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Myanmar NewsI. Notification2/2017on
Withholding Tax
II. UnionTaxLaw,2017
III. DraftLawAmendingtheSpecialGoods Tax Law
IV. Notification6/2017on Import of Goods
March2017
Table of ContentI.Notification2/2017onWithholdingTax
II.UnionTaxLaw,2017
III. Draft Law Amending the SpecialGoodsTaxLaw
IV.Notification6/2017on“Procedures forlegalactionagainstimportsin contraventionoflicense,specifications”
AnnexI-UnofficialEnglishTranslation
AnnexII-UnofficialEnglishTranslation
AnnexIII-UnofficialEnglishTranslation
AnnexIV-UnofficialEnglishTranslation
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I.Notification2/2017onWithholding TaxOn10January2017,theMinistryofPlanningandFinanceis-suedNotification2/2017withupdatedratesandregulationsinrespectofwithholdingtaxoninterestpayments,royaltiesfortheuseof licenses, trademarksandpatent rights,andpay-mentsforthepurchaseofgoods,servicesperformedandtheleasing/hiringofproperty.Theapplicablewithholdingtaxshallbe withheld, filed and paid – regardless of whether the pay-mentrecipienthasagreedtothedeductionornot–inMyan-marKyatsincaseofpaymentstoresidentcitizensorresidentforeignersandinthepaymentcurrencyincaseofpaymentstonon-residents.
Notification2/2017,whichclarifiespreviouambiguitiesontheapplicationofwithholdingtaxtopaymentsforoffshoreservicesandleaseagreements,willcomeintoeffecton1April2017.ItsupersedesNotification41/2010dated10March2010andNo-tification167/2011dated26August2011.
1.InterestPayments
PursuanttoNotification2/2017,interestpaymenttonon-resi-dentforeignersforaloanorindebtednessoratransactionofsimilarnaturearesubjectto15%withholdingtax.Nowithhold-ingtaxappliestointerestpaymentsmadetoresidentcitizensand resident foreigners.
2.Royalties
Paymentsfortheuseoflicenses,trademarks,patentrightsandotherroyaltypaymentstonon-residentforeignersaresubjectto15%withholdingtax;royaltypaymentstoresidentcitizensandresidentforeignersaresubjectto10%withholdingtax.
3.Purchases/Services
Paymentsforthepurchaseofgoods,workperformedorsupplyofserviceswithinthecountryunderatender,contract,quota-tionorothermodestoresidentcitizensandresidentforeignersaresubjectto2%withholdingtax;paymentstonon-residentforeignersaresubjecttowithholdingtaxof2.5%.
Itshouldbenoted,thatpursuanttotheinternalpoliciesoftheInternalRevenueDepartment,individualsmakingpaymentsfor
thepurchaseofgoodsandservicesshallnotberequiredtowithholdtaxesfromsuchpayments.
Further, the internal policies provide, that the assessmentwhetheraserviceorprocurementisdeemedtobemadewith-inthecountryorprocuredfromabroadistobemadebytheDi-rector-GeneraloftheoftheInternalRevenueDepartment.
4.Lease/Rental/Hiring
Previously, itwasunclearwhetherrentalpaymentsaresub-jecttowithholdingtax.PursuanttotheNotification2/2017,pay-mentsfor“leasing/hiring arrangements within the country un-der a (…) contract”shallbesubjecttowithholdingtaxatarateof2%forpaymentstoresidentcitizensandresidentforeigners,and2.5%forpaymentstonon-residentforeigners.Uponenqui-rywiththeInternalRevenueDepartment,itwasverballycon-firmedthatthisdefinitionincludesrentalpaymentsfor(residen-tial) premises within Myanmar.
It shouldbenoted, thatpursuant to the internalpoliciesofthe InternalRevenueDepartment, individualsmaking rent-al payments shall not be required to withhold taxes fromsuchpayments.
Further, the internal policies provide, that the assessmentwhether a lease or rental is deemed to be made within the countryorprocuredfromabroadistobemadebytheDirector-GeneraloftheoftheInternalRevenueDepartment.
5.ExemptionsfromWithholdingTax
No withholding tax shall be imposed on:
■ PaymentsbetweengovernmentorganizationsandpaymentstogovernmentbodiesandState-ownedEnterprises;and
■ Interestpaymentstoanon-residentforeigner/foreignownedcompanyforaloanorindebtednessoratransactionofsim-ilarnature,ifthenon-residentforeigner/foreignownedcom-panyprovidestheloanthroughabranchofficewithinMyan-marandundergoestaxassessmentdomestically.
6.MinimumThreshold
If thetotalcumulativeamountofallpaymentstoarecipientwithinafinancialyeardoesnotexceedMMK500,000,nowith-
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holdingtaxshallbeimposed.Kindlynote,however,thatalistofallsuchpaymentswhichdonotexceedtheprescribedthresh-oldshallbesubmittedtotherelevanttaxoffice.
7.Tax-ExemptedPaymentRecipients
PursuanttotheinternalpoliciesoftheInternalRevenueDe-partment,enterprisesexemptedfromincometax,e.g.pursuanttotheMyanmarInvestmentLaw,2017ortheSpecialEconom-icZoneLaw,2014,shallapplyforconfirmationofsuchtaxex-emptionwiththeInternalRevenueDepartment.
8.DoubleTaxationAgreement
Ifanon-residentrecipientisaresidentofacountrywithwhichMyanmarhasenteredintoaDoubleTaxAgreement,andsuchrecipientisabletoprovideaCertificateofResidencyissuedbythetaxauthorityofsuchcountryofresidence,withholdingtaxshallbeprocessedattherateprescribedinsuchtaxtreaty.
Myanmarhassofarsignedeight(8)DoubleTaxAgreements,anditshouldbenoted,thatnotallofthemprovideforafullex-emption,e.g.forpaymentsforservicesprovided:
■ United Kingdom■ SocialistRepublicofVietnam■ RepublicofKorea■ Malaysia■ RepublicofIndia■ RepublicofSingapore■ LaoPeoples’DemocraticRepublic■ Thailand.
TheinternalpoliciesoftheInternalRevenueDepartmentpro-vide in thisregard, thatanapplicationshallbemade inad-vance,togetherwiththeCertificateofResidenceand,incaseofbusinessincome,sufficientinformationtoestablishthattherecipientofthepaymentdoesnotmaintainapermanentestab-lishmentwithinthecountry.
CommentLuther: For more information on the application pro-cess, please do not hesitate to contact us.
9.PaymentofWithholdingTax
Anypersonorenterprisedeductingwithholdingtaxshallfileandpaythewithholdingtaxwithinseven(7)daysfromsuch
payment.Inpractice,thetaxauthoritiesdohoweverallowpay-ment on a monthly basis.
Whilewithholding taxonpayments to residentcitizensandresidentforeignersmaybesetoffagainsttheannualtaxob-ligations, the withholding tax is final for non-resident foreign-ers,providedthatitmaybeoffsetifsuchnon-residentforeign-ersmaintainabranchofficeinMyanmarandundergodomestictax assessment.
The internal policies further elaborate on the processas follows:
■ Incaseofpaymentstoresidentcitizensandresidentforeign-ers,withholdingtaxshallbedeductedandpaidinMMK.Incaseofpaymentstonon-residentforeigners,withholdingtaxshallbedeductedandpaidinthecurrencyofthepayment.
■ WithholdingtaxshallbedepositedtothebankaccountoftherelevantRevenueOfficewithinseven(7)daysfromthedayof deduction. In caseof governmental organization,withholding tax, shall be deposited on the same day of the deduction.
■ Thebankdepositslipshouldstatethenameoftheperson/company/enterpriseliabletopaythewithholdingtax(i.e.thepaymentrecipient,notthepersondeducting,filingandpay-ing the tax).
■ For payment, Form PaTaKha(WaNga)17 shall be used,whichmaybeobtainedfromtherelevantRevenueOfficeordownloadedfromwww.irdmyanmar.gov.mm,andpreparedintriplicatewiththenecessaryparticularssuchasthename,address of the person/company fromwhomwithholdingTaxwasdeducted,thetransactionconcernedandthede-partment/organizationmakingthepaymentdulycompleted.Withinseven(7)daysofdeduction,copiesshallbesenttotherelevantRevenueOfficeandtotherecipientfromwhomwithholdingtaxwasdeducted,withonecopytoberetainedby the payer.
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II.UnionTaxLaw,2017Since2014,theparliamentannounceschangestoincometax,CommercialTaxandSpecialGoodsTaxonanannualbasis.On25January2017,theparliamentenactedUnionTaxLaw,2017,comingintoforceon1April2017(i.e.withthebeginningofthefinancialyear2017/18).
PleasefindbelowasummaryofthemostimportantchangesintroducedbytheUnionTaxLaw,2017.
1.IncomeTax
1.1.CorporateIncomeTax
Therateofcorporateincometaxremainsunchangedat25%underthenewUnionTaxLaw,2017.
NewlyestablishedsmallormediumenterprisesshallnotpayincometaxonnetprofitsnotexceedingMMK10,000,000dur-ingthefirstthree(3)consecutiveyearsincludingtheyearofcommencementofbusiness.Smallandmediumenterpriseswithhigherprofitsshallbetaxedonlyontheprofitexceedingthe said threshold.
1.2.PersonalIncomeTax
Similarly,nomajorchangeshavebeenannouncedforthetax-ationofindividuals,withpersonalincometaxratesremainingunchangedat0%-25%withapersonalbasicreliefforresidentsat20%ofthesalaryincome(cappedatMMK10,000,000).
NoincometaxshallbeleviedonindividualsearninglessthanMMK4,800,000peryear.Inaddition,taxreliefsforresidenttaxpayerslivingtogetherwithparents,aspouseorchildrenremainunchanged:
■ Co-residentparentrelief:MMK1,000,000perparent;■ Spouserelief:MMK1,000,000;and■ Childrelief:MMK500,000peroffspring.
1.3.Lease/RentalIncome
Incomereceivedfromtheleasingofland,buildingsorapart-mentsshallbeseparatelytaxedat10%afterdeductionofre-liefsundersection6IncomeTaxLaw(asamended2011).
1.4.RelieforExemptionfromIncomeTax
ThenewUnionTaxLaw,2017expresslyprovidesfortheMinis-tryofPlanningandFinance’spowertograntrelieforexemptiononincometaxinrespectofincomerelatedtoactivitiescarriedoutwithdonationsorassistanceprovidedbydomesticorfor-eignentitiesaswellasincomerelatedtopubliccompanieslist-edontheYangonStockExchange.
2.CommercialTax
WhileMyanmarhasnotyet implementedavalueaddedtax(VAT)system,CommercialTaxisleviedasaturnovertaxonawiderangeofgoodsandservicesproduced,tradedorren-dered within Myanmar as well as the import of goods based on thelandedcost(i.e.thesumofthecost,insuranceandfreightvalue,andcustomsduties).
ExemptedfromthecollectionofCommercialTaxareonlyen-terprisesnotexceedingthestatutoryannualthresholdfortax-ablesupply(saleofgoodsorservices),whichhasbeen in-creasedfromMMK20,000,000toMMK50,000,000.Further,noCommercialTaxshallbeleviedonimportsnotexceedingtheCustomDepartment’sDeminimis Value Threshold, tariff ex-emptionrelatedtofast-trackclearanceinaccordancewithCus-tomsstandardprocedures.
2.1.CommercialTaxonImports,SalesandServices
Anymanufacturer,traderandserviceproviderisrequiredtoregisterforCommercialTax.ThegeneralCommercialTaxrateontheimportorsaleofgoodsandprovisionofservicesre-mainsunchangedat5%.CommercialTaxatareducedrateap-pliestopassengertransportservicesbydomesticairlinesandsalesproceedsonconstruction/saleofbuildingsat3%,andthesaleofgoldjewelleryat1%.
