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| (VI) TAXATION |
| (1) CORPORATE
TAX |
| Corporations incorporated in Myanmar are treated
as resident and taxed at the rate of 30% on income accruing
or arising in Myanmar and outside of Myanmar. |
(2) COMMERCIAL
TAX (Value added Tax) |
| Commercial Tax is payable on goods, imported or
produced in Myanmar, trading sales, and services ranging from
0%-200%. |
(3) WITHHOLDING
TAX |
Withholding tax rates are dependent on the types of payments
(interest, royalties, and payment for the work done under different
kinds of organisations), and could range from 3.5 % to 15 %.
There is no withholding tax on dividends.
Payments on income such as interests, royalties, and on contracts
are subject to the different following rates of withholding
tax:
• Interests:
- For resident
citizens and resident foreigners= 15%
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For non-resident foreigners= 20%
• Royalties for
the use of license, trade marks, patent rights, etc.:
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For resident citizens and resident foreigners= 15%
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For non-resident foreigners= 20%
• Payment on contracts
undertaken by State organisations, development committees and
cooperative societies:
- For resident
citizens and resident foreigners= 3%
-
For non-resident foreigners= 3.5%
• Payment for work
done to foreign contractor:
- For resident
citizens and resident foreigners= 2.5%
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For non-resident foreigners= 3%
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| (4) PERSONAL
INCOME TAX |
A non-resident's salary is taxed at the rate of 35%. Other income
is taxed at the minimum rate of 35% or at the resident rates,
graduating from 3% to 50%.
A foreigner staying in Myanmar for 183 days or more is considered
a resident foreigner. Both resident foreigners and resident
citizens are taxed on salaries based on progressive scale,
starting at 3% and rising to a maximum rate of 30%. A non-resident
foreigner is subject to tax on income derived from every source
within Myanmar, at the flat rate of 35%, or at progressive
rates ranging from 3% to 50%, whichever is greater.
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