MYANMARTAX BOOKLET

2020 - 2021

Get to the point.

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Published by VDB Loi Co., Ltd November 2020
Version 1.0
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Contents
Abbreviations................................................................................. 1
Corporate Income Tax..................................................................... 3
Rates of tax ..................................................................................... 3
Deductibility .................................................................................... 3
Depreciation ................................................................................... 3
Loss carry forward .......................................................................... 3
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
Undisclosed source of income.......................................................10
Rental income...............................................................................11
Double Taxation Agreement .........................................................12
Commercial Tax.............................................................................13
Overview........................................................................................ 13
Non-taxable goods and services.................................................... 13
Revenue threshold for charging and paying CT ............................ 13
Registration .................................................................................. 13
Rates of tax.................................................................................... 13
Basis of taxation............................................................................ 14
Offsetting input and output CT ..................................................... 14

Specific Goods Tax.........................................................................15
Overview........................................................................................ 15
SGT exemptions............................................................................. 15
Revenue threshold for charging and paying SGT........................... 16
Registration................................................................................... 16
Rates of tax.................................................................................... 16
Basis of taxation............................................................................ 16
Offsetting input and output SGT.................................................... 16
Jewelry Tax....................................................................................17
Overview ....................................................................................... 17
Tax Compliance Requirements ......................................................18
Compliance timelines and penalties ............................................. 18
Other Taxes...................................................................................20
Stamp Duty.................................................................................... 20
Property Tax................................................................................... 20
Customs Duty................................................................................. 20
Investment Incentives...................................................................21
Myanmar Investment Commission incentives............................... 21
Special Economic Zone incentives.................................................. 22
Investment and Free Trade Agreements ...................................... 23
Annex 1: Tax Depreciation Schedule..............................................24
Annex 2: Commercial Tax-exempted Goods...................................30
Annex 3: Commercial Tax-exempted Services.................................35
Annex 4: Specific Goods Tax rates for local production
and importation............................................................................38
Annex 5: Specific Goods Tax rates for export..................................42
Annex 6: Selected Stamp Duty Schedules......................................43
Agreements and Counterparts....................................................... 43
Bond.............................................................................................. 45
Conveyance, lease, mortgage and re-conveyance......................... 46
Promissory Note............................................................................ 50
Transfer.......................................................................................... 51

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

Corporate Income Tax
Rates of tax
The current corporate income tax (“CIT”) rate is 25% for Myanmar companies,
branches registered under the Myanmar Companies Law (“MCL”) 2017, andcompanies 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 CIT rate for companies listedon the Yangon Stock Exchange is 20% effective from 2017-2018 income year.
Resident entities, which are defined as companies established under the MCL
are obliged to declare and pay CIT on their worldwide income. Non-residents,
including branches or overseas 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 the rates
set out in Notification 19/2016, the Second Regulations Amending the Income
Tax Regulations. If a taxpayer wishes to use a different tax depreciation rate ora method, a request can be submitted to the IRD starting from FY2019-2020. If
the IRD approves, different tax depreciation rate or method can be applied. A
full-year depreciation allowance can be claimed for the year in which a capital
asset is acquired, regardless of whether the asset is used for all or part of thatyear. Please refer to Annex 1 (Page 24) for detailed tax depreciation rates.

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.

Page 3

2% Advanced Income Tax on importation and exportation
Companies importing or exporting goods must pay a 2% Advanced 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 that iscollected 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 refer tobelow table in relation to payments subject to WHT under Notification 47/2018.
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 WHTfrom payments that are subject to WHT, regardless of whether the income
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 wereconsidered 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 both resident
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 gain froman upstream oil and gas asset or a company holding an upstream oil and gas
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 in which
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 toincrease the life of the asset, and any expenditures incurred in the procurement,
sale, exchange or transfer of the asset. Deprecation is not allowed for the yearof 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 Myanmarsourced 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 (1October to following 30 September). 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 salaryor 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 fromthe state lottery. According to the Union Tax Law (“UTL”) 2020 anyone whose
annual salary income is MMK4.8 million or less is exempt from paying PIT.