2.2.CommercialTax-ExemptedGoods
UnderthenewUnionTaxLaw,2017,thetotalnumberofgoodsexemptedfromCommercialTaxwasincreasedfrom86(UnionTaxLaw,2016)to87.
NoCommercialTaxshallbeleviedonthesaleofthefollow-ing goods:
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Sr. Type of Goods
1 Paddy,rice,brokenrice,coarsebran,finebran,paddyhusks
2 Coarseflour,fineflour
3 Grainandpowderofcornallkinds
4 Pulsesofallkinds,halves,flour,branandshells
5 Groundnuts,shelledorunshelled
6 Sesamum
7 Mustardseed,sunflowerseed,tamarindseed,cottonseed
8 Oil palm
9 Rawcottonofallkinds
10 Juteandotherfibres
11 Garlic,onions
12 Potatoes
13 Tapiocabulb,tapiocaflour
14 Spices,raw(leaf,fruit,seed,bark);spices,prepared(masala)
15 Freshfruitsofallkinds
16 Vegetables
17 Sugarcane,sugar,palm-candy,jaggery
18 Mulberryleaves(silkwormfodder)
19 Medicinalplantsorherbs
20 Thatch,reeds,‘dani’1,‘taung-htan’2,‘hpala’3,‘wa-u’4,‘thanaka’5andsuchagriculturalproductsnotelsewherespecified
21 Firewood,bamboo
22 Liveanimals,fish,prawns
23 Silkcocoons
24 Cane,finishedorunfinished
25 Honey,beeswax
26 Lac
27 Cake,mealandresidueofgroundnuts,sesamum,cottonseeds,ricebranetc.
28 Bleachingsubstances(hydrochloridesonly)
29 Coiryarn,palm-shellcharcoal
30 Tealeaves,freshordry,ofallkinds
31 Stamps,allkinds(includingrevenuestamps),[MyanmarNational]lotterytickets
32 Sealingwaxandsticks
33 Slates,slatepencilsandchalk
34 Shrimpandfishsauces(ngan-pya-ye)
35 Oilofpeanut,sesamum
36 Freshfish,freshprawn,freshmeat
37 Driedfish,driedprawns,allkinds
38 Marinatedfish,marinatedprawns,allkinds
39 Fishpowder,prawnpowder
1 Nipapalm.Mountainpalm.2 Cardamomplant.ElettariaCardamomum.3 Elephantfootyamtuber.LimoniaAcidissima.
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Sr. Type of Goods
40 Milk,condensedmilk,tinnedmilkandmilk-powderallkinds
41 Soymilk
42 Chilli,chillipowder
43 Saffron, saffron powder
44 Ginger
45 Fishpaste
46 Ripetamarind
47 National flags
48 Prayerbeads,allkinds(excludingthosemadefrompreciousstones)
49 Variouskindsofrulers,eraser,sharpener
50 Wood-replacementfuelblock
51 Coconutoil(notediblepalmoil)
52 Variouskindsoffowleggs
53 Pumpkinseeds,watermelonseeds,cashewnuts
54 Religiousclothes(suchasmonk‘srobes)
55 Oil dregs
56 Saltofallkinds
57 Rubber
58 Betelnuts
59 Syntheticfertilizers
60 Insecticides,herbicides,sprayforlivestockfarms
61 Agriculturalmachinery,toolsandspare-parts,four-wheeledploughing-machines
62 Rawmaterialsandfinishedgoodsforanimalfodder,fishmeal,prawnmeal
63 Medicamentsandvaccinesforanimals,fish,prawn
64 Artificialinseminationfluidandtubesforhigh-gradebreeding
65 Solarpanel,solarchargercontrollerandsolarinverter
66 X-rayfilm,platesandotherx-ray,surgicalandmedicinalpharmaceuticalapparatusandequipment(onlyforgoodsim-portedorproducedbyselfforuseinownhospital,clinics)
67 Bandages,gauze,othersurgicaldressingmaterials,hospitalandsurgicaloutfitandsundries(onlyforgoodsimportedorproducedbyselfforuseinownhospital,clinics)
68 Householdmedicinesandotherpharmaceuticalsincludingindigenousmedicinesallkindsforhumanconsumption(asprescribedthroughnotificationofMinistryofPlanningandFinance)
69 Pharmaceuticalrawmaterials,includingthoseforindigenousmedicines
70 Textbooks,exerciseanddrawingbooksandvariouskindsofpapersfortheproductionofsuchbooks,allsortsofpencil
71 Graphiteforpencilproduction
72 Condoms
73 Arms,vehicles,machineries,materialsandequipment,accessoriesandspare-partsthereof,usedbyDefenceandsecurityorganization
74 Variouskindsofgunpowder,variouskindsofdynamitesandaccessoriesthereofusedbythecivildepartments
75 High-grade,pure-straincerealseedsandsprouts
76 Firetrucks,hearses
77 Goodssoldinforeignexchangeatspecificlocationsfordepartingpassengers
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Sr. Type of Goods
78 Goodsforforeigndiplomaticmissionsandconsulatesrelevantunder“ReciprocalBasis”,anddiplomatsandnon-diplo-maticpersonnelthereof
79 GoodsforusebytheArmedForcesandforconsumptionbymembersoftheArmedForces,purchasedunderexpenditurebudgetallocatedtotheMinistryofDefence
80 Rawmaterials,componentsandpackagingconsignedbyprincipalfromabroadforcutting-manufacturing-packagingin-to finished goods
81 ElectricityandfueloilsoldbytheMinistryofEnergytoforeignembassies,UnitedNationsagenciesandforeigndiplomats
82 GoodsprocuredwithmoneydonatedorgrantedasaidtotheUnionbydomestic/foreignorganizations
83 Jetfueloilsoldforutilizationonforeignoutboundflights
84 Sparesandpartsformachinery,equipmentandmaterialsusedinaeroplaneorhelicopters
85 GoodsexemptedfromtaxesbytheUnionParliamentintheinterestoftheUnion
86 Goodsimportedundertemporaryadmissionordrawbacksystems,inaccordancewithcustomsprocedures
87 Polishedorunpolishedjade,ruby,sapphirepreciousstonessoldatdomesticMyanmargemfairsheldundergovernmen-talauspices
2.3.CommercialTax-ExemptedServices
UnderthenewUnionTaxLaw,2017noCommercialTaxshallbeleviedontheprovisionofthefollowingservices:
Sr. Kind of services
1 Parkinglotservices
2 Lifeinsuranceservices
3 Micro-financeservices
4 Healthcareservicesotherthancosmeticbodymodification
5 Educationalservices
6 Goodscarriageservices(carriagewithmotor-vehicles,watercraft,aircraft,machineriesexcludingtransportviapipeline)
7 Capitalmarketservices
8 BanksandfinancialservicescarriedonwithapprovaloftheCentralBank
9 Customs/portclearanceservices
10 Cateringequipmentrentalservices
11 Cutting-manufacturing-packagingservices
12 Funeralservices
13 Kindergartenservices
14 Traditionalphysiotherapy/physiotherapybytheblind
15 Housemovingservices
16 Roadtollcollectionservices
17 Animalhusbandryandveterinaryservices
18 Publictoiletservices
19 Foreignroutepassengertransportservices
20 Artandcultureservices
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Sr. Kind of services
21 Publictransportservices(otherthandomesticairtransportofpassengers)
22 Licensefeespaidtostateorganizationsforsomeconcession
23 PrintingandpublishingservicesfromthesecurityprintingworksundertheMinistryofDefence
24 Servicesprocuredbyforeigndiplomaticmissionsandconsulatesrelevantunder“reciprocalbasis”,anddiplomatsandnon-diplomaticpersonnelthereof
25 ServicesprocuredwithmoneydonatedorgrantedasaidtotheUnionbydomestic/foreignorganizations
26 GoodsexemptedfromtaxesbytheUnionParliamentintheinterestoftheUnion
27 Inter-organizationservicesbetweenorganizationssuchastheOfficeoftheUnion,President,OfficeoftheUnionGov-ernmentCabinet,OfficeoftheUnionParliament,OfficeofthePeople’sParliament,OfficeoftheNationalParliament,OfficeoftheUnionSupremeCourt,OfficeoftheConstitutionalTribunal,OfficeoftheUnionElectionCommission,Of-ficeoftheUnionAttorneyGeneral,OfficeoftheUnionAuditorGeneralandOfficeoftheUnionCivilServiceBoard,Of-ficeoftheNayPyiTawCouncil,SocialSecurityBoard,OfficesoftheRegion/stategoverningbodies,departments
GoodsprocuredwithmoneydonatedorgrantedasaidtotheUnionbydomestic/foreignorganizations
(excludingservicesprocuredorprovidedbyState-Owned-Enterprises)28 [National]Lottery
29 Mechanizedagricultureservices
2.4.RelieforExemptionfromCommercialTax
Pursuanttosection15(a)UnionTaxLaw,2017,theMinistryofPlanningandFinancemaygrantrelieforexemptionfromCom-mercialTaxinrespectofactivitiescarriedoutwithdonations,assistanceorloansfromdomesticorforeignorganizations.
3.SpecialGoodsTax
InadditiontoCommercialTax,SpecialGoodsTaxshallbelev-iedoncertaindomesticallyproducedandsoldgoods,aswellastheimportandexportofcertaingoods.
Specialgoodsdomesticallyproducedaretaxableaccordingtotheirvalue-grade(basedonthe[ex-factory]salespriceprovid-edbythefactory/workshop/workplaceorthesalespriceesti-matedbytheDirector-GeneralandManagementCommitteeoftheInternalRevenueDepartmentdependingonthemarketprice,whicheverisgreater).
Specialgoodsdomesticallyproducedandsoldwhicharenottaxable in accordancewith thepreviousparagraphwill betaxedbasedonthepricedeterminedbytheManagementCom-mitteeoftheInternalRevenueDepartment.
Imported special goods will be taxed based on the land-edvalue.
3.1.SpecialGoodsTaxonProduction,Importand Sale
The totalnumberofspecialgoodsbeingsubject toSpecialGoodsTaxwasincreasedfrom16(UnionTaxLaw,2016)to17,andvariousrateswereadjusted,introducingforexamplea50%SpecialGoodsTaxonvans,saloons,sedans,estatewagonsandcoupesotherthandouble-cab4-doorpickupswithmorethan4,000cc.
Thenewratesareasfollows,providedthatnoSpecialGoodsTaxshallbeleviedondomesticallymanufacturedanddistribut-edtobacco,cherootandcigarsifthesalesproceedswithinafi-nancialyeardonotexceedMMK20,000,000.
