax shall becharged at the applicable rates specified for that particular category oftaxpayers.

Page 10

Undisclosed source of income
Income escaping assessment will be subject to income tax at 30% forboth citizens and foreigners before deduction of prescribed tax reliefs andallowances mentioned under the PIT section.
However, if the citizen can disclose source for income used for buying,
constructing or acquiring any capital assets or establishing a new businessor expanding an existing business, the portion of income that source can beproved shall be deducted from the total undisclosed income and the balanceof the undisclosed income will be taxed at the progressive rates mentioned in
the table below. Undisclosed source of income is still subject to income tax at
progressive tax amnesty rates ranging from 3% to 30% under the amended
UTL 2021; however, the income ranges have been expanded.
From 1 October 2021 to 7 January 2022, the old income range will beapplicable. The new income range will be effective 8 January 2022 (FY202122) and it is valid until 31 March 2023 (FY2022-2023).
A comparison of old and new income ranges for undisclosed income is shownin the table below.
Tax
rate

Old Income Range (MMK)
under UTL 2021

New Income Range (MMK)
under amended UTL 2021

3%
5%
10%
15%
30%

1 – 100,000,000
100,000,001 – 300,000,000
300,000,001 – 1,000,000,000
1,000,000,001 - 3,000,000,000
3,000,000,001 and above

1 – 300,000,000
300,000,001 – 600,000,000
600,000,001 – 1,000,000,000
1,000,000,001 - 3,000,000,000
3,000,000,001 and above

Page 11

Double Taxation Agreement
Myanmar has Double Taxation Agreements (“DTAs”) in force with eight
countries: the United Kingdom, Singapore, Malaysia, Thailand, Vietnam, India,
the Republic of Korea, and Laos, with a number of other DTAs in the draft
stage, including Indonesia and Bangladesh. Accordingly, the income tax
imposts may be reduced by any DTAs that are currently in effect.
The relief under the applicable DTA is not automatically granted and thetaxpayer concerned must submit their arguments and evidence to the IRD
for review before their income tax becomes due. In other words, applications
for DTA relief must be approved before 31 March in each financial year.
Certificate of Residence will be required in a DTA application. Please note that
if the service contract value is US$100,000 and below, a payer under the SelfAssessment System is no longer required to submit a DTA relief application
to the IRD.

Page 12

Commercial Tax
Overview
Commercial tax (“CT”) is levied on four types of activities:••••

Local production and sale of goods
Importation of goods
Trading
Provision of services

Taxable and Non-taxable goods & services
Under UTL 2021 and UTL 2022, there are 45 goods exempted from CT, andthe majority of the exempted goods are related to food products (see Annex
2, Page 32, for details). And, 33 types of services are exempted from CT (seeAnnex 3, Page 37, for details).
All kinds of goods sold and services rendered in Myanmar are subject to CT at
5% except for the following goods and services:
Activities
Hotel and tourism services
The construction, renovation, andsale of buildings (whether by renting
state-owned land or a joint venture(“JV”) with the State or on privatelyowned land or by entering into a JV
with a private landowner)
The importation and sale of gold
jewelry
Internet services
Sale of a sim card and sim card
activation (effective 8 January 2022,
FY2021-2022)

CT Rate
3%
3%

1%
15%
MMK 20,000

Revenue threshold for charging and paying CT
Taxpayers whose revenue from trading, sale of goods and services in ayear exceeds the minimum threshold of MMK50 million are obliged tocharge, collect and pay CT to the IRD. A year means twelve months fromthe commencement of business including the month of commencement ofbusiness.

Page 13

Registration
CT on importation will be collected by the Customs Department together
with customs duty. In addition, if a taxpayer wishes to offset input CT (i.e.,
CT paid on the purchase of goods and services) against their output CT (i.e.,
CT charged on the sale of goods and services), the taxpayer is required to beregistered with the relevant Internal Revenue Department for CT purposes.

Rates of tax
Below is a summary of the applicable CT rates:
Activities
Importation
Local manufacturing
Trading
Exportation
Services rendered in Myanmar
Real estate- lease- sale of building
Importation and sale of jewelries made withgold
Hotel and tourism services
Internet
services
Sales of Sim-card and Sim-card activation

CT Rate
5% unless exempted
5% unless exempted
5% unless exempted
Zero rated, unless crude
oil 5% and electricity 8%
5% unless exempted
5%
3%
1%
3%
15%
MMK 20,000 per sim-card

Basis of taxation
The tax base is the sale or service proceeds including Specific Goods Tax(if applicable) from trading, rendering services, local production or sales ofgoods. For imports, the tax base is the CIF (cost, insurance and freight) value,customs duty and SGT (if applicable).

Offsetting input and output CT
All input CT can be offset against output CT. However, input CT paid on
damaged goods and unsold goods cannot be offset against output CT. If
there is more input CT than output CT at the end of the income year, theunutilized input CT cannot be carried forward or will not be refunded by the
IRD. However, such input CT can be deducted as a business expense when
Page 14

calculating CIT. Please note that unutilized input CT on advance rental fees,
unsold goods and unutilized raw materials can be carried forward to next
income year subject to IRD’s approval. We also note that input CT paid on thepurchase of jewelry made with gold cannot be offset against output CT on
the sale and exportation of such jewelry.

Page 15

Specific Goods Tax
Overview
Myanmar introduced a Specific Goods Tax (“SGT”), effective from 1 April 2016.
SGT is imposed on:•••

The import of specific goods into Myanmar
The local production of specific goods
The export of specific goods overseas

Therefore, importers, producers and exporters of specific goods are subject
to paying SGT. As per UTL 2021 and UTL 2022, there are 14 types of specificgoods.

SGT exemptions
There are a number of SGT exemptions, including an exemption for the exportof specific goods temporarily imported for the purpose of re-exporting in thesame condition.

Revenue threshold for charging and paying SGT
Apart from the local production of tobacco, cheroots and cigars that does notexceed the minimum threshold of MMK20 million, there is no threshold forother types of specific goods.

Registration
Importers, producers and exporters of specific goods must register with therelevant IRD.