Tax reliefs and allowances for Myanmar residents
•
•
•

•

Basic allowance of 20% of total annual income (capped at MMK10
million total basic allowance per year) (approximately US$7,692)
MMK1,000,000 (approximately US$769) per annum for one nonworking spouse who is not earning assessable income during a financial
year and is living with the taxpayer
MMK500,000 (approximately US$385) 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 under18, or if 18 or over, is in full-time education
MMK1,000,000(approximately US$769) per parent for dependent
parents living with the taxpayer (the term “parent” includes a father- or
mother-in-law)

Page 8•••*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$55)

Using an exchange rate of US$1 = MMK1,300

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$1 =MMK1,300.
Personal income tax rates
From MMK (US$)

To MMK (US$)

1 (0.0008)
2,000,000 (1,538)
2,000,001(1,539)
5,000,000 (3,846)
5,000,001(3,847)
10,000,000 (7,692)
10,000,001(7,693)
20,000,000 (15,385)
20,000,001(15,386)
30,000,000 (23,077)
30,000,001 (23,078) 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 tocontribute 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, depending on the currency inwhich the employee is paid. Hence, the maximum monthly contribution for an
employee is MMK6,000, and for an employer it is MMK9,000 per employee. The
employer is responsible for deducting the contribution from the employee’ssalary and paying the amount to the social security board.
Page 9

Undisclosed source of income
Income escaping assessment will be subject to income tax at 30% for both
citizens and foreigners before deduction of prescribed tax reliefs and allowances
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.
No.

Income (MMK)

a.
b.
c.
d.

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

Page 10

Income Tax Rate
6%
10%
20%
30%

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 deduction ofprescribed tax reliefs and allowances.
For state-owned enterprises, businesses and companies operating under
permits issued by the MIC, or cooperative societies, income tax shall be charged
at the applicable rates specified for that particular category of taxpayers.

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 30 September 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

Non-taxable goods and services
There are 43 goods exempted from CT, and the majority of the exempted
goods are agricultural goods and related products (see Annex 2 (Page 30)
for details). All kinds of services rendered in Myanmar are subject to CT at 5%,
except 33 types of exempted services (see Annex 3 (Page 35) for details).

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

Registration
CT on importation will be collected by the Customs Department together withcustoms 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 be registered withthe 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

CT Rate
5% unless exempted
5% unless exempted
5% unless exempted
Zero rated, unless crude
oil 5% and electricity 8%
5% unless exempted

Page 13

Activities

CT RateReal estate-- lease
5%-- sale of building
3%
Importation and sale of jewelries made with 1%
gold

Basis of taxation
The tax base is the sale or service proceeds including Specific Goods Tax (ifapplicable) from trading, rendering services, local production or sales of goods.
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, the unutilized 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 calculating CIT.
Please note that unutilized input CT on advance rental fees, unsold goods andunutilised raw materials can be carried forward to next income year subject
to IRD’s approval. We also note that input CT paid on the purchase of jewelry
made with gold cannot be offset against output CT on the sale and exportationof such jewelry.

Page 14

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 topaying SGT. There are 14 types of specific goods.

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.

Page 15

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 38) for current SGT rates imposed on local production and importation
as per the UTL 2018 - 2019.
The SGT rates for exportation are mentioned in Annex 5 (Page 42).

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 Committee of the
IRD. However, the value determined by the IRD for locally produced specificgoods which are not taxable as per price range would be similar to the landed
value of similar goods imported from overseas.

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

Page 16

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 the sales
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

Tax rate

1.
2.

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

11%
9%

3.

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.

5%

Page 17

Tax Compliance Requirements
The financial year in Myanmar is from 1 October to following 30 September.

Compliance timelines and penalties
Tax

Payment

FilingPenalty

CIT

Payments
quarterly, within
10 days after
the end of eachquarter

Annual return
within 3
months after
the income
year-end (i.e.,
31 December)-- 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 amount-- Failure to deduct WHT – IRD
will consider the payer as adefaulter and will recoverpayable WHT amount fromthe payer

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

Payment on amonthly basis
within 10 days
after the monthend

Page 18

Quarterly,-- Late payment - 10% of unpaid
within one
tax duemonth of-- Late return filing - the higher
the end ofof either:each quarter-- 5% of payable tax and 1%
and annualof payable tax for each or
returns withinpart of the month during
3 months after
which the failure to filethe income year
continues; orend (i.e., 31-- MMK 100,000
December)Tax

