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Myanmar: Calculating individual income tax, short financial year-end 30 September 2019

Myanmar: Calculating individual income tax

The Internal Revenue Department (IRD) issued guidance (directive 20/2019, dated 4 September 2019) concerning the calculation of taxable income by individual taxpayers for the “short” financial year ending 30 September 2019.


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The Ministry of Finance and Planning issued guidance (notification 64/2019) that sets forth procedures for taxpayers to follow in determining how certain taxes—such as the specific goods taxes, commercial tax, and income tax—are to be calculated for the short financial year ending 30 September 2019. Read TaxNewsFlash

The guidance from the Ministry of Finance and Planning stated that taxpayers were expected to double all income received during the six-month period in order to arrive at the taxable income before applying the tax rates. Thus, the amount of tax payable (under this process) would then be halved.

IRD guidance

Directive 20/2019 (released by the Internal Revenue Department on 4 September 2019) clarifies that only the amount of monthly salary is to be annualised—that is, only the actual amounts received without considering certain other income received (e.g., from annual benefits, bonuses, and rewards) are to be included in the amount of taxable income. Such one-off payments are not to be annualised.

Read a September 2019 report prepared by the KPMG member firm in Myanmar

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