On 1^st October 2021, the Ministry of Planning and Finance (“MOPF”) issued its Notification No. 510/2021 on procedures for assessments of specific goods tax (“SGT”), commercial tax (“CT”), personal income tax (“PIT”), corporate income tax (“CIT”) and capital gains tax (“CGT”) for the transitional period of six months from 1^st October 2021 to 31^st March 2022.  The major provisions of this notification are summarized below.

1.   A taxpayer whose total income from local production and sale of tobacco leaf, cheroots and cigars is reduplicated and exceeds MMK 20 million during the transitional period is subject to the SGT under the Special Goods Tax Law 2016 and the Union Tax Law 2021(“UTL”).

2.   A taxpayer whose total income from sales or services is reduplicated and exceeds MMK 50 million during the transitional period is subject to the CT under the Commercial Tax Law 1999 and the UTL.

3.   A taxpayer whose salary exceeds MMK 4.8 million during the transitional period is subject to the 50% PIT.

4.   A taxpayer whose income is from professional, business, or other source are entitled to deduct the actual expenses from the total income and the remaining amount will be reduplicated.  The 50% PIT will apply.

5.   For income derived from businesses, companies, and cooperatives doing business with a MIC permit, the CIT are calculated from the total income after deduction of actual expenses and depreciation.  The depreciation will be calculated and deducted for 6 months.

6.   Income from a sale or transfer of capital assets more than MMK 10 million is subject to the CGT.

7.   Income from an undisclosed source, including the value of property and expenses, during the transitional period, is a payable/taxable income.

8.   If the first 3 years of operation of an SME fall within the transitional period, its total income will be reduplicated.  The 50% CIT will apply if its total income is more than MMK10 million.

9.   A foreign individual residing in Myanmar for a period of more than 183 days during the transitional period is subject to the PIT as if he/she were a resident foreigner.

10.   The total income from the salary of non-resident foreigner is calculated at the rate specified under the UTL without any deduction and it will be reduplicated.  The 50% PIT will apply.

11.   The annual tax return for the CT, the PIT and the CIT during the transitional period must be submitted with the relevant tax authorities within 3 months from the end of the transitional period.

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