Payment

PIT

Payments within
15 days after
disbursement ofsalaryAnnual return-- Late payment - 10% of unpaid
within 3
tax duemonths after-- Late return filing - the higher
the income yearof either:end (i.e., 31-- 5% of payable tax and 1%
December)of payable tax for each orpart of the month during
which the failure to filecontinues; or-- MMK 100,000

FilingPenalty

SGT

Payment on amonthly basis,
within 10 days
after the monthend

Quarterly,
within 10
days after thequarter-end

CGT

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

Page 19

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 43) 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 territory of
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 20

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

Equal income tax rate5

R&D deduction

6

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

7

8

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 another similar type ofbusiness
Accelerated depreciation may be allowed tostart from the date of commercial operation
Income tax rates on foreign investors are thesame as on resident citizens
Right to deduct R&D costs from assessable
incomeExemption from customs duty and otherlocal taxes during the construction period
and expansion period of the project

Exempt from customs duty and other local
taxes for businesses which export their
entire production
When goods are exported, refund ofcustoms duty and other local taxes paidon the import of the raw materials andsemi-finished goods of those goods that areexported
Page 21

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

Tax holiday

Customs
duty andother taxes

Carryforwardand set offof losses#

Free/Exempt Zone#

Promotion Zone#

7 years of CIT exemption
from the start of commercial
operations
CIT rate reduction of 50% for
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;and vehicles and otherequipment required for thebusiness

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 anda 50% reduction for another 5
years on imports of: equipment
and spare parts to be usedin the business (and not fortrading purposes); construction
materials to construct a factory,
and warehouse; vehicles andother equipment required forthe businessCan 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 22

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 and India. Therefore, Myanmar has FTA with four
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 23

Annex 1: Tax Depreciation Schedule
No.
1

Type of capital asset
Building
a

b

c

d

2

Percentage ofthe originalvalue

First-class reinforced concrete buildings
1

Factory buildings

2.5

2Other buildings

1.25

Second-class brick buildings
1

Factory buildings

52Other buildings

2.5

Wooden buildings with tiled or CGI sheet roofs
1

Factory buildings

102

Other buildings

5

Buildings made of bamboo and thatch

Repair cost
shall be allowed
as a current
expenditure

Furniture and fixturesaMiscellaneousb

Furniture, fixtures, silverware and kitchenware
used in hotels, cinemas and apartmentscMusical instruments used in hotels, theaters
and cinemas

Page 245(No depreciable
amount isallowed for
crockery,glassware, linen
and plastic
sheets. The costof replacing themwill be allowed
as a current
expenditure.)
6.25
10

Tax Depreciation Schedule (cont.)
No.

Type of capital asset

3

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

Percentage ofthe original
value
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
22
23
24

Soap factories
Candle factories
Rope-making factories
Aluminum kitchenware factories
Tin container factories
Plasticware factories
Sawmills
Quicklime kilns

6.25
6.25
6.25
6.25
6.25
6.25
6.25
6.25
Page 25

Tax Depreciation Schedule (cont.)
No.

Type of capital assetc4Percentage ofthe original
value

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)

2.5

b

1

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 and maintenance 6.25

8Printing machines

6.25

9

Air compressors and pneumatic machines

6.25

cPage 26

Ice-cream makers

10Tax Depreciation Schedule (cont.)
No.

Type of capital asset
d

5

6

7

Percentage ofthe originalvalue

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 trishaws

12.5

b Taxis, trucks, buses and non-motorized vehicles
Miscellaneous
a 1
Office equipment
2
Weighing machines
3
Other machines and instruments used inworkshops and factories
4
Garment and headgear-making machines
5
Machines used to produce leather andcanvas products
6
Refrigerating machines
7
Machines used for construction
8
Machines used to produce ironware forconstruction and household use
9Machines used by mines
10 Hand-weaving loomsb 1
Sugar cane juice making machine
2
Surgical toolsc 1
Machines used for mechanized farming
2
Cranes

20

20
5
6.25
10
12.5
12.5

10
10
10
10
10
10
10
10
10
10
12.5
12.5
20
20
Page 27

Tax Depreciation Schedule (cont.)
No.

