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Corporate tax
The corporate tax rate in Myanmar is 25% for:
- companies incorporated under the Myanmar Companies Law;
- Foreign companies registered with DICA as overseas corporations.
- file financial statements annually.
Withholding Taxes
Withholding taxes for payments made to non-resident persons or entities are:
- 2.5% for goods and services;
- 15% for interest and royalty payments.
The payor is required to deduct the applicable withholding tax from the amount payable to the payee, whether or not agreed to by the latter, and remit the tax to the Internal Revenue Department.
Myanmar has entered into Double Taxation Avoidance Agreements (DTAs) with India, Malaysia, Singapore, South Korea, Thailand, the UK, Vietnam, and Laos. These DTAs are particularly relevant for royalty payments, as the withholding tax rates are reduced or exempted, as applicable. The Myanmar government is considering abolishing withholding taxes, but the decision has yet to be formalized.
Concluding Remarks
With the liberalization of Myanmar’s economy, foreign companies should seize the opportunity to be one of the early movers into Myanmar.
Myanmar is currently still undeveloped, Managedline business consultancy has a deep understanding of the regulatory and business environment in Myanmar. We are well equipped to assist clients with complex legal matters across a wide range of disciplines.
The latest media news about Myanmar: Economics
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