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.


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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

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