The Ministry of Planning and Finance (“MoPF”) has previously announced the change in the financial year end to 30 September of each year. As such, the period of 1 April 2019 till 30 September 2019 will be a short 6 months financial year. Accordingly, on 5 August 2019, the MoPF announced the notification 64/2019 which states procedures which would impact how each of the following taxes would be calculated for the above mentioned period:-
Tax payers are expected to double their revenue to assess if they will breach the threshold of MMK 20 million. If so, then the tax payers will need to comply with SGT requirements and pay accordingly.
Do note that a similar test will be applied for CT except that the threshold is MMK 50 million.
Do note that this does not take into account seasonality and will be a simple doubling of revenue for the 6 month period. As such, some tax payers previously not crossing the respective thresholds for a full year may be required to comply with these taxes during this 6 month period and pay accordingly. The IRD is aware of this issue and is looking into this.
There are multiple changes pertaining to IT. We have highlighted some issues that we have highlighted to the IRD which are pending solutions :-
We have highlighted these issues to the IRD and understand that they will look into providing clarifications before the year end filings are due. Please continue to watch this space for updates on these issues.
KPMG can assist in managing your tax compliance needs whilst operating in Myanmar including corporate tax, personal income tax, commercial tax and withholding tax filings. KPMG has extensive experience in assisting clients submit applications to the IRD to obtain clarifications and decisions for businesses investing in Myanmar.
Please feel free to reach out to our tax professionals to discuss how these changes would impact your businesses.
KPMG Myanmar Tax Alert highlight the latest tax and regulatory developments, impending changes to law or regulations, current practices and potential problem areas that may impact your company. As certain issues discussed herein are time sensitive, it is advisable to make your plans accordingly.