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Sr. Type of Special Goods Value Grade Tax Rate
1 (a)Cigarettes,allkinds GradeofsalepriceuptoMMK400per20-stickpacket MMK4/stick
(b)Cigarettes,allkinds GradeofsalepriceMMK401-600per20-stickpacket MMK9/stick
(c)Cigarettes,allkinds GradeofsalepriceMMK601-800per20-stickpacket MMK13/stick
(d)Cigarettes,allkinds GradeofsalepricefromMMK801andaboveper20-stickpacket
MMK16/stick
2 Tobacco 60%
3 Virginiatobacco,cured 60%
4 (a)Cheroots GradeofsalepriceuptoMMK10perpiece MMK0.5/piece
(b)Cheroots GradeofsalepriceuptoMMK11andaboveperpiece MMK1.0/piece
5 Cigars 80%
6 Pipetobacco 80%
7 Betelchewingtobacco,allkinds 80%
8 (a)Alcoholicliquor,allkinds ValueuptoMMK750/litre MMK91/litre
(b)Alcoholicliquor,allkinds ValueuptoMMK751-1,500/litre MMK274/litre
(c)Alcoholicliquor,allkinds ValueuptoMMK1,501-2,250/litre MMK457/litre
(d)Alcoholicliquor,allkinds ValueuptoMMK2,251-3,000/litre MMK640/litre
(e)Alcoholicliquor,allkinds ValueuptoMMK3,001-3,750/litre MMK823/litre
(f)Alcoholicliquor,allkinds ValueuptoMMK3,751-4,500/litre MMK1,006/litre
(g)Alcoholicliquor,allkinds ValueuptoMMK4,501-6,000/litre MMK1,280/litre
(h)Alcoholicliquor,allkinds ValueuptoMMK6,001-7,500/litre MMK1,646/litre
(i)Alcoholicliquor,allkinds ValueuptoMMK7,501-9,000/litre MMK2,011/litre
(j)Alcoholicliquor,allkinds ValueuptoMMK9,001-10,500/litre MMK2,377/litre
(k)Alcoholicliquor,allkinds ValueuptoMMK10,501-13,500/litre MMK2,925/litre
(l)Alcoholicliquor,allkinds ValueuptoMMK13,501-16,500/litre MMK3,657/litre
(m)Alcoholicliquor,allkinds ValueuptoMMK16,501-19,500/litre MMK4,388/litre
(n)Alcoholicliquor,allkinds ValueuptoMMK19,501-22,500/litre MMK5,119/litre
(o)Alcoholicliquor,allkinds ValueuptoMMK22,501-26,000/litre MMK5,911/litre
(p)Alcoholicliquor,allkinds ValueMMK26,001/litreandabove 60%ofperli-trevalue
9 Beer,allkinds 60%
10 (a)Wine,allkinds ValueuptoMMK750/litre MMK81/litre
(b)Wine,allkinds ValueuptoMMK751-1,500/litre MMK244/litre
(c)Wine,allkinds ValueuptoMMK1,501-2,250/litre MMK406/litre
(d)Wine,allkinds ValueuptoMMK2,251-3,000/litre MMK569/litre
(e)Wine,allkinds ValueuptoMMK3,001-3,750/litre MMK732/litre
(f)Wine,allkinds ValueuptoMMK3,751-4,500/litre MMK894litre
(g)Wine,allkinds ValueuptoMMK4,501-6,000/litre MMK1138/litre
(h)Wine,allkinds ValueuptoMMK6,001-7,500/litre MMK1,463/litre
(i)Wine,allkinds ValueuptoMMK7,501-9,000/litre MMK1,788/litre
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Sr. Type of Special Goods Value Grade Tax Rate
(j)Wine,allkinds ValueuptoMMK9,001-10,500/litre MMK2,113/litre
(k)Wine,allkinds ValueuptoMMK10,501-13,500/litre MMK2,600/litre
(l)Wine,allkinds ValueuptoMMK13,501-16,500/litre MMK3,250/litre
(m)Wine,allkinds ValueuptoMMK16,501-19,500/litre MMK3,900/litre
(n)Wine,allkinds ValueuptoMMK19,501-22,500/litre MMK4,550/litre
(o)Wine,allkinds ValueuptoMMK22,501-26,000/litre MMK5,254/litre
(p)Wine,allkinds ValueMMK26,001/litreandabove 50%ofperli-trevalue
11 Logsandconversions 5%
12 Unpolishedjade 15%
13 Unpolishedruby,sapphire,emerald 10%
14 Polishedjade,ruby,sapphire,emerald;andjade,ruby,sapphire,emeraldattachedtojewellery 5%
15 Vans,saloons,sedans,estatewagonsandcoupesotherthandouble-cab4-doorpickupsof1,501ccto2,000cc
20%
Vans,saloons,sedans,estatewagonsandcoupesotherthandouble-cab4-doorpickupsof2,001ccto4,000cc
30%
Vans,saloons,sedans,estatewagonsandcoupesotherthandouble-cab4-doorpickupsofabove4,000cc
50%
16 Kerosene,gasoline,diesel,jetfueloil 5%
17 Naturalgas 8%
3.2.SpecialGoodsTaxonExports
NoSpecialGoodsTaxshallbeimposedontheexportofspecialgoodsotherthanthosespecifiedbelow,providedthatSpecialGoodsTaxalreadypaidatthetimeofpurchase,importormanufacturemaybedeductedfromSpecialGoodsTaxleviedonexports:
Sr. Type of Goods Tax Rate
1 Naturalgas 8%
2 Logsandconversions 5%
3 Unpolishedjade 15%
4 Unpolishedruby,sapphire,diamond,emeraldandotherunpolishedpreciousstones 10%
5 Polishedjade,ruby,sapphire,diamond,emeraldandotherpolishedpreciousstones;andjade,ruby,sapphire,diamond,emeraldotherpolishedpreciousstonesattachedtojewellery
5%
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III. Draft Law Amending theSpecialGoodsTaxLaw
InMarch2017,the(DraftLawAmendingSpecialGoodsTaxLaw)waspublished, providing for somesignificant chang-esinapplyingtheSpecialGoodsTaxLaw(e.g.inadditiontopersonswhoimport,export,manufactureorpossessSpecialGoods,theSpecialGoodsTaxLawwillinfuturealsoapplytopersonsdealingwithintheUnioninjadeandgems).
TheprovisionsofthisLawshallbeeffectivefromtheFiscalYear2017-2018.
1.ImpositionofTaxandLiabilitytoPayTax
Pursuanttosec.4(a)SpecialGoodsTaxLaw,2016anyper-sonwhocarriesoutthefollowingactivitiesshallbeimposedwithtaxasspecifiedintheappendixscheduleofthelaw:-
■ ImportofSpecialGoods;
■ DomesticmanufactureofSpecialGoods;or
■ ExportofSpecialGoods.
Pursuanttosec.4(c)oftheDraftLawAmendingtheSpecialGoodsTaxLaw,anypersonwhoimports,exports,manufac-turesorpossessesSpecialGoods,aswellasgemdealers,shallcompanywiththelawandtherulesissuedthereunder.
Incaseof:-
■ ImportedSpecialGoods,taxshallbepaidbytheimporterofsuchSpecialGoods(andcollectedbytheCustomsDe-partmenttogetherwithcustomdutiesinthesamemannerascustomduties);
■ DomesticallymanufacturedSpecialGoods,taxshallbepaidbythemanufacturerofsuchSpecialGoods;
■ ExportedSpecialGoods,taxshallbepaidbytheexporterofsuchSpecialGoods(sec.5SpecialGoodsTaxLaw,2016).
Pursuanttosec.5(d)oftheDraftLawAmendingtheSpecialGoodsTaxLaw,sellersofgemsshallalsopaySpecialGoodsTax.IncasenoSpecialGoodsTaxhasbeenpaid,thepersonhavingtheSpecialGoodsinhis/herpossessionshallpaythe
applicabletax(sec.5(e)oftheDraftLawAmendingtheSpe-cialGoodsTaxLaw).
Previously,therelevantassesseehadtosubmittheinforma-tionrequiredfordeterminingthesale-priceasprescribedinre-spectofSpecialGoodsdomesticallymanufacturedorinpos-sessionandforwhichtaxhasnotbeenpaidtotheTownshipRevenueOffice.
UndertheproposedDraftLawAmendingtheSpecialGoodsTaxLaw,manufacturersorimportersofSpecialGoodsshallapplythroughtheRevenueOfficertotheDirector-GeneralfordeterminationoftheValue-GradeoftheSpecialGoodsmanu-facturedorimportedfortherelevantfiscalyear(sec.6(b)(1),(3)oftheDraftLawAmendingtheSpecialGoodsTaxLaw).SpecialGoodsforwhichtheValue-Gradehasnotbeendeter-minedmaybedeterminedashighestValue-GradeunlesstheDirector-GeneraldeterminesanotherappropriateValue-Grade(sec.6(b)(4)oftheDraftLawAmendingtheSpecialGoodsTax Law).
Pursuanttosec.7(a)oftheDraftLawAmendingtheSpecialGoodsTaxLaw,inrespectoftaxableSpecialGoods,compu-tationsshallbecarriedoututilizingthetaxratewhichisdeter-minedbasedonthevalue,quantity,weightorothermeasure-ment at the following date:
■ Incaseofimportsorexports,thedateofcustomclearanceofsuchSpecialGoods;
■ IncaseofSpecialGoodsmanufactureddomestically, thedateofmanufactureoftheSpecialGoodsasprescribedbynotificationoftheMinistryor–forallotherSpecialGoods–thedateofsaleoftheSpecialGoods;
■ ThedateofdiscoveryforSpecialGoodsforwhichtaxunderthelawhasnotbeenassessed;
■ Thedateofsalefordealingingems;or
■ OthersuitablemethodsasprescribedbytheDirector-Gener-al.
Pursuanttosec.7(b)oftheDraftLawAmendingtheSpecialGoodsTaxLaw,computationoftheamountofSpecialGoodsTaxpayableshallbebasedonthefollowingvalues:
■ Landed-ValueforimportedSpecialGoods;
■ TheEx-FactorypriceapprovedfortherelevantfiscalyearbytheDirector-GeneralandtheManagementCommitteeoftheInternalRevenueDepartmentforSpecialGoodsmanufac-
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tureddomestically(asprescribedbyNotificationoftheMin-istry)orthegreateroftheEx-FactorypricesubmittedbythemanufacturerordeterminedbytheDirector-GeneralortheTownshipRevenueOfficer;
■ FreeOnBoard(FOB)priceforexportedSpecialGoods;
■ SalepriceormarketpriceatthetimeofdiscoveryforSpecialGoodsforwhichtaxunderthisLawhasnotbeenassessed;
■ ThevaluecomputedaccordingtomethodsprescribedbytheDirector-GeneralforSpecialGoodsforwhichtaxunderthelawhasnotbeenassessedandwhichcannotbeassessedbasedonthesalepriceormarketpriceatthetimeofdiscov-ery;or
■ Thesaleproceedsforthedealingingems.
Pursuanttosec.7(c)oftheDraftLawAmendingtheSpecialGoodsTaxLaw,anypersonassessedwithtaxunderthelawshallmakepaymentasfollows:
■ BeforeclearanceforimportedSpecialGoods,;
■ FordomesticmanufactureofSpecialGoodswithinten(10)daysafterthemonthofmanufactureofsuchSpecialGoods(asprescribedbynotificationoftheMinistry)or–forallotherSpecialGoods-withinten(10)daysafterthemonthinwhichtheyaresold;
■ ForexportedSpecialGoodswithinten(10)daysafterthemonthinwhichtheyareexported;
■ Withinseven(7)daysdiscoveryforSpecialGoodsforwhichtaxunderthelawhasnotbeenassessed;or
■ Withinten(10)daysafterthemonthofsaleforthedealingin gems.