Rates of tax
SGT rates are announced on a yearly basis in the UTL. Please refer to Annex
4 (Page 40) for current SGT rates imposed on local production andimportation as per the UTL 2021 and UTL 2022.
The SGT rates for exportation are mentioned in Annex 5 (Page 44).

Basis of taxation
The SGT basis for importation is the landed value of the specific goods. For
local production of specific goods which are taxable as per price range, thebasis is the greater of the factory sales price or the sales price as estimated andspecified by the Director General and Management Committee of the IRD. For
local production of specific goods which are not taxable as per price range
will be assessed based on the value determined Management Committeeof the IRD. However, the value determined by the IRD for locally produced
Page 16

specific goods which are not taxable as per price range would be similar tothe landed value of similar goods imported from overseas.

Offsetting input and output SGT
Input SGT can be offset with output SGT.

Page 17

Jewelry Tax
Overview
All gems and jewelries are excluded from specific goods category and will
now be subject to Jewelry Tax under the Myanmar Gemstone Law. Jewelry Tax
will be based on the higher value among the sales price of the seller and thesales price determined by the Myanma Gems Enterprise based on the actual
sales prices. For imported gems, Jewelry Tax will be based on the landed
value. Please refer to below table regarding Jewelry Tax rates.
No.

Type of gems

1.
2.

Raw jadeRaw gemstones of ruby, sapphire and other precious raw
gemstones, except diamonds and emeralds

3.

5%
Finished gemstones of jade, ruby, sapphire (except
diamonds and emeralds) and other finished precious
gemstones; and finished jewelry made with jade, ruby,sapphire, and other precious gemstones, except diamonds
and emeralds
Goods made with gemstones
5%

4.

Page 18

Tax rate
11%9%

Tax Compliance Requirements
The financial year in Myanmar is now from 1 April to following 31 March.

Compliance timelines and penalties
Tax

Payment

Filing

CIT

Payments
quarterly, within
10 days after
the end of eachquarter

Annual return
within threemonths after
the income
year-end (i.e.,
30 June)Payment on amonthly basis
within 10 days
after the monthend--

WHT Payment within
15 days of
payments to
suppliers. In
practice, thereturns andpayments canbe done on amonthly basis.
CT

Penalty--

Quarterly,
within one
month of theend of eachquarter andannual returns
within threemonths after
the income
year end (i.e.,
30 June)-Late payment - 10% of
unpaid tax due
Late return filing - the higherof either:- 5% of payable tax and 1%of payable tax for each orpart of the month during
which the failure to filecontinues; or- MMK 100,000
Late payment - 10% of
payable WHT amountFailure to deduct WHT – theIRD will consider the payer asa defaulter and will recoverpayable WHT amount fromthe payer
Late payment - 10% of
unpaid tax due
Late return filing - the higherof either:- 5% of payable tax and 1%of payable tax for each orpart of the month during
which the failure to filecontinues; or- MMK100,000

Page 19

Tax

Payment

Filing

PIT

Payments within
15 days after
disbursement ofsalaryAnnual return
within threemonths after
the income
year end (i.e.,
30 June)-Payment on amonthly basis,
within 10 days
after the monthend

Quarterly,
within 10
days after thequarter-end-

Payments within
30 days from thedate of transfer
or sale of capital
assetsTransaction
CGT filing –within 30 days
from the dateof transfer ofcapital assets

-

SGT

CGT

Page 20

Penalty---

Late payment - 10% of
unpaid tax due
Late return filing - the higherof either:- 5% of payable tax and 1%of payable tax for each orpart of the month during
which the failure to filecontinues; or- MMK100,000
Late payment - 10% of
unpaid tax due
Late return filing - the higherof either:- 5% of payable tax and 1%of payable tax for each orpart of the month during
which the failure to filecontinues; or- MMK 100,000
Late payment - 10% of
unpaid tax due
Late return filing - the higherof either:- 5% of payable tax and 1%of payable tax for each orpart of the month during
which the failure to filecontinues; or- MMK 100,000Other Taxes
Stamp Duty
The Stamp Act, as amended on 1 April 2014, is the fundamental legislationin respect of stamp duty (“SD”) obligations. The main purpose of levying SD
is to give legal effect to chargeable instruments. Chargeable instruments are
documents that create, transfer, extinguish or record rights or obligations.
As a general rule, SD is levied on all chargeable instruments, unless explicitly
exempted.
If the SD is not paid at the time of execution of the instruments or within one
month (in practice) of their execution, the IRD will impose a penalty of either
500MMK or three times the amount of the overdue SD.
Please refer to Annex 6 for (Page 45) detailed SD rates.

Property Tax
The fundamental legislation for property tax (“PT”) is the Yangon City
Development Law 2018 and Yangon City Development Committee (“YCDC”)
was created to administer these laws and collect PT. PT only applies to certain
land, buildings or land and buildings (“premises”) located within the territoryof Yangon (Territory); in other areas of Myanmar, for instance Mandalay or Nay
Pyi Taw, PT is administered in accordance with relevant local regulations.
PT includes four categories of taxes: miscellaneous tax, lighting tax, water tax
and sanitation tax. PT is levied on the annual value of land or premises inquestion but subject to different tax rates and is payable once in a year. The
rates and calculation of PT depend on the purposes of use of the premises.
The general user of the premises is liable to pay PT on an annual basis once
YCDC has already assessed the annual value of the premises.

Customs Duty
In Myanmar, customs duty is levied in accordance with the Sea and Land
Customs Act. Customs duty is levied on Assessment Value and is payableaccording to the tariff schedule listed by HS code published by the Customs
Department.

Page 21

Investment Incentives
Myanmar Investment Commission incentives
An investment license issued by the MIC for qualified projects provides anumber of advantages that have been specified in the Myanmar Investment
Law 2016, as outlined in the chart below.
No.

