Explore the requirements and rules that apply to indirect taxes in Myanmar.
Generally, a 5 percent standard rate applies to most products and services. Commercial tax on certain items (such as inbound air travel, real estate, gold jewelry and electricity) ranges from 1 percent to 8 percent.
What supplies are liable to the standard rate?
Goods and services supplied in Myanmar and the importation of goods from abroad, with the exception of those mentioned above.
Are there any reduced rates, zero- rates or exemptions and if so, what do they apply to?
There are certain products, including basic food and medicines that are exempt. In addition, certain services, such as contract manufacturing, educational services, financial services and public transportation, are also exempt. Exports of goods are generally zero-rated.
Anyone (personal, self-employed and company) carrying out production/manufacturing and services in the jurisdiction and importing goods into the jurisdiction. Sales below 50 million Myanmar Kyat (MMK) per year would not be subject to commercial tax.
Is voluntary registration possible?
Is voluntary registration available for an overseas company or a fiscal representative?
Capital items and certain restricted items.
Can an overseas company recover commercial tax if it is not registered?
How long does it typically take to obtain a commercial tax refund following a return filing?
Input commercial tax in excess of output commercial tax will not be refundable.
According to Notification 104/2012 commercial tax rules, invoices should contain the following information:
* By ‘grouping’ we mean: either a consolidation mechanism between taxpayers belonging to the same group (payment and refund are compensated but taxpayers remain distinct) or a fiscal unity for VAT/GST purposes (several taxpayers are regarded as a single taxpayer).
All information within this guide is provided by KPMG professionals in Myanmar and based on information available as of September 2019.