2.TaxExemptionsandReliefs
Pursuanttosec.9(a)oftheDraftLawAmendingtheSpecialGoods Tax Law, no tax shall be imposed on the following Spe-cialGoods:
Sr. Type of Special Goods1 ExportedSpecialGoodsotherthanthosestipulatedas
taxable on export by means of the Union Tariffs Law2 SpecialGoodssoldtotravellersfromDuty-FreeOut-
lets,other thanSpecialGoodsprescribedtobeas-sessed tax on export
3 SpecialGoodssoldon-boardaircraftorvesselplyingforeignroute,otherthanSpecialGoodsprescribedtobe assessed tax on export
4 SpecialGoodsimportedtemporarilywithobjectiveofre-exporting
5 SpecialGoodsimportedordomesticallymanufacturedforthepurposeofdonationdomesticallybyforeignordomesticdonorsinrespectofsocial,spiritual,health,educationalmatters
6 SpecialGoods imported forpersonsexemptedun-der international law, international or diplomat-icconventions
7 Fueloilintendedforusebyaircraftdepartingtoafor-eigncountry
Inaddition,theUnionGovernmentCabinetmaygranttaxex-emptionorreliefinrespectofthefollowingSpecialGoods(sec.9(c)DraftLaw):
Sr. Type of Special Goods1 SpecialGoodsprovidedasassistancetotheUnionby
foreignorganizationsorSpecialGoodsprocuredus-ing aid money
2 SpecialGoodsincludedinmutuallygrantedbi-lateralpreferential rights
3 SpecialGoodsmanufacturedbyselfor importedorprocuredbysecurityanddefenceforcesoftheUnion,other than logsorconversionsof teakorhardwoodhavingten-inchorgreatercircumference,jade,ruby,sapphire,emerald,diamondandothervaluablegemsinunpolishedorpolishedstate
Pursuanttosec.11(a)oftheDraftLawAmendingtheSpecialGoodsTaxLaw,amanufacturerorexporterofSpecialGoodsmay, from tax assessed, offset tax already paid at the time of purchasefromanotherSpecialGoodsmanufacturerorimportofSpecialGoods.Inordertoavoidanykindofdouble-taxa-tion,suchoff-settingoftaxonpaymentsshallbecarriedoutasprescribed(sec.11(b)oftheDraftLawAmendingtheSpecialGoods Tax Law).
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In general, no off-setting of tax shall be allowed for the man-ufacturing,sellingordealingingems(sec.11(c)oftheDraftLawAmendingtheSpecialGoodsTaxLaw).However,incaseofre-purchaseandexportofgemorsaleataMyanmaGemsFairheldundergovernmentalauspices,thetaxpaidatthetimeofre-purchaseatsaidfairmaybeoffsetfromthetaxassessedforexport(sec.11(d)oftheDraftLawAmendingtheSpecialGoods Tax Law).
3.PowersandResponsibilities
ComparedtotheSpecialGoodsTaxLaw,2016thenewDraftLawAmendingtheSpecialGoodsTaxLawprovidesformoreextensivepowersandresponsibilitiesoftheDirector-General(whomaydelegatesaidpowersandresponsibilitiestoanyindi-vidualortocommittees/groups).Pursuanttosec.12(b)oftheDraftLawAmendingtheSpecialGoodsTaxLaw,theDirec-tor-Generalmay–interalia–stopandinspecttransportationvehiclesthatareabouttodepartanywarehouseorbusinesspremisesrelatedtoSpecialGoodsorwhiletransportingSpe-cialGoods(before,thiswaslimitedtothepossibilitytodemandtransportationvehiclesabouttodepartanywarehouseoftax-ableSpecialGoodstostop).
4.Registration
TheDraftLawAmendingtheSpecialGoodsTaxLawextendsthegroupofpersonshavingtoregistertheirbusinesswiththeTownshipRevenueOffice.WhilethisobligationpreviouslyonlyappliedtomanufacturersofSpecialGoods,anyimporter,man-ufacturer,exporterofSpecialGoodsand/orgemsdealershallinfuturealsoapplyforregistration(sec.15(a)oftheDraftLawAmendingtheSpecialGoodsTaxLaw).
Uponscrutiny,theTownshipRevenueOfficeshallissueabusi-nessregistrationcertificatefortherelevantFiscalYear(sec.15(c)oftheDraftLawAmendingtheSpecialGoodsTaxLaw),whichshallberenewedbytheapplicanteachyear(sec.15(d)oftheDraftLawAmendingtheSpecialGoodsTaxLaw).
5.SubmissionofDeclarationForm
Previously, onlydomesticmanufacturersofSpecialGoodswererequiredtosubmitamonthlydeclarationtotheTownshipRevenueOfficer;importersoftaxableSpecialGoodswerere-quiredtosubmitalistofimportedSpecialGoodstotheCus-tomsDepartmentbeforeclearance.Pursuant tosec.16 (a)oftheDraftLawAmendingtheSpecialGoodsTaxLaw,both
manufacturersandimportersoftaxableSpecialGoods(aswellasgemdealers)shallnowallsubmitaquarterlydeclarationformtotheTownshipRevenueOfficer.
Inaddition,importersoftaxableSpecialGoodsshallsubmitalistofimportedSpecialGoodstotheCustomsDepartmentbe-foreclearancefromtheCustomsDepartment(sec.16(c)oftheDraftLawAmendingtheSpecialGoodsTaxLaw).
6.AssessmentandRefund
TheDraftLawAmendingtheSpecialGoodsTaxLawprovidesforaself-assessment,and if theTownshipRevenueOfficeissatisfiedthatthedeclarationformiscompleteandcorrect,SpecialGoodsTaxshallbeassessedcorrespondingly(sec.17(a)oftheDraftLawAmendingtheSpecialGoodsTaxLaw).Otherwise,theauthoritiesmayassessthepayabletaxthroughexaminationofanyevidenceasmayberequired(sec.17(b)oftheDraftLawAmendingtheSpecialGoodsTaxLaw).Shouldthetaxpayerfail tosubmitadeclarationform,theTownshipRevenueOfficeshallassesstaxbasedoninformationreceivedorfurtherdemanded(sec.17(c),(d)oftheDraftLawAmendingtheSpecialGoodsTaxLaw).
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IV.Notification6/2017on“Proceduresforlegalactionagainstimportsincontraventionoflicense,specifications”On11January2017,exercisingthepowersconferredbysec-tion204 (b)of theSeaCustomsAct,1878, theMinistryofPlanningandFinanceissuedNotification6/2017onthe “Pro-cedures for legal action against imports in contravention of li-cense, specifications”.
Thesenewprocedures,pursuanttowhichgoodsimportedintoMyanmarwithoutthenecessarypermissionmaybeconfiscat-ed,andanypersoninvolvedinsuchoffenceshallbepunishedwithafineorimprisonment,cameintoforce60-daysaftertheissuanceofNotification6/2017.
1.LegalActionagainstimproperImports
Pursuanttosec.3ofNotification6/2017,goodsimportedintoMyanmarwithoutanydocumentsofpermissionandincontra-ventionofprohibitionsorregulatoryrestrictionsshallbeliableforconfiscationundersection167(8)SeaCustomsAct,1878andsection7(1)oftheLandCustomsAct,1924.Anypersonthatisinvolvedinsuchoffenceshallbeliableforpaymentofafinenotexceedingthree(3)timesthevalueofcustomsdutiesonsuchgoods.Intheabsenceofwhich(thevalueofcustomsdutiesonsuchgoods),saidpersonmaybechargedbyacrim-inalcourt,andshalluponconvictionbeliableforaprisontermnotexceedingthree(3)years.
2.Re-Possession
TheowneroftheconfiscatedgoodsmayapplytotheDirec-torGeneralundersection183oftheSeaCustomsAct,1878tobeallowedtotakere-possessionofthegoodsafterpaymentofthe appropriate monetary penalties. Depending on the magni-tudeoftheoffence,theDirectorGeneralmayallowsuchrepos-sessingofthegoods(section4ofNotification6/2017).
3.Fines
Finesfortheimproperimportofmotor-vehicles,machinesandgeneralgoods imported incontraventionof licenserequire-mentsandrestrictionsareprescribedintheannexedscheduleofNotification6/2017.LegalactionwillbetakenundertheSeaCustomsAct,1878andtheLandCustomsAct,1924againstimportofprohibitedgoods(section5ofNotification6/2017).
4.Appeal
AnypersonaggrievedbyanyorderordecisionmadebyaCus-tomsOfficerundertheSeaCustomsAct,1878maywithinonemonthofsuchruling,lodgeanappealinaccordancewithsec-tion188andsection189oftheSeaCustomsAct,1878(section6ofNotification6/2017).
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AnnexI-UnofficialEnglishTranslationTheGovernmentoftheRepublicoftheUnionofMyanmar
MinistryofPlanningandFinanceOfficeoftheUnionMinisterNotification 2/2017January10,2017
1. ExercisingthepowersconferredbySection(16)sub-section(b)oftheIncomeTaxLaw,theMinistryofPlanningandFinance,withtheapprovaloftheUnionGovernmentCabinet,herebyissuesratesofwithholdingtaxinrespectofthefollowingcatego-ries of non-salary payments:
Sr.
Withholding Tax %Payments to Resident Citizens and Resident Foreigners
Payments to Non-resident Foreigners
a. Interest payment for a loan or indebtedness oratransactionofsimilarnatureorSaving
- 15.0
b. Royalties for the use of Licenses, Trade-marks,PatentRightetc.
10.0 15.0
c. PaymentbyStateorganizations,Stateen-terprises,DevelopmentCommittees,co-op-erativesocieties,foreigncompanies,foreignenterprisesandorganizations,localcompa-niesandunderanexistinglawforpurchaseofgoods,workperformedorsupplyofser-vicesandhiring/leasingofpropertywithinthecountryunderatender,contract,quota-tionorothermodes(otherthantheservicesmentionedinaboveitemsofthistable.):
2.0 2.5
2. Taxshallbewithheldatratesprescribedintheaboveparagraph,inKyatsincaseofpaymenttoResidentCitizenorResidentForeigner,andinthepaymentcurrencyincaseofpaymenttoNon-residentForeigner,anddepositedtothebankaccountoftherelevanttaxofficeunderthenameoftheindividualorentityreceivingofthepayment.
3. Thewithholdingtaxinparagraph#1inrespectofNon-residentForeignershallbedeemedastheincometaxpaidunderfinalassessmentinrespectofsaidNon-residentForeigner,providedthatthewithholdingtaxshallbeoffsetfromtheincometaxas-sessedonbusinesscarriedonwithinthecountryasabranch-officeoftheNon-residentForeigner.
4. UponpresentationbyaNon-residentForeignerofaCertificateofResident(sic)fromtheinternalrevenueserviceoftherele-vantcountrywhichispartytoanAgreementforAvoidanceofDoubleTaxationandPreventionofFiscalEvasion(TaxTreaty),withholdingtaxshallbeprocessedattherateprescribedinsuchTaxTreatyconcludedwiththerelevantcountry.
5. ThepersonwhoprocesseswithholdingtaxshallpreparetheformprescribedbytheInternalRevenueDepartmentintriplicate,withtheoriginalprovidedtotheassesse,oneduplicateprovidedtotherelevanttaxofficeandtheremainingduplicateretained.
6. Inprocessingwithholdingtaxasperparagraph#1:
a. NowithholdingtaxshallbeimposedincasethesumofpaymentswithinoneincomeyeardoesnotexceedKyats5-lakhs.IfsumofpaymentsexceedsKyats5-lakhs,withholdingtaxshallbeimposedontheaggregatepaymentatthecorrespond-ing rate.
b. Eventhoughindividualpaymentsdonotexceedtheprescribedamount,withholdingtaxshallbeimposedattheprescribedratesinthecasewheremultiplepaymentswithintheyearexceedtheprescribedamount.
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c. IncaseofpaymenttoNon-residentForeignerorpaymentinforeigncurrency,withholdingtaxshallbeimposedonallofthepaymentatthecorrespondingratesinthetable.
d. Forallcategoriesofpayment,thelistofpaymentswhichdonotreachtheprescribed[threshold]amountforimpositionofwithholdingtaxshallbereportedtotherelevanttaxofficeasinformation.
