Myanmar: Withholding tax exemption, payments for services rendered by nonresidents

Myanmar: Withholding tax exemption, services rendered

The tax authority issued guidance concerning when an exemption from withholding tax applies with regard to payments for services rendered outside of Myanmar, or for services rendered within Myanmar by nonresidents from a country having an income tax treaty for the avoidance of double taxation with Myanmar.


The guidance—practice note No. 2/2020 (3 September 2020)—provides that when making payments to a non-resident for services rendered outside Myanmar, taxpayers need to apply to the tax authority and present documentary evidence to substantiate that the services were rendered outside Myanmar so that the tax authority can issue an approval that the payment is not subject to withholding tax in Myanmar.

The guidance allows for certain taxpayer self-assessments, and requires a return to be filed reflecting that the payment is not subject to Myanmar withholding tax. This treatment may apply if the transaction or contract value is less than U.S. $100,000.

In instances when the service provider is located in a tax treaty-partner country, the taxpayer must determine that certain conditions are satisfied (i.e., eligibility under the self-assessment system, a contract value less than U.S. $100,000, and no permanent establishment of the service provider in Myanmar).

Read a November 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

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.

Connect with us