A. A. Corporate
Corporate - Taxes on corporate income
Foreign investors may register their companies under the
Myanmar Companies Act (CA) or in conjunction with the Myanmar Investment
Law (MIL) or Myanmar Special Economic Zone Law (Myanmar SEZ Law). The new
MIL 2016 was enacted on 18 October 2016. The new MIL is a consolidation of the
Myanmar Citizen Investment Law (2013) and the Myanmar Foreign Investment Law
(MFIL) (2012). The Myanmar Citizen Investment Law and MFIL have been repealed
with effect from 18 October 2016. New rules governing the implementation of the
new MIL were enacted on 30 March 2017. Investment permits issued under the old
investment laws continue to be valid.
The differences between companies registered under the CA
and the Myanmar Investment Commission (MIC)/SEZ are in relation to their
eligibility for tax incentives and longer land use terms, as well as minimum
foreign share capital requirements.
Generally, resident companies are taxed on a worldwide
basis, and, as such, income from sources outside Myanmar is taxable.
Non-resident companies are taxed only on income derived from
sources within Myanmar. Income received from any capital assets within Myanmar
and from any source of income within Myanmar is deemed to be income received
within Myanmar. The income is generally subject to tax under the normal rules
A company registered under the MIC/SEZ is entitled to enjoy
certain exemptions and relief from taxes.
Type of taxpayer
Tax rate (%)
in Myanmar under the Myanmar CA or Special Companies Act
operating under the MIC or SEZ
foreign organisations registered under the Myanmar CA or Special Companies
Act, such as a branch of a foreign company
Commercial tax, at rates ranging from 0% to 8%, is levied as
a turnover tax on goods and services. Generally, commercial tax is imposed at
the rate of 5%. The commercial tax that a business charges and collects is
known as output tax, which has to be paid to the Myanmar tax authorities.
Commercial tax incurred on business purchases and expenses are known as input
tax. Businesses that are registered for commercial tax can claim commercial
input tax if certain conditions are satisfied.
Commercial tax is imposed on a wide range of specified goods
and services produced or rendered within the country, based on the sales
proceeds, and on imported goods (see Customs duties below for details).
All services are subject to 5% commercial tax except for 29
types of services that are specifically exempt from commercial tax (e.g. life
insurance, banking and financial services that are operated with the permission
of the Central Bank of Myanmar, microfinance, public transportation).
No commercial tax is imposed if the proceeds from production
and sales of goods, receipts from services, or proceeds from trading for a
financial year are not more than 50 million Myanmar kyats (MMK) (the exemption
threshold was MMK 20 million prior to 1 April 2017).
Commercial tax is zero-rated on all exports, except for
electricity (8%) and crude oil (5%).
Companies registered under the MIC/SEZ may, at the
discretion of the MIC/SEZ Committee, be granted exemption from commercial tax
during certain stipulated periods