Type of capital asset

8

Other 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

Page 28

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

9

Cement factories

6.25

10
11
12
13
14
15
16
17

Chemical substance factories
Computerized machines
Cotton crushing machines
Condensed milk factories
Duplicators and photocopiers
Iron smelting machines
Glass factories
Pesticide factories

6.25
20
6.25
10
10
5
6.25

18
19

20

Knitting machines
Laundry and dyeing work
- General use equipment- Washing machines
Match factories

21

Oil and gas companies

10
12.5
5

- Machines and equipment

5- Pipelines- Drilling equipment

520

Tax Depreciation Schedule (cont.)
No.

Type of capital asset

Percentage ofthe originalvalue- 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(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

34

Video

35

- Game machines

20- Other video machines

10

Washing machines

12.5
Page 29

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 andhusks, peanuts, groundnuts, sesame seeds, niger seeds, and oil cakes,
such as walnut oil cake, sesame oil cake, cotton seed oil cake, and ricebran oil cake3

Garlic, onions, potatoes, spices (leaves, fruit, seeds, bark) and spicemixtures (masala), chili, chili powder, turmeric and turmeric powder,
ginger, ripe tamarind, and various types of salt

4

Fresh assorted fruit, Vegetables

5

Fresh tea leaves, dried tea leaves, dried shredded tea leaves, processedand 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; milk, soymilk andvarious types of dairy products, condensed milk, evaporated milk, andmilk powder, yoghurt (excluding dairy alternatives which are not madefrom cow milk, buffalo milk or goat milk, and creamers)

9

Varieties of fish sauce (ngan-pya-ye); various types of dried fish anddried 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
10

Mulberry leaves; silk cocoons

11

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 30

Commercial Tax-exempted Goods (cont.)
No.

Type of goods

12

Topsoil and various types of fertilizers, including chemical fertilizers
used for growing plants and enhancing fructification in agriculturalactivities; various types of agricultural pesticides; herbicides; fungus,
bacteria, nematodes and other plant protection agrochemicals; various
types of fumigations used in livestock farms (excluding mosquito coils
and sprays, and rat poison); drugs and vaccines used for animals,
fish and prawn/shrimp (including the drugs and vaccines certified
by the Ministry of Agriculture, Livestock, and Irrigation, and drugs
approved by the Livestock Breeding and Veterinary Department); rawmaterials for animal, fish or prawn/shrimp feeds and finished products(excluding feeds for pet animals)

13

Oil palm, sunflower seeds, cotton seeds, pumpkin seeds, melon seeds,
cashew nuts, cashew nuts, Areca (betel) nuts, areca (betel) nuts shells;
quality crop seeds and plants

14

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

15
16

Firewood; bamboo; raw and processed cane; firewood alternative
blocksSchools and Office Use Goods
17

Sealing wax; assorted stamps (including tax stamps)

18

National flag

19

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 of rulers,
erasers, sharpeners.

20

Page 31Commercial Tax-exempted Goods (cont.)
No.

Type of goods

Health-related Goods
21

Medicinal herbal plants

22

Honey, beeswax

23

X-ray film, X-ray paraphernalia, and other medical equipment
prescribed by the Food and Drug Administration Department; medical
cotton, gauze cloth, bandages, and materials used for medical
dressings, disposable surgical masks, surgical caps, surgical gloves,masks that are used in prevention of influenza virus; various types ofhousehold medicines and other pharmaceuticals and various types of
traditional medicines (medicines registered with the Food and Drug
Administration Department, excluding the drugs which are prohibitedby any laws and rules); raw materials for medicines including raw
materials for traditional medicines

24

Condoms

Religions and Social Use Goods
25

Rosaries (excluding rosaries made with precious gemstones); religious
clothes (robes, etc.)

26

Fire engines, search and rescue vehicles, and hearses

Transportation-related Goods
27

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

28

Jet fuel to be used for both international and domestic flights

29

Airplane and helicopter engines, equipment, accessories, and parts
thereofIndustrial Goods
30

Bleaching substances (only those that use hydrochloride for bleaching);
raw materials to produce detergent, soap, heavy duty detergent /
soap.

31

Jute and other fibers; natural rubber latex; and tragacanth gum

Page 32

Commercial Tax-exempted Goods (cont.)
No.