Advantage

1

CIT holiday

2

Tax-free profit if
reinvested

3

Depreciation

4

R&D deduction

5

Exemption forimports of machinery,equipment,materials, spare parts,
construction materials
that cannot bepurchased locally
Exemption for raw
materials and semifinished goods
Refund of taxes andcustom duty in case ofexport6

7

Page 22

Description
Only promoted business activities
mentioned under MIC Notification 13/2017is entitled to apply for income tax holiday.
Depending on the investment zone, the CIT
holiday period can be 7 years (Zone 1), 5
years (Zone 2) and 3 years (Zone 3).
Profit which is reinvested within one year
is exempt from CIT, including the profit
reinvested in any similar type of business
Higher depreciation rates may be allowed
to start from the date of commercial
operation
Right to deduct R&D costs from assessable
income. It is capped at maximum 10% of
the assessable income
Exemption from customs duty and otherlocal taxes during the construction period
and expansion period of the project i.e.,
maximum 2 years

Exempt from customs duty and other local
taxes for export-oriented businesses
When goods are exported, refund ofcustoms duty and other local taxes paid on
the import of the raw materials and semifinished goods used for manufacturing ofexport goods

Special Economic Zone incentives
There are two main zones under the Special Economic Zone (“SEZ”) Law, andbusinesses investing in an SEZ are provided with a number of advantages, as
listed in the chart below.
Exemptions& Relief

Free/Exempt Zone#

Promotion Zone#

7 years of CIT exemption
from the start of commercial
operations
CIT rate reduction of 50% forTax holiday the following 5-year period
50% of the profits exempted
for the next 5-year period(requires reinvestment of
profits within 1 year)
Exemption from customs
duty and other taxes onimports of: raw materials
to be used in production;
machinery and spare parts;
construction materials
to construct a factory,
warehouse, and offices;
Customsand vehicles and otherduty andequipment required for theother taxes business

Carry
forwardand set offof losses#

5 years of CIT exemption
from the start of commercial
operations
CIT rate reduction of 50% for
the second 5-year period
50% of the profits
exempted for the third 5-year
period (requires reinvestmentof profits within 1 year)
Exemption from customs
duty and other taxes for 5
years and a 50% reduction foranother 5 years on imports of:equipment and spare parts to
be used in the business (andnot for trading purposes);construction materials toconstruct a factory, andwarehouse; vehicles and otherequipment required for thebusiness
Can apply for a refund of thecustoms duty and other taxes
paid on the import of raw
materials, provided semifinished or finished goods areexported
Can be carried forward for 5 Can be carried forward for 5
years
years

Free/Exempt Zone is for export and Promotion Zone is for domestic sales
orientated business.
Page 23

Investment and Free Trade Agreements
Myanmar has signed the ASEAN Comprehensive Investment Agreement(“ACIA”) with other nine ASEAN member states (“ASEAN”) in 2012. In
addition, ASEAN has signed Free Trade Agreements (“FTA”) with China, South
Korea, Australia/New Zealand, Japan and India. Therefore, Myanmar has FTA
with five countries.
Myanmar has Bilateral Investment Treaties (“BIT”) with 12 countries which
include Israel, South Korea, the United States of America, Indonesia, Japan,
India, Thailand, Kuwait, Laos, China, Vietnam, Philippines.

Page 24

Annex 1: Tax Depreciation ScheduleNo.
1

Percentage ofthe originalvalue

Type of capital asset
BuildingaFirst-class reinforced concrete buildings
1

Factory buildings

2.5

2Other buildings

1.25

b Second-class brick buildingsc1

Factory buildings

52Other buildings

2.5

Wooden buildings with tiled or CGI sheet roofs
1

Factory buildings

102

Other buildings

5d Buildings made of bamboo and thatch

2

Repair cost
shall be allowed
as a current
expenditure

Furniture and fixturesaMiscellaneousb Furniture, fixtures, silverware and kitchenware
used in hotels, cinemas and apartments

5(No depreciable
amount isallowed for
crockery,glassware,linen andplastic sheets.
The cost of
replacing themwill be allowed
as a current
expenditure.)
6.25

Page 25

Tax Depreciation Schedule (cont.)
No.
c
3

Percentage ofthe originalvalue

Type of capital asset
Musical instruments used in hotels, theaters
and cinemas
Machinerya Miscellaneousb Specific depreciable amounts shall be allowed
for the following:
1
Rice mills
2
Wheat flour mills
3
Oil mills
4
Ice factories
5
Soft drink factories
6
Coffee factories
7Black tea factories
8
Distillery
9Bakery and biscuit factories
10 Noodle, vermicelli, etc. factories

Page 26

10

5

6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25

11

Flour mills

6.25

12

Canneries

6.25

13

Tanneries

6.25

14
15
16

Shoe factories
Dry cell factories
Glue factories

6.25
6.25
6.25

17
18
19
20
21

Soap factories
Candle factories
Rope-making factories
Aluminum kitchenware factories
Tin container factories

6.25
6.25
6.25
6.25
6.25

22

Plasticware factories

6.25

Tax Depreciation Schedule (cont.)
No.

Type of capital assetc4Percentage ofthe original
value

23
24

Sawmills
Quicklime kilns

6.25
6.25

25

Electric appliance factories

6.25

26

Rock wares factories

6.25

27

Smelting factories (except iron smelting)

6.25

28

Lathe machines

6.25

29

Dockyard machinery

6.25

30

Pulse and bean husking and splitting
mills

6.25

1

Oil cake factories

102

Chemical substance factories

103

Bleaching and dying factories

104

Rubber product factories

10

5Brick kilns

106

Roof tile factories

10

7

Wire and nail factories

108

Textile mills

10

9

Salt kilns

10

Machines and equipmentaOverhead cables (big)

b 1

2.5

Generators

6.25

2

Electric transmitters

6.25

3

Underground cables (big)

6.25

4

Elevators

6.25

5

General electrical appliances

6.25

6

Metal plating machines

6.25

7

Machines used for repair andmaintenance

6.25
Page 27

Tax Depreciation Schedule (cont.)
No.

