3 November 2023

On 12 September 2023, Myanmar’s State Administration Council issued the Law Amending the Union Tax Law 2023 (“Amended UTL 2023”) which will be in effect from 1 October 2023 to 31 March 2024.

The Amended UTL 2023 imposes income tax liability on the earnings of non-resident Myanmar citizens abroad, including salaries, that is payable in the same currency as the income received. The income tax payable on salary in these circumstances can be calculated according to whichever of the following stipulated methods yields the lowest amount of tax payable:

  • The applicable salary income tax (0% to 25%) after deduction of any allowances for the respective financial year; or
  • A 2% tax on salary without deducting tax relief provided under sections 6 and 6-A of the Income Tax Law.

Taxpayers may also subtract the amount of foreign taxes paid from the total tax calculated using either of the methods set out above.

In addition, citizens must pay 10% tax on their total income earned abroad other than salaries. This includes income derived from profession, business, property rental, capital gains, undisclosed sources of income, and other sources of income. This tax liability does not attract the tax relief under sections 6 and 6-A of the Income Tax Law.