Type of goods

32

Agricultural and livestock tools; agricultural and livestock machineryand equipment, and their spare parts; tractors; equipment used in
preparing land and harvesting, threshing, and drying together withhumans or animals or only through mechanical power; machines andspare parts (except for motor vehicles that are required to be licensed
as per the Motor Vehicle Law), various livestock equipment and tools,
machinery and spare parts used for livestock; semen (including frozen
semen), sperm, and eggs used for artificial insemination for livestock
improvement, embryos, and equipment for artificial insemination

33

Solar panels, solar charger controllers, and solar inverters

34

Raw materials or sub-assemblies or packaging materials for finishedgoods, machines, tools and machinery and their respective spareparts which were sent by clients from abroad for the purpose of
producing any finished goods on a Contract Manufacturing Process(CMP) basis

Defense-related Goods
35

Weapons, vehicles, machinery, materials, equipment and their spareparts used by defense and security forces of the Union; various typesof gunpowder, dynamite and any other materials for civilian purposes(only the products which are permitted by the office of Defense in
Chief (Army); goods and foodstuffs for the armed forces bought using
the allotted budget of the Ministry of Defense

Gemstones and Mineral Resources-related Goods
36

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 Union Government

37

Oil dregs

Miscellaneous Goods
38

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

Page 33

Commercial Tax-exempted Services (cont.)
No.

Type of goods

39

Goods to be used by foreign embassies or consulates and members
and staff 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.

40

Goods purchased locally or from foreign countries under the name of
the country offices of the United Nations organizations

41

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

42

Goods exempt from taxes as stated by the Pyidaungsu Hluttaw
because of State requirements

43

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

Page 34

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 by train,car, watercraft, airplane, and crane, except transport through pipelines)

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

17

Public toilet entrance fee collection services
Page 35

Commercial Tax-exempted Services (cont.)
No.

Type of service

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 grid yet

Miscellaneous Sector
30

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

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

32

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

Page 36

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 Bank ofMyanmar, Social Security Board, Region or State Government Offices,
government departments, etc. (except services provided to or received
by state-owned economic enterprises)

Page 37

Annex 4: Specific Goods Tax rates for local production andimportation
No.
1

(a)

Type of Specific goods

Price range

Tax rate

Cigarettes, all types

Up to a sales price of
MMK600 per pack of
20 cigarettes
For a sales price of
MMK601 to MMK800
per pack of 20
cigarettes
For a sales priceof MMK801 to
MMK1,000 per pack of
20 cigarettes
For a sales priceof MMK1,001 andabove per pack of 20
cigarettes

MMK9 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 38

Liquor, all types

MMK18 percigarette

MMK23 percigarette

MMK26 percigarette60%
60%
80Pyas per
cheroot80%80%80%
MMK200 to MMK1,000 MMK180 per
per liter
liter
MMK1,001 to
MMK449 per
MMK2,000 per liter
liter
MMK2,001 to MMK
MMK749 per
3,000 per liter
liter
MMK3,001 to
MMK1,049
MMK4,000 per liter
per liter
MMK4,001 to
MMK1,349
MMK5,000 per liter
per liter

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

Type of Specific goods

Price range(f)Liquor, all types(g)

Liquor, all types

MMK5,001 to
MMK6,000 per liter
MMK6,001 to MMK
7,000 per liter
MMK7,001 to MMK
8,000 per liter
MMK8,001 to MMK
9,000 per liter
MMK9,001 to MMK
10,000 per liter
MMK10,001 to MMK
11,000 per liter
MMK11,001 to MMK
12,000 per liter
MMK12,001 to MMK
13,000 per liter
MMK13,001 to MMK
14,000 per liter
MMK14,001 to MMK
15,000 per liter
MMK15,001 and above
per liter(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

MMK1,648
per liter
MMK1,948
per liter
MMK2,248
per liter
MMK2,548
per liter
MMK2,847
per liter
MMK3,147
per liter
MMK3,447
per liter
MMK3,747
per liter
MMK4,046
per liter
MMK4,346
per liter
60% of thevalue per liter
60%
Up to MMK750 per
MMK87 per
liter
liter
MMK751 to MMK1,500 MMK264 perper liter
liter
MMK1,501 to MMK
2,250 per liter
MMK2,251 to
MMK3,000 per liter