Type of capital asset

c

5

6

7

8

Printing machines

9

Air compressors and pneumatic machines 6.25

Ice-cream makers

d Machines used for movie production andprojectione X-ray and therapeutic apparatuses
Water transportationa Non-motorized iron-hulled vessels
b Motorized iron-hulled vessels
c Wood-hulled vessels
Road transport vehicles
a 1
Motor vehicles
2
Bicycles and trishawsb Taxis, trucks, buses and non-motorized
vehiclesMiscellaneous
a 1
Office equipment
2
Weighing machines
3
Other machines and instruments used inworkshops and factories
4
5
6
7
8
9
10

Page 28

Percentage ofthe originalvalue

Garment and headgear-making machines
Machines used to produce leather andcanvas products
Refrigerating machines
Machines used for construction
Machines used to produce ironware forconstruction and household use
Machines used by mines
Hand-weaving looms

6.25
10
12.5
20
5
6.25
10
12.5
12.5
20

10
10
10
10
10
10
10
10
10
10

Tax Depreciation Schedule (cont.)
No.

8Type of capital asset
b 1
Sugar cane juice making machine
2
Surgical toolsc 1
Machines used for mechanized farming
2
CranesOther miscellaneous items for work purposesa 1
Airplanes
2
Machines used for data compilation andcalculators
3
Articles used by actors
4
Recording and amplifying apparatuses
5
Bottle cleaners
6
Carton box making machines
7
Breweries and distilleries
8
Cameras and photographic items
9
Cement factories

Percentage ofthe original
value
12.5
12.5
20
20
12.5
10
20
10
10
6.25
5
10
6.25

10
11
12
13
14

Chemical substance factories
Computerized machines
Cotton crushing machines
Condensed milk factories
Duplicators and photocopiers

6.25
20
6.25
10
10

15
16
17
18
19

Iron smelting machines
Glass factories
Pesticide factories
Knitting machines
Laundry and dyeing work
- General use equipment- Washing machines
Match factories

5
6.25

20

10
12.5
5
Page 29

Tax Depreciation Schedule (cont.)
No.

Percentage ofthe originalvalue

Type of capital asset
21

Oil and gas companies- Machines and equipment

5- Pipelines- Drilling equipment

520- Drilling platforms

10- Geophysical testing equipment

10- Seismic monitoring equipment

10- Other testing equipment

10

22

Oxygen and acetylene making machines

5

23

Paint and varnish making machines

6.25

24

Chicken meat processing machines

6.25

25

Sewing machines

10

26

Paint spraying machines

1027

Sugar making machines

6.25

28

Tarpaulin (canvas or plastic) machines

12.5

29

Television- Antennas

2.5- Other equipment

12.5- Receivers

Page 30(a) General

10(b) Rental

12.5

30

Roof tile machines

1031

Typewriters (electric and manual)

10

32

Umbrella making machines

1033

Vacuum cleaners

10Tax Depreciation Schedule (cont.)
No.

Type of capital asset
34

35

Percentage ofthe original
value

Video
- Game machines

20- Other video machines

10

Washing machines

12.5

Page 31Annex 2: Commercial Tax-exempted Goods
No.

Type of goods

Food Stuffs
1

Paddy, rice, broken rice, fine bran, coarse bran, husk, Fine and coarse
wheat bran, and wheat seeds, various types of maize and their seeds

2

Varieties of whole and split pulses and beans, and their flour, bran
and husks, Groundnuts, shelled and unshelled, Sesame, Niger,
residual oil-cake of groundnut, sesame, cotton seed, rice bran etc.

3Onions, garlic, Potatoes, Spices (leaves, fruit, seeds, bark) and spicemixtures (masala), Chili, chili powder, Turmeric and turmeric powder,
ginger, Ripe tamarind, Various types of salt

4

Fresh assorted fruit, Vegetables

5

Fresh tea leaves, dried tea leaves, dried shredded tea leaves,processed and packaged dried tea leaves

6

Fresh fish, fresh prawns, and fresh meat, Various types of eggs
(chicken, duck, etc.)

7

Groundnut oil, sesame oil

8

Sugarcane, sugar, jaggery, and brown slab sugar, various types ofmilk and dairy products, condensed milk, evaporated milk, various
types of milk powder, yoghurt and soy milk

9

Creamers

10

Varieties of fish sauce (ngan-pya-ye), Various types of dried fishand dried prawns, Various types of pickled fish and pickled prawns,
Coarse fish and prawn powder, Various types of fish paste (ngapi)

Agriculture and Livestock Related Goods
11

Mulberry leaves, Silk cocoons

12

Live animals, fish and prawns, terrestrial animals, aquatic animals,
amphibians, their eggs, their embryos, their offspring, and specimensfrom them, aquatic plants and seeds, seedlings, algae, and moss

Page 32

Commercial Tax-exempted Goods (cont.)
No.

Type of goods

13

Soil and fertilizers, including chemical fertilizers used for growing
plants and enhancing fructification in agricultural activities, various
types of agricultural insecticides, herbicides, fungus, bacteria,
nematodes and other plant protection agrochemicals, various types
of fumigations used in livestock farms (mosquito coils and sprays,
and rat poison not included), animal, fish and prawn medicines,
veterinary preventive medicines (including the medicines andpreventive medicines approved by the Ministry of Agriculture,
Livestock and Irrigation Development and medicines licensed by
Livestock Breeding and Veterinary Department), raw and finishedmaterials for animal, fish and prawn feed (excluding food for pets).

14

Palm oil, sunflower seeds, cotton seeds, pumpkin seeds, melon seeds,
cashew nuts, Areca (betel) nuts, areca (betel) nuts shells, quality cropand vegetable, seeds and plants

15

Raw cotton, cotton (assorted), cardamon, Thanakha , agricultural
products not specified elsewhere , Coconut oil (not palm oil)
Coconut yarn

1617

Firewood, bamboo, Raw and processed cane, fuel block as analternative to firewood

Goods used in offices and schools
18

Sealing wax, Assorted stamps (including revenue stamps)

19

National flag

20

Slate, slate pencils, and chalk, Graphite (lead) used for the productionof pencils
Various types of school textbooks, education and technical reference
books that can be used by schools, universities and colleges, exercise
books and drawing books, literature, magazines, journals andnewspapers, and paper for the production of such books (between
40 gsm and 80 gsm only) and all sorts of pencils, various types ofrulers, erasers, sharpeners.