7. However:
a. Nowithholdingtaxshallbeimposedonpaymentsbetweengovernmentorganizations,paymentstogovernmentbodiesandState-OwnedEnterprises.
b. Nowithholdingtaxshallbeimposedoninterestpaymentsforaloanorindebtednessoratransactionofsimilarnatureorsaving,ifthebranch-officeoftheNon-residentForeignerisregisteredwithinthecountryandifitundergoestaxassess-mentdomestically.
c. TheDirector-GeneraloftheInternalRevenueDepartmenthasthepowertoprescribemeasurestoavoidrepeatedimposi-tionsoftaxforthesametransaction,eventhoughitmaycomeundercategoriesofpaymentsinaboveparagraph#1.
d. Refusalofthereceiverofpaymenttoagreetoimpositionofwithholdingtaxshallnotrelievethepaymentmakerfromhisdu-ty to impose withholding tax.
8. ThisNotificationrescindsnotification41/2010dated10-3-2010andnotification167/2011dated26-8-2011oftheMinistryofFi-nanceandRevenue.
9. ThisNotificationshallapplywitheffectfromApril1,2017.
Kyaw Win Union Minister
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AnnexII-UnofficialEnglishTranslation2017 Union Tax Law
Union Parliament Law No. 4/2017March 1, 2017
TheUnionParliamentherebyenactsthisLaw.
Chapter1:Title,EffectiveDateandDefinitions
1. –
a. Thislawshallbeknownasthe2017 Union Tax Law.
b. ThisLawshallbeeffectivecommencingfromApril1,2017forthefinancialyear2017-2018withregardtoChapter(5)-“Spe-cialGoodsTax”,Chapter(6)-“CommercialTax”.
c. WithregardtoChapter(7)-”IncomeTax”ofthisLaw:
(1)provisionsconcerningSalaryIncomecontainedinSection(19)andprovisionscontainedinSection(25)shallbeeffectivecommencingfromApril1,2017.
(2)theremainingprovisionsshallbeeffectivecommencingfromtheincomeyear2017-2018.
2. ThefollowingexpressionscontainedinthisLawshallhavethemeaningsgivenhereunder:
a. Taxmeanstaxes,customduties,charges,licensefees,permitfeesandfinesleviedbytheUnionGovernmentfortheUnion.
b. LegislationmeanslawsenactedconcerningtaxesleviedbytheUnionGovernmentfortheUnion.
c. Relevant MinistrymeanstheUnionMinistriesandtheNayPyiTawCouncilresponsibleforcollectingtaxesleviedbytheUnionGovernmentfortheUnion.
d. Budget LawmeanstheUnionBudgetLawissuedannuallyandtheSupplementaryBudgetAllocationsLaw.
e. Taxation RatemeansthetaxationratesstipulatedfortaxesleviedbytheUnionGovernmentfortheUnion.
Chapter2:TaxRevenueBudget
3.TheUnionTaxRevenuesspecifiedintheUnionBudgetLawisthetaxesbudgetedforcollectionintherelevantyearasperSchedule(1)ofthisLaw.
Chapter3:StipulationofTaxRatesandReporting
4. TheRelevantMinistryshallcollectthetaxamountsbudgetedinrespectofthetaxclassesspecifiedinthisLaw,atthetaxratescontainedinthisLaw.
5. TheUnionGovernmentCabinetshallintroduceamotionforconsiderationbytheUnionParliament,ifdesirousofamendingthetaxratescontainedinthisLaw.
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6. –
a. TheRelevantMinistryshallsendtotheBudgetDepartmentthequarterlystatusofcollectionwithregardtothebudgetedtaxamountscontainedinSchedule(1)ofthisLaw.
b. TheBudgetDepartmentshallconsolidatethestatementsofcollectedtaxessentbyRelevantMinistries,andreportquarter-lywithassessmentstotheUnionGovernmentCabinetthroughtheMinistryofPlanningandFinance.
7. TheUnionGovernmentCabinetshallreporttotheUnionParliamentthesix-monthlystatusofcollectionwithregardtothebud-getedtaxamountscontainedinSchedule(1)ofthisLaw.
Chapter4:DutiesandPowersoftheRelevantMinistry
8. ARelevantMinistryshallberesponsibleforadministeringandsupervisingthecollectionasbudgetedoftaxamountscontainedinSchedule(1)ofthisLaw.
9. InorderthattheprovisionsrelatedtoSpecialGoodsTax,CommercialTaxandIncomeTaxmaybecompliedwithinclarity,theUnionGovernmentMinistryofPlanningandFinancemayissuedirectivesasnecessarywithoutalteringtheoriginalmeaningoftheprovisions.
10.InorderthatthoseliabletopaytaxesdopayinaccordancewithLegislation,aRelevantMinistrymayprocuretheassistanceandnecessaryinformationfromtheUnion,President,UnionGovernmentCabinet,UnionParliament,People’sParliament,Na-tionalParliament,UnionSupremeCourt,ConstitutionalTribunal,UnionElectionCommission,UnionAttorneyGeneral,UnionAuditorGeneralandUnionCivilServiceBoard,NayPyiTawCouncil,UnionMinistries,CentralBankofMyanmar,Region/stategovernmentcabinetsandLeading-bodiesofSelf-AdministeredDivision/zones.
Chapter5:SpecialGoodsTax
11.TheAppendixSchedulesoftheSpecialGoodsTaxLawarestipulatedasfollowsinaccordancewithSection(6)ofthatlaw:
SpecialGoods
a. SpecialGoodsTaxinrespectoftheSpecialGoodsspecifiedinthefollowingScheduleshallbeleviedattherespectivetaxratesshownadjacent:
(1)IncaseofdomesticallyproducedSpecialGoodstaxableaccordingtovalue-grade,basedonwhicheverisgreaterbe-tweenthe[ex-factory]salespriceprovidedbythefactory/workshop/workplaceorthesalespriceestimatedbytheDirec-tor-GeneralandManagementCommitteeoftheInternalRevenueDepartmentdependingonthemarketprice;
(2)IncaseofdomesticproductionandsaleofSpecialGoodsnottaxableaccordingtovalue-grade,basedonthepricede-terminedbytheManagementCommitteeoftheInternalRevenueDepartment;
(3)onthelandedvalueincaseofimports;
Sr. Type of Special Goods Value Grade Tax Rate
1 (a)Cigarettes,allkinds GradeofsalepriceuptoMMK400per20-stickpacket MMK 4/stick
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(b)Cigarettes,allkinds GradeofsalepriceMMK401-600per20-stickpacket MMK 9/stick
(c)Cigarettes,allkinds GradeofsalepriceMMK601- 800per20-stickpacket MMK 13/stick
(d)Cigarettes,allkinds GradeofsalepricefromMMK801andaboveper
20-stickpacket
MMK 16/stick
2 Tobacco 60%
3 Virginiatobacco,cured 60%
4 (a)Cheroots GradeofsalepriceuptoMMK10perpiece MMK0.5/piece
(b)Cheroots GradeofsalepriceuptoMMK11andaboveperpiece MMK1.0/piece
5 Cigars 80%
6 Pipetobacco 80%
7 Betelchewingtobacco,allkinds 80%
8 (a)Alcoholicliquor,allkinds ValueuptoMMK750/litre MMK 91/litre
(b)Alcoholicliquor,allkinds ValueuptoMMK751-1,500/litre MMK 274/litre
(c)Alcoholicliquor,allkinds ValueuptoMMK 1,501-2,250/litre MMK 457/litre
(d)Alcoholicliquor,allkinds ValueuptoMMK2,251-3,000/litre MMK 640/litre
(e)Alcoholicliquor,allkinds ValueuptoMMK3,001-3,750/litre MMK 823/litre
(f)Alcoholicliquor,allkinds ValueuptoMMK3,751-4,500/litre MMK 1,006/litre
(g)Alcoholicliquor,allkinds ValueuptoMMK4,501-6,000/litre MMK 1,280/litre
(h)Alcoholicliquor,allkinds ValueuptoMMK6,001-7,500/litre MMK 1,646/litre
(i)Alcoholicliquor,allkinds ValueuptoMMK7,501-9,000/litre MMK 2,011/litre
(j)Alcoholicliquor,allkinds ValueuptoMMK9,001-10,500/litre MMK 2,377/litre
(k)Alcoholicliquor,allkinds ValueuptoMMK10,501-13,500/litre MMK 2,925/litre
(l)Alcoholicliquor,allkinds ValueuptoMMK13,501-16,500/litre MMK 3,657/litre
(m)Alcoholicliquor,allkinds ValueuptoMMK16,501-19,500/litre MMK 4,388/litre
(n)Alcoholicliquor,allkinds ValueuptoMMK19,501-22,500/litre MMK 5,119/litre
(o)Alcoholicliquor,allkinds ValueuptoMMK22,501-26,000/litre MMK 5,911/litre
(p)Alcoholicliquor,allkinds ValueMMK26,001/litreandabove 60%of per li-trevalue
9 Beer,allkinds 60%
10 (a)Wine,allkinds ValueuptoMMK750/litre MMK 81/litre
(b)Wine,allkinds ValueuptoMMK751-1,500/litre MMK 244/litre
(c)Wine,allkinds ValueuptoMMK 1,501-2,250/litre MMK 406/litre
(d)Wine,allkinds ValueuptoMMK2,251-3,000/litre MMK 569/litre
(e)Wine,allkinds ValueuptoMMK3,001-3,750/litre MMK 732/litre
(f)Wine,allkinds ValueuptoMMK3,751-4,500/litre MMK 894litre
(g)Wine,allkinds ValueuptoMMK4,501-6,000/litre MMK 1138/litre
(h)Wine,allkinds ValueuptoMMK6,001-7,500/litre MMK 1,463/litre
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Sr. Type of Special Goods Value Grade Tax Rate
(i)Wine,allkinds ValueuptoMMK7,501-9,000/litre MMK 1,788/litre
(j)Wine,allkinds ValueuptoMMK9,001-10,500/litre MMK 2,113/litre
(k)Wine,allkinds ValueuptoMMK10,501-13,500/litre MMK 2,600/litre
(l)Wine,allkinds ValueuptoMMK13,501-16,500/litre MMK 3,250/litre
(m)Wine,allkinds ValueuptoMMK16,501-19,500/litre MMK 3,900/litre
(n)Wine,allkinds ValueuptoMMK19,501-22,500/litre MMK 4,550/litre
(o)Wine,allkinds ValueuptoMMK22,501-26,000/litre MMK 5,254/li-tre
(p)Wine,allkinds ValueMMK 26,001/litreandabove 50%of per li-trevalue
11 Logsandconversions 5%
12 Unpolishedjade 15%
13 Unpolishedruby,sapphire,emerald 10%
14 Polished jade, ruby, sapphire, emerald; and jade, ruby, sapphire, emerald attachedtojewellery
5%
15 a.Vans,saloons,sedans,estatewagonsandcoupesotherthandouble-cab4-doorpickupsof1,501ccto2,000cc
20%
b.Vans,saloons,sedans,estatewagonsandcoupesotherthandouble-cab4-doorpickupsof2,001ccto4,000cc
5%
c.Vans,saloons,sedans,estatewagonsandcoupesotherthandouble-cab4-doorpickupsofabove4,000cc
20%
16 Kerosene,gasoline,diesel,jetfueloil 5%
17 Naturalgas 8%
Withregardtoanyofthefollowingtypesofgoods,SpecialGoodsTaxshallbeleviedonexportersatratesshownadjacent.NoSpecialGoodsTaxshallbeimposedonexportofSpecialgoodsotherthanthosespecified.Specialgoodstaxalreadypaidatthetimeofpurchase,importormanufactureshallbedeductedfromSpecialGoodsTaxleviedonexports:
Sr. Type of Goods Tax Rate
1 Naturalgas 8%
2 Logsandconversions 5%
3 Unpolishedjade 15%
4 Unpolishedruby,sapphire,diamond,emeraldandotherunpolishedpreciousstones 10%
5 Polishedjade,ruby,sapphire,diamond,emeraldandotherpolishedpreciousstones;andjade,ruby,sap-phire,diamond,emeraldotherpolishedpreciousstonesattachedtojewellery
5%
FromamongthespecialgoodsliablefortaxunderSpecialGoodsTaxLaw,noSpecialGoodsTaxshallbeleviedontobacco,cherootandcigardomesticallymanufacturedanddistributedifthesalesproceedswithinafinancialyeardonotexceedKyat200lakhs.