MMK438 per
liter
MMK615 per
liter
Page 39

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) 1501 CC to 2000 CC
vans, saloons, sedan
and Estate Wagon,
Coupe, except Double
Cab 4 Door Pickup(b) 2001 CC to 4000 CC
vans, saloons, sedan
and Estate Wagon,
Coupe, except Double
Cab 4 Door Pickup(c) 4001 CC and abovevans, saloons, sedan
and Estate Wagon,
Coupe, except Double
Cab 4 Door Pickup
Page 40

Price range

Tax rate

MMK3,001 to
MMK3,750 per liter
MMK3,751 to
MMK4,500 per liter
MMK4,501 to
MMK6,000 per liter
MMK6,001 to
MMK7,500 per liter
MMK7,501 to
MMK9,000 per liter
MMK9,001 to
MMK10,500 per liter
MMK10,501 to
MMK13,500 per liter
MMK13,501 to
MMK16,500 per liter
MMK16,501 and above
per liter

MMK791 perliter
MMK966 per
liter
MMK1,229
per liter
MMK1,580
per liter
MMK1,931
per liter
MMK2,282
per liter
MMK2,808
per liter
MMK3,510
per liter
50% of thevalue per liter
5%
10%

30%

50%

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

Type of Specific goods

13

Kerosene, gasoline, diesel,and jet fuelNatural gas

14

Price range

Tax rate
5%8%Page 41Annex 5: Specific Goods Tax rates for exportNo.
1

Specific Goods
Timber logs, wood cuttings

Page 42

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;

Proper Stamp‐duty

kyat 50

Subject to a maximum of kyat
10,000, kyat 25 for every kyat
100,000 or part thereof of thevalue of the security or share.
c. if relating to joint venture agreement,
One per centum on the
production or profit sharing contract,
amount or value of the subject
construction agreement or other similar matters. Provided that theagreement or contract;
maximum duty shall be Kyat
150,000.
d. if not otherwise provided for.
kyat 300
Exemptions
Agreement or memorandum of agreement:‐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 43

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 orpledge has been made by way of security
for the repayment of money advanced
or to be advanced by way of loan or an
existing or future debt :‐a. if such loan or debt is repayable on
demand or more than three months
from the date of the instrument
evidencing the agreement;

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.

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 on
instrument is chargeable does not the original.
exceed kyat 150;b. in any other case.
kyat 100
Page 44

Selected Stamp Duty Schedules (cont.)
Description of Instrument

Proper Stamp‐duty

Exemptions
Counterpart of any lease granted to acultivator when such lease is exempted fromduty.
LETTER OF CREDIT, that is to say, any kyat 200
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 45

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
exempted under No.62‐
to immovable property).
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%) for
charge on mortgaged property:‐a consideration equal to theamount 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 aconsideration equal to the total
amount of the charge (including
the original mortgage and any
further charge already made)less the duty already paid onsuch original mortgage andfurther 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 46

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 CONVEYANCE
be for any definite term;(No.23) (2%) for a consideration
equal to the amount or value ofthe average annual rent which
would be paid or delivered forthe first ten years if the lease
continued so long.
v. where the lease purports to be in The
same
duty
as
a
perpetuity;
CONVEYANCE (No.23) (2%) for aconsideration equal to the one‐
fifth of the whole amount of therents which would be paid ordelivered in respect of the first
fifty years of the lease.

Page 47

Selected Stamp Duty Schedules (cont.)
Description of Instrument

Proper Stamp‐duty

b. where the lease is granted for a fine or The same duty as a CONVEYANCE
premium or for money advanced and (No.23) (2%) for a consideration
where no rent is reserved;
equal to the amount or value ofsuch fine or premium or advanceas 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 nofine or premium or advance had
been paid or delivered. Provided
that, in any case when an
agreement to lease is stampedwith the ad valorem stamp
required for a lease, and a leasein pursuance of such agreement
is subsequently executed, theduty on such lease shall not
exceed kyat 300.
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.

Page 48

Selected Stamp Duty Schedules (cont.)
Description of Instrument

Proper Stamp‐duty

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 to immovable property)
for a consideration equal to theamount secured by such deed.
b. when possession is not given or agreed The same duty as a BOND
to be given as aforesaid;(No.15) (0.5%) for the amountsecured by such deed.
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 exceeding kyat 50
kyat 1,000,000; and-- for every kyat 100,000 or part kyat 50
thereof secured in excess of kyat
1,000,000.