21

Health Related Goods
22

Medicinal herbal plants
Page 33

Commercial Tax-exempted Goods (cont.)
No.

Type of goods

23

Various types of mosquito repellent for home use

24

Honey, beeswax

25

X-ray film, X-ray paraphernalia, and other medical equipment
prescribed by the Health Department, Medical cotton, cloth,bandages, hospital outfits, masked, surgical gloves, masks that areused in prevention of influenza virus and miscellaneous items,
Various types of household medicine and other pharmaceuticals andvarious types of traditional medicine (medicines given licensed orregistered under Food and Drug Administration which are not beenprohibited by any law and regulations), Raw materials for medicine
including raw materials for traditional medicine.

26

CondomReligions and Social Use Goods
27

Rosaries (except for rosaries made with precious gemstones),
Religious clothes (robes, etc.).

28

Fire engines, search and rescue vehicles and hearses

Transportation Related Goods
29

Fuel sold to foreign embassies, UN organizations and foreign
diplomats by the Ministry of Electricity and Energy

30

Jet fuel to be used for both international and domestic flights

31

Airplane and helicopter engines, equipment, accessories, and parts
thereofIndustrial Goods
32

Bleaching substances (only those that use hydrochloride forbleaching), Raw materials to produce detergent, Raw materials to
produce soap and raw soap

33

Jute and other fibers, Oil dregs and gum tragacanth

Page 34

Commercial Tax-exempted Goods (cont.)
No.

Type of goods

34

Agricultural and livestock tools; agricultural and livestock machineryand equipment, and their spare parts; tractors; equipment used for
preparing the land and harvesting, threshing and drying together
with humans or animals; machines and spare parts (except for motor
vehicles that are required to be licensed as per the Motor VehicleLaw), various livestock equipment and tools, machinery and spareparts used for livestock. Semen (including frozen semen), sperm,
and eggs used for artificial insemination for livestock improvement,
embryos, and equipment for artificial insemination.

35

Solar panels, solar charger controllers, and solar inverters

36

Raw materials or sub-assemblies or packaging materials for finishedgoods, machines, tools and machinery and their respective spareand extra parts that are not for resale and sent by clients fromabroad for the purpose of producing any finished goods on aContract Manufacturing basis.

Defense Related Goods
37

Weapons, vehicles, machinery, materials, equipment and their spareparts used by defense and security forces of the Union, Various
types of gunpowder, dynamite and any other materials for civilian
purposes (Only the products which are permitted by the office ofDefense in Chief (Army), Goods for the armed forces bought using
the allotted budget of the Ministry of Defense

Gemstones and Mineral Resources Related Goods
38

Blocks of pure gold (Standard gold bars and gold coins), Raw
gemstones and finished gemstones of jade, ruby, sapphire sold at
local Myanmar Gems Emporiums held by the Government

39

Oil dregs

Miscellaneous Goods
40

Goods to be sold at duty-free shops to passengers leaving thecountry.

Page 35

Commercial Tax-exempted Goods (cont.)
No.

Type of goods

41

Goods under the principle of reciprocity to be used by foreignembassies or consulates, their members and staff who are notambassador which are approved by the Ministry of Planning and
Finance by issuing the notification as per proposal of the Ministry ofForeign Affairs under the permission of Union Government.

42

Goods purchased from local or foreign sources under the name ofany local United Nations entity.

43

Goods purchased with cash donations or contributions given to theState by local or foreign benefactors.

44

Goods exempt from taxes by notification of the Union Government
with the approval of the State Administration Council according toState requirements.

45

Goods imported under temporary admission or on a drawback basis
subject to customs procedures.

Page 36Annex 3: Commercial Tax-exempted Services
No.

Type of service

Foreign Affair Sector
1Services used by foreign embassies or consulates and members andstaff thereof under the principle of reciprocity, recommended by
the Ministry of Foreign Affairs, notified by the Ministry of Planning,
Finance and Industry under the permission of Union Government.

2

Local services used under the name of the country offices of United
Nations organizations

Defense Sector
3

Publications by the Security Press of the Ministry of Defense

Religions and Cultural Affairs Sector
4

Culture and arts services

Transportation Sector
5Parking lot rental services

6

Haulage (cargo transportation) services (transport services bytrain, car, watercraft, airplane, and crane, except transport throughpipelines)

7

Moving services

8

Toll collection services

9

Domestic and international air passenger transportation services
with fares

10

Public transport services

11

Postal service provided by Union Government

Education and Information Sector
12

Education Services

13

Publishing services for books, magazines, journals, and newspapers

Health Sector
14

Healthcare services except from cosmetic surgery

15

Traditional massage and massage by the blind

16

Animal healthcare services
Page 37

Commercial Tax-exempted Services (cont.)
No.
17

Type of service
Public toilet entrance fee collection services

Planning and Finance Sector
18Life Insurance Services

19

Microfinance services

20

Capital market services

21

Banking and financial services conducted with the permission of theCentral Bank of Myanmar

22

Customs and port clearance services

23

Lottery businessSocial Welfare, Relief and Resettlement Sector
24

Catering equipment rental services

25

Funeral services

26

Childcare and nursery services

Industrial and Electrical Sector
27

Services provided on a contract manufacturing basis

28

Industrial agriculture services

29

Private small-scale electricity production and distribution services
provided to the regions that are not connected to the national gridyet

Miscellaneous Sector
30

License fees paid to government organizations in order to obtain any
license31

Services exempt by the notification of the Union Government
because of State requirements with the approval of the Pyidaungsu
Hluttaw

32

Services received via donations or contributions by local and foreignorganizations to the Union

Page 38

Commercial Tax-exempted Services (cont.)
No.