1. TheexpressionscontainedinChapter(5)ofthisLawshallhavethesamemeaningasdefinedintheSpecialGoodsLaw.
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Chapter6:CommercialTax
2. TheAppendixSchedulesoftheCommercialTaxLawarestipulatedasfollowsinaccordancewithSection(6)ofthatlaw:
CommercialTaxAnnexSchedules
a. NoCommercialTaxshallbeleviedonanyofthefollowinggoods:
Sr. Type of Goods
1 Paddy,rice,brokenrice,coarsebran,finebran,paddyhusks
2 Coarseflour,fineflour
3 Grainandpowderofcornofallkinds
4 Pulsesofallkinds,halves,flour,branandshells
5 Groundnuts,shelledorunshelled
6 Sesamum
7 Mustardseed,sunflowerseed,tamarindseed,cottonseed
8 Oil palm
9 Rawcottonofallkinds
10 Juteandotherfibres
11 Garlic,onions
12 Potatoes
13 Tapiocabulb,tapiocaflour
14 Spices,raw(leaf,fruit,seed,bark);spices,prepared(masala)
15 Freshfruitsofallkinds
16 Vegetables
17 Sugarcane,sugar,palm-candy,jaggery
18 Mulberryleaves(silkwormfodder)
19 Medicinalplantsorherbs
20 Thatch, reeds, ‘dani’6, ‘taung-htan’7, ‘hpala’8, ‘wa-u’9, ‘thanaka’10 and such agricultural products not else-wherespecified
21 Firewood,bamboo
22 Liveanimals,fish,prawns
23 Silkcocoons
24 Cane,finishedorunfinished
25 Honey,beeswax
26 Lac
27 Cake,mealandresidueofgroundnuts,sesamum,cottonseeds,ricebranetc.
28 Bleachingsubstances(hydrochloridesonly)Nipa palm.1 Possibly“mountain-palm”.2 Cardamomplant.ElettariaCardamomum.3 Elephantfootyamtuber.4 LimoniaAcidissima.
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Sr. Type of Goods
29 Coiryarn,palm-shellcharcoal
30 Tealeaves,freshordry,ofallkinds
31 Stamps,allkinds(includingrevenuestamps),[MyanmarNational]lotterytickets
32 Sealingwaxandsticks
33 Slates,slatepencilsandchalk
34 Shrimpandfishsauces(ngan-pya-ye)
35 Oilofpeanut,sesamum
36 Freshfish,freshprawn,freshmeat
37 Driedfish,driedprawns,allkinds
38 Marinatedfish,marinatedprawns,allkinds
39 Fishpowder,prawnpowder
40 Milk,condensedmilk,tinnedmilkandmilk-powderallkinds
41 Soymilk
42 Chilli,chillipowder
43 Saffron, saffron powder
44 Ginger
45 Fishpaste
46 Ripetamarind
47 National flags
48 Prayerbeads,allkinds(excludingthosemadefrompreciousstones)
49 Variouskindsofrulers,eraser,sharpener
50 Wood-replacementfuelblock
51 Coconutoil(notediblepalmoil)
52 Variouskindsoffowleggs
53 Pumpkinseeds,watermelonseeds,cashewnut
54 Religiousclothes(suchasmonk‘srobes)
55 Oil dregs
56 Saltofallkinds
57 Rubber
58 Betelnut
59 Syntheticfertilizers
60 Insecticides,herbicides,sprayforlivestockfarms
61 Agriculturalmachinery,toolsandspare-parts,four-wheeledploughing-machines
62 Rawmaterialsandfinishedgoodsforanimalfodder,fishmeal,prawnmeal
63 Medicamentsandvaccinesforanimals,fish,prawn
64 ArtificialInseminationfluidandtubesforhigh-gradebreeding
65 Solarpanel,solarchargercontrollerandsolarinverter
66 X-rayfilm,platesandotherx-ray,surgicalandmedicinalpharmaceuticalapparatusandequipment(onlyforgoodsimportedorproducedbyselfforuseinownhospital,clinics)
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Sr. Type of Goods
67 Bandages,gauze,othersurgicaldressingmaterials,hospitalandsurgicaloutfitandsundries(onlyforgoodsim-portedorproducedbyselfforuseinownhospital,clinics)
68 Householdmedicinesandotherpharmaceuticalsincludingindigenousmedicinesallkindsforhumanconsump-tion
(asprescribedthroughnotificationofMinistryofPlanningandFinance)69 Pharmaceuticalrawmaterials,includingthoseforindigenousmedicines
70 Textbooks,exerciseanddrawingbooksandvariouskindsofpapersfortheproductionofsuchbooks,allsortsofpencil
71 Graphiteforpencilproduction
72 Condoms
73 Arms,vehicles,machineries,materialsandequipment,accessoriesandspare-partsthereof,usedbydefenceandsecurityorganization
74 Variouskindsofgunpowder,variouskindsofdynamitesandaccessoriesthereofusedbythecivildepartments
75 High-grade,pure-straincerealseedsandsprouts
76 Firetrucks,hearses
77 Goodssoldinforeignexchangeatspecificlocationsfordepartingpassengers
78 Goodsforforeigndiplomaticmissionsandconsulatesrelevantunder“ReciprocalBasis”,anddiplomatsandnon-diplomaticpersonnelthereof
79 GoodsforusebytheArmedForcesandforconsumptionbymembersoftheArmedForces,purchasedunderex-penditurebudgetallocatedtotheMinistryofDefence
80 Rawmaterials,componentsandpackagingconsignedbyprincipalfromabroadforcutting-manufacturing-pack-aging into finished goods
81 ElectricityandfueloilsoldbytheMinistryofEnergytoforeignembassies,UnitedNationsagenciesandfor-eign diplomats
82 GoodsprocuredwithmoneydonatedorgrantedasaidtotheUnionbydomestic/foreignorganizations
83 Jetfueloilsoldforutilizationonforeignoutboundflights
84 Sparesandpartsformachinery,equipmentandmaterialsusedinaeroplaneorhelicopters
85 GoodsexemptedfromtaxesbytheUnionParliamentintheinterestoftheUnion
86 Goodsimportedundertemporaryadmissionordrawbacksystems,inaccordancewithcustomsprocedures
87 Polishedorunpolishedjade,ruby,sapphirepreciousstonessoldatdomesticMyanmargemfairsheldundergov-ernmentalauspices
b. Withregardtoanygoodsotherthanthosespecifiedinsub-section(a),CommercialTaxshallbeleviedattherateof5percentofsalesproceedsincaseofdomesticproductionorthelandedvalueincaseofimports.WithrespecttoanyspecialgoodsspecifiedinSection(11)ofthisLaw,CommercialTaxshallbepaidattherateoffivepercentonsalesproceedsinclusiveofSpecialGoodsTaxincaseofdomesticproductionorthelandedvalueinclusiveofSpecialGoodsTaxincaseofimports.
c. AnypersonengagedinanyofthefollowingenterprisesinclusiveofspecialgoodsofSection(11)shallpayCommercialTaxat5percentonsalesproceeds,exceptinthecaseoftradingingoodsexemptedunderthisLaw:(1)importanddomesticsaleofgoods;
(2)trade/commerce.
d. NoCommercialTaxshallbeleviedonthefollowingserviceenterprises:
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Sr. Kind of services
1 Parkinglotservices
2 Lifeinsuranceservices
3 Micro-financeServices
4 HealthcareServicesotherthancosmeticbodymodification
5 Educationalservices
6 GoodsCarriageServices(carriagewithmotor-vehicles,watercraft,aircraft,machineriesexcludingtransportviapipeline)
7 Capitalmarketservices
8 BanksandfinancialservicescarriedonwithapprovaloftheCentralBank
9 Customs/portclearanceservices
10 Cateringequipmentrentalservices
11 Cutting-manufacturing-packagingservices
12 Funeralservices
13 Kindergartenservices
14 Traditionalphysiotherapy/physiotherapybytheblind
15 Housemovingservices
16 Roadtollcollectionservices
17 Animalhusbandryandveterinaryservices
18 Publictoiletservices
19 Foreignroutepassengertransportservices
20 Artandcultureservices
21 Publictransportservices(otherthandomesticairtransportofpassengers)
22 LicensefeespaidtoStateorganizationsforsomeconcession
23 PrintingandpublishingservicesfromthesecurityprintingworksundertheMinistryofDefence
24 Servicesprocuredbyforeigndiplomaticmissionsandconsulatesrelevantunder“ReciprocalBasis”,anddiplomatsandnon-diplomaticpersonnelthereof
25 ServicesprocuredwithmoneydonatedorgrantedasaidtotheUnionbydomestic/foreignorganizations
26 GoodsexemptedfromtaxesbytheUnionParliamentintheinterestoftheUnion
27 Inter-organizationservicesbetweenorganizationssuchastheOfficeoftheUnion,President,OfficeoftheUnion
GovernmentCabinet,OfficeoftheUnionParliament,OfficeofthePeople’sParliament,OfficeoftheNational
Parliament,OfficeoftheUnionSupremeCourt,OfficeoftheConstitutionalTribunal,OfficeoftheUnionElection
Commission,OfficeoftheUnionAttorneyGeneral,OfficeoftheUnionAuditorGeneralandOfficeoftheUnionCivilServiceBoard,OfficeoftheNaypyidawCouncil,SocialSecurityBoard,OfficesoftheRegion/stategoverningbodies, departments
GoodsprocuredwithmoneydonatedorgrantedasaidtotheUnionbydomestic/foreignorganizations(excludingservicesprocuredorprovidedbyState-Owned-Enterprises)
28 [National]Lottery
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29 Mechanizedagricultureservices
e. Otherthanforserviceenterprisesaspersub-section(d),serviceenterprisesoperatingwithintheUnionshallbeleviedCommercialTaxat5percentonserviceincome:
f. Commercialtaxshallbeleviedat3percentonincomefrompassengertransportbydomesticairlines.
g. Commercialtaxshallbeleviedat3percentonsalesproceedsonconstructionandsaleofbuildingswithintheUnion.ThepersonwhoconstructsandsellsbuildingsshallcomplywithandenjoythedutiesandrightsprovidedintheCommercialTaxLawandCommercialTaxRegulations.
h. Commercialtaxshallbeleviedatonepercentonsalesproceedsofgoldjewellery.
15.-
a. TheMinistryofPlanningandFinancemaygrantrelieforexemptionfromCommercialTaxinrespectofactivitiescarriedoutwithdonations,assistance,loansfromdomesticorforeignorganizations.
b. NoCommercialTaxshallbeleviedunderCommercialTaxLawinthecooperativesectorandprivatesectorprovidedthatsalesorserviceincomedoesnotexceedthefollowinglimits.
