Knowledge Highlights 22 February 2022

On 6 January 2022, the Myanmar State Administration Council (“SAC”) issued SAC Law No. 1/2022 titled Law Amending the Union Tax Law 2021 (“Law”). It amends section 14(e) of the Union Tax Law and will be in effect from 8 January 2022 to 31 March 2022.

The Law amends section 14 to raise the commercial taxes on Internet services from 5% to 15%. It also stipulates that 5% commercial tax shall be levied on income derived from services operated at home, with the exception of services set out in section 14(d) and (e-1). A one-off commercial tax of MMK20,000 will also be imposed in relation to the sale or activation of SIM cards.

Section 25(a) of the Law is also amended to substitute the table therein which sets out the income tax rate to be levied on income whose source is undetermined. No income tax shall be levied where the source can be determined for all income. The levy under this section shall not apply to the possession or trade of properties obtained illegally or actions taken under the Anti-money Laundering Law.

No

Income (Kyat)

From (minimum)

To (maximum)

New maximum

Income tax rate

(a)

1

100,000,000

300,000,000

3%

(b)

100,000,001

300,000,000

600,000,000

5%

(c)

300,000,001

1,000,000,000

Unchanged

10%

(d)

1,000,000,001

3,000,000,000

Unchanged

15%

(e)

3,000,000,001

and above

Unchanged

30%

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