Income tax rate in Myanmar 2023 & income tax calculator

Are you aware of the 2023 income tax rate in Myanmar? It is very important to know the income tax rate as a citizen of a particular country. This will help notify you when there is an adjustment to the union tax law.

Under the Myanmar income tax Act, resident nationals and foreigners are taxed on their worldwide income while non-resident foreigners are taxed only on income derived from sources within Myanmar.

What are taxes in Myanmar? How is income tax on salary calculated? Is Myanmar tax free? What is the rate of tax on salary?

For foreigners working for Union of Myanmar Foreign Investment Law (MFIL) or Myanmar Investment Law (MIL) companies may be taxed at the same tax rates as a tax resident, regardless of their period of stay in Myanmar, under the tax incentives that may be granted to the MFIL/MIL companies.

Income Tax Rate in Myanmar 2023

Under the Myanmar union tax law, these are the tax rates:

  • Income Tax Rate: 3% – 50%
  • Corporate Tax Rate: 30%
  • Sales Tax / Service Rate: 0% – 200%
  • Withholding Tax: 3.5% – 15%

Personal Income Tax Rate in Myanmar

As a citizen of Myanmar, have you ever wondered how your Personal Income Tax Rate is derived? Personal Income Tax Rate in Myanmar is a tax collected from individuals and is imposed on different sources of income such as labor, pensions, interest and dividends.

The government of Myanmar uses revenues from the Personal Income Tax Rate as an important source of income.


How personal income tax is derived in Myanmar

Here is a breakdown of how personal income tax in Myanmar is derived for residents, foreigners in Myanmar and non resident foreigners:

  • In Myanmar, individual income is taxed at the progressive rates ranging from 3% – 50%
  • If a Foreigner stays in Myanmar for 183 days or more, he or she is considered a tax resident and will be taxed at the progressive rates between 3% – 30%
  • Non-resident foreigners are taxed at a flat rate of 35% or at the progressive rates mentioned above, whichever is greater.

Corporate Tax for Myanmar

Corporate tax rate for residents and non residents in Myanmar is 30% and this isĀ  charged on the income derived from sources in Myanmar and foreign-sources outside Myanmar.

Withholding tax for Myanmar

Payment on income is subject to withholding tax at various rates ranging from 3.5% to 15%

Do companies in Myanmar pay Tax?

In Myanmar, Companies resident are subject to income tax on their worldwide income. However, non- resident companies are taxed only on income accrued or derived in Myanmar.

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