(1)Totalsalesproceeds,withinafinancialyearfromproductionandsalewithintheStateofgoodsliableforCommercialTax,ofKyats500lakhsonly;
(2)Totalserviceproceeds,withina financialyear fromprovisionofservices liable forCommercialTax,ofKyats500lakhsonly;
(3)TotalsalesproceedsfromtradingwithinafinancialyearofKyats500lakhsonly;
(4)RelieforexemptionfromCommercialTaxDeminimis Value Threshold,tariffexemptionrelatedtofast-trackclearanceinaccordancewithCustomsstandardprocedures.
16.AnypersonreceivingforeignexchangethroughproductionandsaleofanygoodsliableforCommercialTax,orthroughprovi-sionofanyserviceliableforCommercialTax,orthroughanytrading,shallpay,uponsuchforeignexchangereceipts,CommercialTaxinKyatscomputedattherespectiveratesstipulatedinthisLawinaccordancewithCommercialTaxregulations.
17.–
TheprovisionunderthisSectionshallnotberelevanttothestipulationoftheamountofsalesproceedsorincomeforwhichCommercialTaxisexempted.
18.TheexpressionscontainedinChapter(6)ofthisLawshallhavethesamemeaningasprovidedintheCommercialTaxLaw.
Chapter7.IncomeTax
19.–
a. NoincometaxshallbeleviedonanypersonearninguptoKyats48lakhsperannum.Ifsupportingdocumentsarerequest-edinrespectofsuchun-assessedandthusexemptedsalaryincome,theInternalRevenueDepartmentshallissuethemasprescribed.
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b. However,apersonearninginexcessofKyats48lakhsperannumshallpayincometaxontotalsalaryincome.
c. ApersonearninginexcessofKyats48lakhsperannuminsalaryorincaseofapersonwithincomeundertheheadsofprofession,businessandothersources,shall,followingdeductionfromthetotalincomeofthereliefsasperSection(6)oftheIncomeTaxLaw,payincometaxaccordingtostrataontheremainderatthefollowingrates:
Sr. StrataofTaxableIncomeremainingafterdeductingprovidedreliefsfromIncome
IncomeTaxRate%
From ToKyat Kyat
(1) 1 2,000,000 0(2) 2,000,001 5,000,000 5(3) 5,000,001 10,000,000 10(4) 10,000,001 20,000,000 15(5) 20,000,001 30,000,000 20(6) 30,000,001andabove 25
d. NotwithstandinganyprovisionoftheIncomeTaxLaw,incometaxshallbeleviedseparatelyat10percentontotalincomereceivedbyanypersonfromleaseofland,buildingsorapartmentsafterdeductionofreliefsunderSection(6).Nofurtherassessmentshallbemadeincombinationwithotherincomes.State-Owned-Enterprises,businesses,companies,coopera-tivesoperatingunderMICpermitshallpayincometaxatratesseparatelystipulatedaccordingtothetypeofassessee.
e. TheratesofincometaxinthisSectionshallnotbeapplicabletoassesseesforwhomspecificratesofincometaxaccordingtoanyincomeearnerorclassofincomehavebeenprescribed.
20.TheamountofbasicreliefsunderSection(6)sub-section(a)sub-sub-sections(1)and(2)oftheIncome-taxLawshallbeequivalentto20percentofeachclassofincome.However,thetotalbasicreliefperyearshallnotexceedKyats100lakhs.
21.Incometaxshallbeleviedontheamountremainingafterdeductionofthefollowingrelieffromthetotalincomeoftheindividu-alunderSection(6)sub-section(c)sub-sub-section(2)oftheIncome-TaxLaw,withreliefforco-residentparentsbeinginsert-edinSection(6)sub-section(a)sub-sub-sections(1)and(2)oftheIncome-TaxLaw:
a. Kyats10lakhsforeachco-residentparent;
b. Kyats10lakhsforasinglespouseonly;
c. Kyats5lakhsperoffspring.
22.Incomereceivedabroadinforeigncurrencyofanon-residentcitizen,excludingexemptedincomeheads,shallbeleviedat10percentontotalincome,beforedeductingreliefsprovidedunderSection(6)and(6-A)oftheIncome-TaxLaw.
23.–
a. Withregardtothefollowingtypesofassesses,incometaxshallbeleviedat25percentontotalnetincomebeforededuc-tionofreliefsunderSection(6)oftheIncomeTaxLaw:
(1)AcompanyincorporatedintheUnionofMyanmarundertheMyanmarCompaniesActorunderthe1950SpecialCompa-niesAct.
(2)IncomeotherthanundertheheadingofsalaryofNon-residentforeigner.
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(3)EnterprisecarriedonunderMyanmarInvestmentCommission’sPermit.
(4)State-OwnedEconomicenterprises.
b. Cooperativesocietiesotherthanprimaryones,shallbeleviedincometaxat25%uponincomeremainingafterdeductingfromnetprofitsthereliefsprovidedinSection(6)oftheIncome-TaxLaw.
24.NodeductionasperSection(6)and(6-A)oftheIncome-TaxLawshallbemadeincaseofanon-residentforeigner.IncometaxshallbeleviedatthetaxratesspecifiedinSection(19)sub-section(a)ofthisLawonincomeundertheheadingofsalaryonofthetotalincomeofsuchperson.
25.Income-taxshallbeleviedat30percentonincomethathasescapedassessment,beforedeductingreliefsprovidedunderSection(6)and(6-A)oftheIncome-TaxLaw.However,withregardtoincomeutilizedbyanycitizeninpurchase,developmentoracquirementofanycapitalasset,establishmentofnewbusinessorexpansionofbusiness,income-taxshallbeleviedatthefollowingrateontheincomethathasescapedassessmentremainingafterdeduction,fromtheamountutilized,oftheamountforwhichsourceofincomecanbeshown,orontheincomeutilizedifnosourceofincomecanbeshown.Whereexactsourceofincomecanbeshownforalloftheincomeutilized,noincome-taxneedtobelevied.TheassessmentoftaxunderthisSec-tionshallnotberelevanttopossessionofordealinginpropertyacquiredthroughunlawfulmeans,andtomattersoflegalac-tionsundertheAnti-Money-LaunderingLaw:
Income(Kyats) IncomeTaxRate%
a. 1 30,000,000 15
b. 30,000,001 100,000,000 20
c. 100,000,001andabove 30
Primarycooperativesocieties,incorporatedundertheCooperativeSocietiesLaw,shallbeleviedincome-taxatincometaxratesspecifiedinSection(19)sub-section(c)hereinupontheincomeremainingafterdeductingfromnetprofitsthereliefspro-videdinSection(6)oftheIncome-TaxLaw.
26.UponcapitalgainsinKyatsorforeigncurrencythroughsale,exchangeortransferthroughanyothermeansofoneormorecapitalassets,beforedeductingreliefsprovidedunderSection(6)and(6-A)oftheIncome-taxLaw,:
a. Income-taxshallbeleviedincurrencyreceivedatthefollowingrespectiveratesshownadjacenttotheamountofgains,forcompaniesparticipatingtotheoilandgassectoroftheUnionofMyanmar:
Capital Gains RateofIncomeTax
a. UptoequivalentofKyats100,000million 40%
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b.FromequivalentofKyats100,001milliontoKyats150,000million 45%
c. AboveequivalentofKyats150,001million 50%
Income-taxshallbeleviedat10percentontheamountofgainsinKyatsorforeigncurrency,forindividualsorentitiesotherthancompaniesparticipatingintheoilandgassectoroftheUnionofMyanmar.Non-residentforeignersshallpaythetaxassessedinthecurrencyreceived.
27.Noincome-taxshallbeimposedonsale,exchangeortransferthroughanyothermeansofoneormorecapitalasset(s),inthecasethattotalvalueofthecapitalasset(s)transactedinoneyeardoesnotexceedKyats100lakhs,evenifcapitalgainsarise.
28.Newlyestablishedsmallormediumindustrialenterprisesshallnotpayincome-taxonnetprofitnotexceedingKyats100lakhsinthreeconsecutiveyearsincludingtheyearofcommencementofbusiness.Incaseofincomeexceedingthesaidamount,in-come-taxshallbeassessedonlyontheamountinexcess.
29.Forincomeinforeigncurrencyunderanyheadingotherthancapitalgains,income-taxshallbecomputedasprovidedinIn-come-taxRegulation(8),andpaidinKyatsincaseofresidentcitizenorresidentforeigner,andintheforeigncurrencyreceivedincaseofanon-residentforeigner.
30.-
a. Income-taxisexemptonanyincomeorclassofincomegivenbelow:
(1)UptoKyats100lakhsofthetotalawardmoneyreceived,inasingleinstanceormultipleinstances,withintheincomeyearaccordingtotheprogrammeofawardsonseizuresundertheNarcoticDrugsandPsychotropicSubstancesLaw;
(2)UptoKyats100lakhsofthetotalawardmoneyreceived,inasingleinstanceormultipleinstances,withintheincomeyearaccordingtotheprogrammeofawardsonseizuresofcontraband;
(3)MoneyreceivedtogetherwithhonorarytitlesorinsigniaawardedbytheState;
(4)Salaryincomeinforeigncurrencyofanon-residentcitizen;
(5)Proceedsfromwinninggovernmentlottery.
(6)Pensionandgratuitiesreceivedonretirementofpublicservicepersonnel.
b. TheMinistryofPlanningandFinancehasthepowertograntrelieforexemptiononincometaxinrespectofthefollowing:
(1)Incometaxmattersrelatedtoactivitiescarriedonwithdonationsorassistanceprovidedbydomesticorforeignentities;
(2)IncometaxmattersrelatedtopubliccompanieslistedontheYangonStockExchange,withobjectiveofpromptingdevel-dopmentofthestocksandsharesmarket.
31.TheexpressionscontainedinChapter(7)ofthisLawshallhavethesamemeaningasprovidedintheIncome-taxLaw.
Chapter8.Ratesforothertaxes
33.RelevantMinistriesshallarrangeinaccordancewithprevailinglawtheratestobeimposed,exemptionsandreliefsforthefol-lowing taxes:
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a.Excisetax;
b. Importlicenseandpermitfees;
c. Nationallottery;
d. Feesinrespectofmotor-vehicles,driver-licenses,businesslicenses;
e. Stampduties;
f. Taxonnucleusinsertionofoysters;
g.Customduties;
h. Landrevenue;
i. Watertax;
j. Reservoir/irrigationtax;
k. Taxonextractionofforestproduce;
l. Taxonextractionofminerals(excludingindustrialraw-materialmineralsanddecorativerocks);
m.Fisheriestax;
n.Oilandgasextractiontax;
o.Metalsandgemstax;
p. Communicationservicestax;
q. ElectricpowerreceivedgratisinrespectofextractionofHydro-ElectricalPower;
r. Feesfromtours,hotel,motel,innslicenses;touristtransportation/tourguidelicenses.
34.Enterprisesengagedinextractionofunpolishedjade,ruby,sapphire,emerald,diamondandothergems;manufactureandtradingofpolishedgemsandjewelleriesshall:
a. pay,onproceedsinKyatsorforeignexchangefromsaleofgemsorjewellery:
(1)SpecialGoodsTaxattheratesspecifiedinSection(11)ofthisLaw.
(2)Commercialtaxatfivepercentinrespectofimport,manufactureanddistribution,andtradingunderSection(14)sub-sections(b)and(c)ofthisLaw.
(3)Theprovisionundersub-sub-section(2)shallnotberelevanttothestipulationoftheamountofun-assessablesalesproceeds.
b. Incometaxshallbeassessedattheratesofincome-taxprescribedinthisLawonthetotalnetprofitswithintheincomeyear.
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Chapter9.Miscellaneous
34.UnionGovernmentmayasneededbynotificationformandassignbodiestosupporttaxcollection.
