Myanmar: Tax developments in response to COVID-19
General Information
This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).
The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.
Date accurate as of: 10 June 2020
Business income tax
- The Ministry of Planning, Finance and Industry (“MoPFI”) announced on March 18, 2020 that tax assistance will be provided for SMEs, Hotel and Tourism and CMP companies. Payments of income and commercial tax for quarters ending March 31, 2020 and June 30, 2020 will be extended to September 30, 2020.
- MoPFI also plans to provide a 10% non-refundable tax credit on the incremental wage bill and incremental investments on capital requirements.
- In addition, a deduction equal to 125% of wages paid and a one-time increase in depreciation equal to 125% of current year depreciation will be allowed.
Export taxes
- The Myanmar government announced on March 17, 2020 that the advance income tax of 2.0% on exports will be waived until the end of the fiscal year on September 30, 2020.
Tax credit
- A 10% non-refundable tax credit with regard to incremental wage bills.
- A 10% non-refundable tax credit for incremental investment in capital goods.
Hotel and tourism
The Ministry of Hotels and Tourism announced on April 21 that the government will defer land lease payments for six months for 47 state-owned and private hotels to ease pressure from COVID-19.