Type of service

33

Interdepartmental services between the President’s Office, Union
Government Office, Pyidaungsu Hluttaw Office, Pyithu Hluttaw Office,Amyotha Hluttaw Office, Union Supreme Court Office, Constitutional
Tribunal Office, Union Election Commission Office, Union Ministries,
Union Attorney General Office, Union Auditor General Office, Union
Civil Service Board Office, Nay Pyi Taw Council Office, Central Bankof Myanmar, Social Security Board, Region or State Government
Offices, government departments, etc. (except services provided toor received by state-owned economic enterprises)

Page 39Annex 4: Specific Goods Tax rates for local production
and importation
No.
1

(a)

Type of Specific goods

Price range

Tax rate

Cigarettes, all types

Up to a sales price of
MMK700 per pack of
20 cigarettes
For a sales price of
MMK701 to MMK900
per pack of 20
cigarettes
For a sales price of
MMK901 to MMK1,100
per pack of 20
cigarettes
For a sales priceof MMK1,101 andabove per pack of 20
cigarettes

MMK10 percigarette(b) Cigarettes, all types(c)

Cigarettes, all types(d) Cigarettes, all types

2
3
4

TobaccoVirginia tobacco, cured
Cheroot

5
6
7
8

CigarsPipe tobacco
Betel quid preparations(a) Liquor, all types(b) Liquor, all types(c)Liquor, all types(d) Liquor, all types(e)Page 40

Liquor, all types

MMK19 percigarette

MMK24 percigarette

MMK27 percigarette60%60%MMK1 percheroot80%80%80%
MMK200 to MMK1,000 MMK180 per
per liter
liter
MMK200 to MMK1,200 MMK190 per
per liter
liter
MMK1,201 to
MMK500 per
MMK2,300 per liter
liter
MMK2,301 to
MMK855 per
MMK3,400 per liter
liter
MMK3,401 to
MMK1,200
MMK4,600 per liter
per liter

Specific Goods Tax rates for local production andimportation (cont.)
No.
(f )

Type of Specific goods

Price range

Liquor, all types

MMK4,601 to
MMK5,800 per liter
MMK5,801 to
MMK7,000 per liter
MMK7,001 to
MMK8,200 per liter
MMK8,201 to
MMK9,400 per liter
MMK9,401 to
MMK10,600 per liter
MMK10,601 to
MMK11,800 per liter
MMK11,801 to
MMK13,000 per liter
MMK13,001 to
MMK14,200 per liter
MMK14,201 to
MMK15,400 per liter
MMK15,401 and above
per liter
MMK15,001 and above
per liter(g) Liquor, all types(h)Liquor, all types(i)

Liquor, all types(j)

Liquor, all types(k)Liquor, all types(l)Liquor, all types(m) Liquor, all types(n)Liquor, all types(o)Liquor, all types(p) Liquor, all types
910Beer, all types(a) Wine, all types(b) Wine, all types(c)Wine, all types(d) Wine, all types

Tax rate

MMK1,560
per liter
MMK1,920
per liter
MMK2,280
per liter
MMK2,640
per liter
MMK3,000
per liter
MMK3,360
per liter
MMK3,720
per liter
MMK4,230
per liter
MMK4,610
per liter
60% of thevalue per liter
60% of thevalue per liter
60%
Up to MMK850 per
MMK92 per
liter
liter
MMK851 to MMK1,600 MMK280 per
per liter
liter
MMK1,601 to
MMK2,350 per liter
MMK2,351 to
MMK3,100 per liter

MMK465 perliter
MMK653 per
liter
Page 41

Specific Goods Tax rates for local production andimportation (cont.)
No.

Type of Specific goods(e)Wine, all types(f )Wine, all types(g) Wine, all types(h)Wine, all types(i)Wine, all types(j)Wine, all types(k)Wine, all types(l)Wine, all types(m) Wine, all types
11
12

Timber logs, wood cuttings(a) 1,501 CC to 2,000 CC
vans, saloons, sedan
and Estate Wagon,
Coupe, except Pickup
andelectriccars
including Double Cab
4 Door Pickup(b) 2001 CC to 4000 CC
vans, saloons, sedan
and Estate Wagon,
Coupe, except Pickup
andelectriccars
including Double Cab
4 Door Pickup

Page 42

Price range

Tax rate

MMK3,101 to
MMK3,850 per liter
MMK3,851 to
MMK4,600 per liter
MMK4,601 to
MMK6,100 per liter
MMK6,101 to
MMK7,600 per liter
MMK7,601 to
MMK9,100 per liter
MMK9,101 to
MMK11,500 per liter
MMK11,501 to
MMK13,600 per liter
MMK13,601 to MMK
16,600 per liter
MMK16,601 and above
per liter

MMK839 per
liter
MMK1,025
per liter
MMK1,304
per liter
MMK1,676
per liter
MMK2,049
per liter
MMK2,421
per liter
MMK2,979
per liter
MMK3,724
per liter
50% of thevalue per liter
5%
10%

30%

Specific Goods Tax rates for local production andimportation (cont.)
No.

Type of Specific goods
(c)

13
14

4,001 CC and abovevans, saloons, sedan
and Estate Wagon,
Coupe, except Pickup
andelectriccars
including Double Cab
4 Door Pickup
Kerosene, gasoline, diesel,and jet fuelNatural gas

Price range

Tax rate
50%

5%
8%

Page 43

Annex 5: Specific Goods Tax rates for exportNo.
1

Specific Goods
Timber logs, wood cuttings

Page 44

Tax rate10%Annex 6: Selected Stamp Duty Schedules
Agreements and Counterparts
Description of Instrument
AGREEMENT OR MEMORANDUM OF
AGREEMENT :‐a. if relating to the sale of a bill of
exchange;b. if relating to the sale of a Government
security or share in an incorporated
company or other body corporate;c. if relating to joint venture agreement,
production or profit-sharing contract,
construction agreement or othersimilar agreement or contract;
if not otherwise provided for.

