5 May 2023

On 30 March 2023, the Myanmar State Administration Council enacted the 2023 Union Tax Law (“UTL”) which came into effect on 1 April 2023, the start of the financial year in Myanmar.

This Article sets out some of the key changes brought about by the UTL.

Income tax

The main change in the UTL is an increase in the income tax exemption threshold. The UTL provides that the exemption on annual net income for new start-up, micro, small or medium-sized companies, cottage industries, and small-scale industries (based on local production) has been increased from MMK10 million to MMK15 million per year for three consecutive years, including the year business commenced.

There have been no changes made to the general corporate income tax rates which remain as follows:


Type of Company



General rate



Listed on Yangon Stock Exchange



In the oil and gas exploration and production sector


Companies in the oil and gas exploration and production sector are now not permitted to deduct the relevant statutory deductible items under the Income Tax Law in computing their taxable income.  

Commercial tax

The general commercial tax rate remains at 5% with certain exceptions as set out in the UTL. These exceptions include internet services (which attract a commercial tax rate of 15%) and hotel and tourism service (which attracts a commercial tax rate of 3%).

The UTL amends the list of goods and services exempt from commercial tax, with the most significant amendments being the addition of battery electric vehicles (“BEV”) and photovoltaic (“PV”) goods and services, specifically:

  • PV modules, solar modules, PV panels, solar panels, solar panels 92 watt CIGS (copper indium gallium selenide), PV/solar (hybrid/smart array) controllers, charge controllers for PV/solar, PV/solar inverters (string, hybrid, battery, bidirectional, or central), home installation models (roof and ground mounted), PV/solar mounted structures, PV/solar mounted frames, solar PV mounted kits (roof and ground mounted), PV/solar mounted systems (floating), PV/solar controllers and battery boxes;
  • Battery electric tricycles, BEVs, including two-wheelers, their batteries, and accessories used exclusively for BEVs; and
  • Battery charging services for BEVs.

Other amendments

Diamonds and emeralds are no longer exempt from the Gemstone Tax. The rate applied will vary according to the type of gem, and whether they are sold as a raw stone or as finished jewellery. Additionally, the specific goods tax for liquor has been increased.