Page 49

Selected Stamp Duty Schedules (cont.)
Description of Instrument

Proper Stamp‐duty

Exemptions
1. Instruments executed by persons taking
advances under the existing relevantLaws, or by their sureties as security forthe 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.

Promissory Note
Description of Instrument

Proper Stamp‐duty

PROMISSORY NOTE [as defined by section
2(22)]:‐
a. when payable on demand:‐i. when the amount or value does not kyat 50
exceed kyat 25,000;
ii. when the amount or value exceeds
kyat 25,000 but does not exceedkyat 100,000;

kyat 100iii. in any other case.

kyat 150

b. when payable otherwise than on
demand.

Page 50

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

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

Proper Stamp‐duty

TRANSFER ( whether with or without
consideration ):‐a. of shares in an incorporated company orother body corporate;

0.1 Per centum on the valueof 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:‐i. if the duty on such bond, mortgage
deed or policy does not exceed kyat
500;

The duty with which suchbond, mortgage‐deed or policyof insurance is chargeable.

ii. in any other case.

kyat 300

d. of any property under the Administrator
General’s Act, section 25;

kyat 300

e. of any trust ‐property without
consideration from one trustee toanother trustee or from a trustee to abeneficiary

300 kyat or such smaller
amount as may be chargeable
under clauses (a) to (c) of this
ArticleExemptions
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 documentof title to goods;
c. of a policy of insurance; (d) of securitiesof the Government of the Union of
Myanmar.
See also section 8.

Page 51

19

26

18

25

22

21

28

15

14

23

16

9

2

8

T

1

27

20

13

M

7

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February

1 2

24

17

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W

28

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6

5

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29

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2021

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1

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March

29

22

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F

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2021

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2020

25

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April

27

20

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6

S

26

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28

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29

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DecemberF

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NovemberWithin 3 months after the end of financial year

Annual Return for Income Tax

SWithin 3 months after the end of financial year

Annual Return for Commercial Tax

2020

Within 1 month after the end of each quarter

Quarterly Return for Commercial Tax

W

Within 10 days after the end of each quarter

Quarterly Return for Specific Goods Tax

TWithin 10 days after the end of each quarter

Quarterly Payment for Income Tax

MWithin 10 days after the end of each month

Monthly Payment for Commercial Tax

SWithin 10 days after the end of each month

Monthly Payment for Specific Goods Tax

October

Timeline to be complied withThe Processes to be complied by taxpayers

Tax Calendar (2020-2021)

30

23

16

9

2

F

25

18

11

4

F

24

17

10

3

S

2021

26

19

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5

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2020

24
31

30

17

10

3

M

25

18

1 1

4

M

23

16

9

2

S

May

24

17

10

3

31

S

January

5

25

18

11

4

T

26

19

12

T

26

19

12

5

W

27

20

13

6

W

27

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28

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29

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29

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2021

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14

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2021

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26

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25

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October

29

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1

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28

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November

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29

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30

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August

2021

W

S

T

M

June

T

Within 3 months after the end of financial year

Annual Return for Income Tax

W

Within 3 months after the end of financial year

Annual Return for Commercial Tax

TWithin 1 month after the end of each quarter

Quarterly Return for Commercial Tax

MWithin 10 days after the end of each quarter

Quarterly Return for Specific Goods Tax

SWithin 10 days after the end of each quarter

Quarterly Payment for Income Tax

July

Within 10 days after the end of each month

Monthly Payment for Commercial Tax

F

Within 10 days after the end of each month

Monthly Payment for Specific Goods Tax

TTimeline to be complied withThe Processes to be complied by taxpayers

Tax Calendar (2020-2021)

31

24

17

10

3

F

27

20

13

6

F

25

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4

S

2021

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2021

27

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23

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9

2

S

31

24

17

1 0

3

20

19

M

13

12

January

6

M

5

S

September

26

19

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5

W

29

22

15

27

20

13

6

T

30

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16

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2

1
8

T

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2022

25

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S

2021

Published by MOPFI.

25

18

11

4

T

28

21

14

7

T

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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