Proper Stamp‐duty

MMK50
Subject to a maximum of
MMK10,000, MMK25 for every
MMK100,000 or part thereofof the value of the security
or share.
One per centum on theamount or value of thesubject matters. Provided thatthe maximum duty shall be
MMK150,000.
MMK300Exemptions
Agreementormemorandumofagreement:‐a. for or relating to the sale of goods ormerchandise exclusively, not being a
NOTE OR MEMORANDUM chargeable
under No.43;
b. made in the form of tenders to theGovernment of the Union of Myanmar
for or relating to any loan;c. made under the Land Acquisition Act.
d. AGREEMENT TO LEASE See LEASE ( NO.35)

Page 45

Selected Stamp Duty Schedules (cont.)
Description of Instrument

Proper Stamp‐duty

AGREEMENT RELATING TO DEPOSIT OF
TITLE‐DEEDS, PAWN OR PLEDGE, thatis to say, any instrument evidencing anagreement relating to :‐1. the deposit of title‐deeds or instruments
constituting or being evidence of thetitle to any property whatever (otherthan a marketable security) ;or
2. the pawn or pledge of moveable
property. Where such deposit, pawn
or pledge has been made by way of
security for the repayment of money
advanced or to be advanced by way ofloan or an existing or future debt :‐The same duty as a Bill of
Exchange [No.13(a)] for theamount secured (if payable
on demand, 0.0065% of theamount or value; if payable
otherwise than on demand,
0.5% of the amount or value).
b. if such loan or debt is repayable not Half the duty payable on a Bill
more than three months from the of Exchange [No.13 (a)] for thedate of such instrument.
amount secured.
a. if such loan or debt is repayable on
demand or more than three months
from the date of the instrument
evidencing the agreement;

Exemptions
Instrument of pawn or pledge of goods if
unattested
COUNTERPART OR DUPLICATE of any
instrument chargeable with duty and inrespect of which the proper duty has been
paid:‐
a. if the duty with which the original The same duty as is payable
instrument is chargeable does not on the original.
exceed kyat 150;b. in any other case.
Page 46

MMK100Selected Stamp Duty Schedules (cont.)
Description of Instrument

Proper Stamp‐duty

Exemptions
Counterpart of any lease granted to acultivator when such lease is exemptedfrom duty.
LETTER OF CREDIT, that is to say, any MMK200
instrument by which one person authorizes
another to give credit to the person inwhose favor it is drawn.
LETTER OF GUARANTEE. See AGREEMENT(No.5).

Bond
Description of Instrument
BOND as defined by section 2(5), not being a
DEBENTURE (No.27), and not being otherwise
provided for by this Act or by the Court FeesAct –See ADMINISTRATION‐BOND(No.2), BOT
TOMRY BOND (No.16), CUSTOMS BOND
(No.26), INDEMNITY‐BOND (No.34), RE
SPONDENTIA BOND (No.56), SECURITY
BOND (No.57).
Exemptions
Bond, when executed by ‐Any person for the purpose of guaranteeingthat the local income derived from private
subscriptions to a charitable dispensary or
hospital or any other object of public utility
shall not be less than a specified sum permensem.

Proper Stamp‐duty
0.5 per centum on theamount or value.

``

Page 47

Selected Stamp Duty Schedules (cont.)
Conveyance, lease, mortgage and re-conveyance
Description of Instrument

Proper Stamp‐duty

CONVEYANCE, as defined by section Two per centum on the amount2(10) not being a TRANSFER charged or or value (additional 2% if relates
to immovable property).
exempted under No.62‐
Exemptions
Assignment of copyright made under
the Myanmar Copyright Act. CO‐
PARTNERSHIP‐DEED. See PARTNERSHIP(No.46)FURTHER CHARGE:‐ Instrument of, that is The
same
duty
as
a
to say, any instrument imposing a further CONVEYANCE (No.23) (2%) fora consideration equal to thecharge on mortgaged property:‐amount of the further charge
secured by such instrument.
a. when the original mortgage is one ofthe description referred to in Clause(a) of Article No.40 (that is, withpossession);b. when such mortgage is, one of thedescription referred to in Clause (b)of Article No.40 ( that is, without
possession): ‐i. if at the time of execution of the
instrument of further charge
possession of the property is given
or agreed to be given under such
instrument;

The
same
duty
as
a
CONVEYANCE (No.23) (2%)
for a consideration equal
to the total amount of thecharge (including the original
mortgage and any further
charge already made) lessthe duty already paid on suchoriginal mortgage and further
charge.

ii. if possession is not given.

The same duty as a Bond
(No.15) (0.5%) for the wholeamount payable or deliverable
under such instrument.

Page 48

Selected Stamp Duty Schedules (cont.)

Description of Instrument

Proper Stamp‐duty

LEASE, including an under‐lease or sub‐lease and any agreement to let or sub ‐let: ‐
a. where by such lease the rent is fixedand no premium is paid or delivered:‐
i. where the lease purports to be for a The same duty as a Bondterm of less than one year
(No.15) (0.5%) for the wholeamount payable or deliverable
under such lease.
ii. where the lease purports to be for The same duty as a Bonda term of not less than one year but (No.15) (0.5%) for the amount
not more than three years;
or value of the average annual
rent reserved.
iii. where the lease purports to be for a The
same
duty
as
a
term in excess of three years;
CONVEYANCE (No.23) (2%) fora consideration equal to theamount or value of the averageannual rent reserved.
iv. where the lease does not purport to The
same
duty
as
a
be for any definite term;
CONVEYANCE (No.23) (2%) fora consideration equal to theamount or value of the averageannual rent which would be
paid or delivered for the firstten years if the lease continued
so long.

Page 49

Selected Stamp Duty Schedules (cont.)
Description of Instrument

Proper Stamp‐duty

v. where the lease purports to be in The
same
duty
as
a
perpetuity;
CONVEYANCE (No.23) (2%) fora consideration equal to theone‐fifth of the whole amountof the rents which would be
paid or delivered in respect of
the first fifty years of the lease.
b. where the lease is granted for a fine or The
same
duty
as
a
premium or for money advanced and CONVEYANCE (No.23) (2%) for
where no rent is reserved;
a consideration equal to theamount or value of such fineor premium or advance as set
forth in the lease.
c. where the lease is granted for a fine The
same
duty
as
a
or premium or for money advanced in CONVEYANCE(No.23) (2%) for
addition to rent reserved.
a consideration equal to theamount or value of such fineor premium or advance as set
forth in the lease, in addition
to the duty which would havebeen payable on such lease if
no fine or premium or advance
had been paid or delivered.
Provided that, in any casewhen an agreement to lease isstamped with the ad valorem
stamp required for a lease, anda lease in pursuance of suchagreement is subsequently
executed, the duty on suchlease shall not exceed kyat 300.

