Myanmar: Changes to commercial tax, income tax for 2019-2020
Myanmar: Changes to commercial tax, income tax
The Ministry of Planning, Finance and Industry announced the release of guidance amending the commercial tax and income tax rules for the 2019-2020 tax period.
Notification 56/2020 removes application of section 42(d) of the commercial tax regulations for fiscal year 2019-2020. Section 42(d) provided that the input commercial tax incurred on capital assets would not be available for offset against output commercial tax due. Thus, with the removal of section 42(d), the input commercial tax incurred on capital asset can be offset against the amount of output commercial tax due on the business activities.
Notification 62/2020 amends sections 11, 13 and 14 of the income tax regulations for the 2019-2020 fiscal year, and thereby resulting in the following changes:
- Assessments can be undertaken by township tax offices, the “medium taxpayer” office or the large taxpayer” office.
- The rate of depreciation of capital items not listed under previous regulations is 5%, and intangible assets and low-valued capital asset depreciation rates will be set by additional announcements (not yet released).
- The due date for remitting tax payments for individual (personal) income tax, withholding tax, and submitting certain information to the Internal Revenue Department is extended to 15 days (previously seven days).
Read a July 2020 report prepared by the KPMG member firm in Myanmar
© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.