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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= -
   - For non-resident foreigners= 15%
• Royalties for the use of license, trade marks, patent rights, etc.:
   - For resident citizens and resident foreigners= 15%
   - For non-resident foreigners= 20%
• Payments made by the State organizations, Development Committees, Cooperatives Societies, Partership Firms, Companies, Organizations formed and registered under any existing law, for purchasing of goods locally and receiving services under a contract or an agreement or any consent:
   - For resident citizens and resident foreigners= 2%
   - For non-resident foreigners= 3.5%
• Payments made by foreign entrepreneur or foreign company, for receiving services and purchasing of goods locally under a contract or an agreement or any consent:
   - For resident citizens and resident foreigners= 2%
   - For non-resident foreigners= 3.5%

(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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