Tax
22 percent corporate rate and a commercial tax rather than a full VAT
The Income Tax Law taxes companies at 22 percent following the 2023 reduction from 25 percent. Myanmar has no value added tax; commercial tax at 5 percent applies to goods and services, with higher special goods rates.
Key rules
- Jurisdiction — The Internal Revenue Department administers taxes, with a Large Taxpayers Office. The Union Taxation Law is re-enacted annually and changes rates and thresholds.
Governing law
- Income Tax Law1974, as amended
- Commercial Tax Law1990, as amended
- Union Taxation Lawannual
In practice
Because commercial tax is not a credit-invoice VAT, it cascades through supply chains and is an absolute cost rather than a recoverable input, which distorts pricing for multi-stage production. Residents are taxed on worldwide income and non-residents on Myanmar-source income; personal rates are progressive to 25 percent. Capital gains are taxed separately at 10 percent, and at up to 40 to 50 percent for oil and gas. Investment incentives include income tax exemptions of three, five or seven years depending on the development zone of the project. Withholding taxes apply to interest, royalties and certain payments to non-residents. Banking restrictions since 2021 complicate payment of tax from abroad.