Page 50

Selected Stamp Duty Schedules (cont.)
Description of Instrument

Proper Stamp‐duty

Exemptions
a. Lease executed in the case of acultivator and for the purposes ofcultivation (including a lease of trees
for the production of food or drink),
without the payment or delivery of any
fine or premium, when a definite termis expressed and such term does notexceed one year, or when the averageannual rent reserved does not exceedkyat 10,000.
b. Leases of fisheries granted under the
existing Laws.

MORTGAGE‐DEED, not being an“AGREEMENT RELATING TO DEPOSIT OF
TITLEDEEDS, PAWN OR PLEDGE (No.6)”,
BOTTOMRY BOND (No.16), MORTGAGE
OF A CROP (No.41), RESPONDENTIA
BOND (No.56), OR SECURITY BOND
(No.57):‐a. when possession of the property or
any part of the property comprised insuch deed is given by the mortgagor
or agreed to be given;

The
same
duty
as
a
CONVEYANCE (No.23) (2%)(Additional 2% if relates toimmovable property) for aconsideration equal to theamount secured by such deed.
b. when possession is not given or The same duty as a BOND
agreed to be given as aforesaid;(No.15) (0.5%) for the amountsecured by such deed.

Page 51

Selected Stamp Duty Schedules (cont.)
Description of Instrument

Proper Stamp‐duty

Explanation
A mortgagor who gives to the mortgagee
a power‐of‐attorney to collect rents or alease of the property mortgaged or part
thereof, is deemed togive possession
within the meaning of this Article;
c. when a collateral or auxiliary or
additional or substituted security, orby way of further assurance for theabovementioned purpose, where theprincipal or primary security is duly
stamped:‐-for every sum secured not kyat 50
exceeding kyat 1,000,000; and-for every kyat 100,000 or part kyat 50
thereof secured in excess of kyat
1,000,000.

Exemptions
1. Instruments executed by persons
taking advances under the existing
relevant Laws, or by their sureties as
security for the repayment of such
advances.
2. Letter of hypothecation accompanying
a bill of exchange.
RECONVEYANCE of mortgaged property Subject to the maximum ofor instrument of extinguishment of a kyat 10,000 the same duty as
mortgage.
a CONVEYANCE (No.23) (2%)(Additional 2% if relates toimmovable property) for theamount of the consideration forthe mortgage.

Page 52

Selected Stamp Duty Schedules (cont.)
Promissory Note
Description of Instrument

Proper Stamp‐duty

PROMISSORY NOTE [as defined bysection 2(22)]:‐a. when payable on demand:‐i. when the amount or value does
not exceed kyat 25,000;

kyat 50

ii. when the amount or value exceeds kyat 100
kyat 25,000 but does not exceedkyat 100,000;
iii. in any other case.
b. when payable otherwise than on
demand.

kyat 150
The same duty as a BILL
OF EXCHANGE (No.13) for
the same amount payable
otherwise than on demand (ifpayable on demand, 0.0065% of
the amount or value; if payable
otherwise than on demand,
0.5% of the amount or value).

Transfer
Description of Instrument

Proper Stamp‐duty

TRANSFER ( whether with or without
consideration ):‐a. of shares in an incorporated company or 0.1 Per centum on the value
other body corporate;of share.
b. of debentures, being marketablesecurities, whether the debenture isliable to duty or not, except debentures
provided for by section 8;

0.1 Per centum on the fix
amount of the debentures.

c. of any interest secured by a bond,mortgage‐deed or policy of insurance:‐

Page 53

Selected Stamp Duty Schedules (cont.)
Description of Instrument

Proper Stamp‐duty

i. if the duty on such bond, mortgage
deed or policy does not exceed kyat
500;

The duty with which suchbond, mortgage‐deedor policy of insurance ischargeable.

ii. in any other case.

kyat 300

d. of any property under the Administrator kyat 300
General’s Act, section 25;
e. of any trust ‐property without
consideration from one trustee toanother trustee or from a trustee to abeneficiary
Exemptions
Transfers by endorsement:‐
a. of a bill of exchange, cheque or
promissory note;b. of a bill of lading, delivery order,
warrant for goods, or other mercantile
document of title to goods;
c. of a policy of insurance; (d) of securitiesof the Government of the Union of
Myanmar.
See also section 8.

Page 54

300 kyat or such smaller
amount as may be chargeable
under clauses (a) to (c) of this
ArticleClassification of zones under Myanmar Investment Law

KACHIN STATESAGAING REGION

CHIN STATESHAN STATEMAGWAY REGION
MANDALAY REGIONRAKHINE STATENAY PYI TAWKAYAH STATE

State / Region

BAGO REGIONKAYIN STATEAYEYARWADY REGIONYANGON REGIONMON STATEThe Republic of the Union of Myanmar
Myanmar Investment Commission
Notification No. 10/2017
The 11th Waning Day of Tabodwe, 1378 M.E(22 February, 2017)
TANINTHARYI REGION

Zone 1: Less developed areas
Zone 2: Moderately developed areas
Zone 3: Developed areas

Kachin State
Kayar State
Kayin State
Chin State
Mon State
Rakhin State
Shan State
Tanintharyi Region
Bago Region
Magwe Region
Mandalay Region
Ayeyarwaddy Region
Yangon Region
Sagaing Region
Nay Pyi Taw Union
Territory

Zone Zone Zone
1
2
3
14
7
7
8
2
17
41
4
7
13
2
10
34

4
3
7
8
14
23
12
13
17
13
3
8

14
32

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