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Myanmar: Advance income tax for imports, exports; other trade-related items

Myanmar: Advance income tax for imports, exports

Revisions in 2019 to the advance income tax system in Myanmar removed exemptions for taxpayers under the jurisdiction of the “large taxpayers’ office” and the “medium taxpayers’ office” sections of the tax authority.


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The advance income tax system has been revised several times over the years.

  • In 2013, a 2% advance income tax was imposed on all imports and exports, with exemptions for certain products, including imports and exports by government departments and state-owned enterprises; imports of certain vehicles by persons; imports by companies approved by the Myanmar Investment Commission; imports of fire engines, ambulances, and hearses; imports of raw materials for “cut-make-pack businesses”; and goods imported under a draw-back and temporary importation system. These advance taxes are creditable against a company’s annual corporate income tax liability.
  • In 2018, an exemption for advance income tax was provided in Notification No. 7/2018 for companies subject to the jurisdiction of the “large taxpayers’ office” and “medium taxpayers’ office” sections of the tax authority.
  • In 2019, guidance in Notification No. 38/2019 removed the exemptions from advance income tax for companies subject to the jurisdiction of the “large taxpayers’ office” and “medium taxpayers’ office” sections of the tax authority.

Other import/export-related items concern:

  • Companies engaged in the importation (trading) of fertilizer, seeds, pesticides, hospital equipment, construction materials and equipment, and machinery for agriculture are required to obtain an export/import registration certificate for these products (and thus, import permissions granted under prior notifications have been superseded).
  • Companies must apply for registration as a wholesaler or retailer, and the requirements must be fulfilled within five years after registration as a wholesaler or retailer.
  • Amendments to the “import negative list” provides that there are 234 tariff lines or classifications from the prior version of the negative export list that do not require an import license (in other words, products in these 234 tariff lines can be imported without import licensing). However, there are 29 tariff lines that were previously not on the list, but now that are included in the updated import negative list. As a result, there are currently 4,613 product lines in the current import negative list as provided in Notification No. 22/2019. Those entities involved in importing products under the 29 tariff lines that were transferred to the import negative list from the list of non-licensing requirements were required to apply for an import license.
  • Foreign entities and individuals have been granted permission to invest in and trade the shares of companies listed on the Yangon Stock Exchange (YSX). While guidance is pending, it is believed that foreign ownership of YSX listed companies would be limited to a ceiling of 35% because the Myanmar Companies Law of 2017 classifies an entity as “foreign” if more than 35% of its equity is owned by foreign shareholders. There are numerous commercial restrictions are imposed on a foreign company.


For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094

Irina Vaysfeld
T: 212-872-2973

Amie Ahanchian
Managing Director
T: 202-533-3247

Robert Waldrop
T: 212-954-8117

Gisele Belotto
Managing Director
T: 305-913-2779

Christopher Young
T: 312-665-3229

Andy Doornaert
Managing Director
T: 313-230-3080

George Zaharatos
T: 404-222-3292

Jessica Libby
Managing Director
T: 612-305-5533


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