35.WithoutcontraveninginternationalagreementsenteredintobytheState,theUnionGovernmentCabinetshallcarryoutthefol-lowinginordertoenablecompetitivenessofgoodsproducedwithintheStateagainstimportedgoods;long-terminterestofdo-mesticagriculturalandanimalhusbandryenterprisesdependingmainlyondomesticproductionenterprisesanddomesticandforeigninvestmententerprisesoperatingwithintheState:
a. Obtainingmaximumrightsandreliefsinrespectofimportvolumeandcustomdutyratesinthesamemannerasother ASEANcountries,withintheframeworkofglobaltradeandASEANtradeagreements;
b. ProvidingnecessaryarrangementseitherinaccordancewithprovisionsofCustomsLaworinaccordancewithproceduralprovisionsrelatedtoimport-exportallowances/permitsandallocations/quotas.
37.–
a. Inorderthatpersonsliablefortaxespaytheminaccordancewiththelaw,theInternalRevenueDepartmentshalleducateandencouragethepeople,informthemoftheexemptionsandreliefsthatmaybeenjoyed,andexplainandprovidesuchex-emptionsandreliefsatthetimeofcollection,arrangeforrecognitionandsuitableawardstotax-payers.
b. Inordertoimplementthemattersunderabovesub-section(a)towardreformofthetaxsystem,theMinistryofPlanningandFinancemayinaccordancewithfinancialproceduresallocateascurrentexpenditureoftheInternalRevenueDepartmentintheUnionBudgetLaw.
c. TheMinistryofPlanningandFinancemayinaccordancewithfinancialproceduresusetheexpenditureallottedundersub-section(b)tograntbonusestocivilservicepersonnelwhohavefullydischargedtheirfunctionalduties.
38.TwentypercentandthirtypercentoffinescollectedunderSection(22)sub-section(c)oftheSpecialGoodsTaxLawforpos-sessionofspecialgoodswithunpaidtaxshallbegivenasrewardtotheinformantandtothesearchandarrestteamrespec-tively.Identityofnoinformantshallbedisclosedexceptforgovernmentbusiness.
----------
Signed bymeundertheConstitutionoftheRepublicoftheUnionofMyanmar.(by)HtinKyaw
UnionPresidentRepublicoftheUnionofMyanmar
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Table (1) Original Amounts of Union Taxes budgeted for Collection in the Fiscal Year 2017-2018
(Kyatmillions)
Sr. Responsible Ministries of the Union Government Cabinet
Description 2017-2018 Estimate
1 Taxes on domestic product and consumption 2,712,666,8841 MinistryofHomeAffairs ExciseTax 940,3112 MinistryofFinance CommercialTax 1,752,443,2323 MinistryofCommerce Licensefeesforimports 5,000,0004 MinistryofPlanningandFinance National Lottery 47,356,2585 MinistryofTransportandCommunication Feesforvehicles,driver-license,andbusi-
nesslicenses170,580,000
6 MinistryofPlanningandFinance StampDuties 47,689,3127 MinistryofNaturalResourcesandEnvi-
ronmentalConservationTaxonnucleusinsertionofoysters 640,000
8 MinistryofHotel&Tourism Feesfromtour,hotel,motel,innlicenses;touristtransportationlicenses;
717,840
9 MinistryofPlanningandFinance SpecialGoodsTax 687,299,9312 Taxes on income and property 2,382,000,000
1 MinistryofPlanningandFinance IncomeTax 2,382,000,000
3 Custom Duties 490,000,0001 MinistryofPlanningandFinance Customduties 490,000,000
4 Taxes on extraction of State-owned resources 896,332,0061 MinistryofHomeAffairs Landrevenue 1,4852 NayPyiTawCouncil Water Tax 95,1183 MinistryofHomeAffairs ReservoirTax 0.0254 MinistryofNaturalResourcesandEnvi-
ronmentalConservationTaxonextractionofforestproduce 2,296,775
5 MinistryofHomeAffairs Taxonextractionofminerals(excludingindustrialraw-materialmineralsanddecorativerocks)
3,855
6 MinistryofAgriculture,Livestockand Irrigation
FisheriesTax 1,503,800
7 MinistryofElectricityandEnergy Oil and Gas Tax 278,623,086
8 MinistryofNaturalResourcesandEnvi-ronmentalConservation
Mineral and Gems Tax 27,143,542
9 MinistryofTransportandCommunication Taxontelecommunicationservices 576,248,00010 MinistryofElectricityandEnergy TaxonHydro-ElectricPowerExtraction 10,426,320
Total 6,481,008,890
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AnnexIII-UnofficialEnglishTranslation(DRAFT) Law Amending Special-Goods Tax Law
1. TheLawshallbeknownastheLawAmendingSpecial-GoodsTaxLaw.
2. TheprovisionsofthisLawshallbeeffectiveovertheentiretyoftheUnionwitheffectfromtheFiscalYear2017-2018.
3. InSection(3)oftheSpecial-GoodsTaxLaw:
a. insub-section(d)-theexpression{manufactureof}“Special-Goods”shallbereplacedwiththeexpression{manufactureof}“Special-Goods excluding dealing in gems”;andtheexpression“includesnotonlyvariousstagesofmanufactureofgoods”shallbereplacedwiththeexpression“includesnotonlyvariousstagesofmanufacture,repair, installation or extraction of goods, whether manually or by machine”.
b. insub-section(d)sub-sub-section(3)-theexpression{OtherSpecial-Goods}“extractionor{...}eithermanually”shallbereplacedwiththe expression {OtherSpecial-Goods}“manufacturing,extractionor{...}eithermanually”.
c. insub-section(g)-theexpression{credit}“ordeferredpayment”shallbereplacedwiththeexpression{credit}“ordeferredpay-ment or barter system”.
d. insub-section(h)-theexpression“authorizedby{owner}ormanufacturerofSpecial-Goods”shallbereplacedwiththeexpres-sion“authorizedby{owner} , importer, manufacturer,exporter or gem dealerofSpecial-Goods”.
e. insub-section(j)-theexpression{of}“imported”{Special-Goodsmeans}shallbereplacedwiththeexpression{ofSpecial-Goods}“brought into the country”{means}.
f. insub-section(l)-theexpression“{and}whichdoesnotincludetax”{payableunderthisLaw}shallbereplacedwiththeexpression“, in-clusive of tax”{payableunderthisLaw}.
g. insub-section(m)-theexpression“inaccordanceasprescribed”shallbereplacedwiththeexpression“in accordance with method prescribed by the Director-General”.
h. insub-section(m)-theexpression“inrespectofmanufactureandsaleofSpecial-Goodsalreadymanufacturedbyhim”shallbereplacedwiththeexpression“in respect of Special-Goods Tax payable by manufacturer, manufacturer-dis-tributer, exporter, gem dealer”.
i. insub-section(q)-theexpression“MinistryofFinance”shallbereplacedwiththeexpression“Ministry of Planning and Fi-nance”.
j. sub-sections(u),(v)(w),(x),(y),(z),(aa),(bb)shallbeinsertedaftersub-section(t)asfollows:
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“u.ExportermeansanexporterofSpecial-Goods.
v.GemmeansgemasdefinedinMyanmarGemsLaw.
w.GemMerchantmeansanypersonwhodealsinjadeandgemswithintheUnion.
x.DutyStampmeansanylabelorothersupportingdocumentaffixedoremployedunderSection(34)ofthisLawinrespectofSpecial-Goods.
y.BusinessPremisesmeanthecompoundofabusinessorbranchregisteredunderthisLaw.
z.AnnexedScheduleofthisLawmeanstheSpecial-GoodsSchedulecontainedintheSpecial-GoodsChapteroftheUnion Tariffs Law.
aa.FormsmeanformsprescribedpursuanttothedutiesandpowersoftheDirector-GeneralunderthisLaw.
bb.Value-Grademeansthepricevalue-gradeofSpecial-GoodsstipulatedintheUnionTariffsLawaccordingtofiscalyear.”
4. InS-section(d)shallbeinsertedasfollowsafterSection(4)sub-section(c)oftheSpecial-GoodsTaxLaw:
“d.Inmattersconcerninggems,taxshallbeassessedondealingingemsinadditiontocarryoutaspersub-section(a).”
6. Sub-section(d)shallbeinsertedasfollowsafterSection(4)sub-section(c)oftheSpecial-GoodsTaxLaw:
“d.Incaseofdealingingems,thesellershallpay[thetax].
e.IncaseofpossessionofSpecial-Goodsonwhichtaxhadnotbeenpaid,thepersonhavingsuchpossessionshallpay[thetax].”
7. Section(6)oftheSpecial-GoodsTaxLawshallbereplacedwiththefollowing:
“a.Foranyyear,bymeansoftheUnionTariffsLawpromulgatedaccordingtoFiscalYear:
(1)[thelistof]Special-Goodsforwhichtaxisassessablemaybeamended(changed,supplementedordeleted).
(2)ratesoftaxtobeutilizedincomputationsshallbestipulatedfortaxassessableSpecial-Goodsbasedonvalue,quantity,weightorothermeasurement.
(3)typesofSpecial-Goodsandratesoftaxshallbestipulatedforexports.
b. -
(1)AmanufacturerorimporterofSpecial-GoodsshallapplythroughthenRevenueOfficertotheDirector-Generalfordeter-minationofValue-GradeoftheSpecial-Goodsmanufacturedorimportedbyhim.
(2)TheDirector-Generalmayprescribetheapplicationformandmethodofapplication.
35
(3)TheDirector-GeneralshalldetermineasprescribedtheValue-GradesofSpecial-Goodsfortherelevantfiscalyear.
(4)ASpecial-GoodsforwhichValue-Gradehavenotbeendetermined,maybedeterminedashighestValue-GradeunlesstheDirector-GeneraldeterminesotherappropriateValue-Grade.“
8. Section(7)oftheSpecial-GoodsTaxLawshallbereplacedwiththefollowing:
“a.InrespectofSpecial-GoodstaxableunderSection(4),computationsshallbecarriedoututilizingthetaxratewhichisdeter-minedbasedonthevalue,quantity,weightorothermeasurementatthefollowingdate:
(1)Incaseofimportorexport,thedateofcustomclearanceofsuchSpecial-Goods;
(2)IncaseofSpecial-Goodsmanufactureddomestically:
(aa) thedateofmanufactureoftheSpecial-Goods,incaseoftheirbeingthoseprescribedbynotificationoftheMinistryfortaxbasedonmanufacture;
(bb) thedateofsaleoftheSpecial-GoodsincaseofremainingSpecial-Goods;
(3)thedateofdiscovery,incaseofdiscoverythroughinvestigationofpossessionofSpecial-GoodsforwhichtaxunderthisLaw has not been assessed.
EXPLANATION.Special-GoodsforwhichtaxunderthisLawhasnotbeenassessedmeanthefollowing:
a. thoseprescribedtobeaffixedwithDutyStampsbutarenotsoaffixedasprescribed;
b. withregardstotheremainingSpecial-Goods,thoseimportedwithoutregistrationasprescribed;thoseimport-ednotfromanauthorizedimporter;thosemanufacturedorextractedwithoutbeinginaccordancewithprescribed[procedure];thosepurchasedfromauthorizedmanufacturedorextractorbuforwhichfullsupportingdocumentsoftaxpaymentcannotbepresented.
(4)thedateofsale,incaseofdealingingems;
(5)othersuitablemethodsasprescribedbytheDirector-General, inadditiontoprovisionsofsub-sub-sections(2),(3)and(4).
b.ComputationoftheamountofSpecial-GoodsTaxpayableshallbebasedonthefollowingvalues:
(1)Landed-ValueincaseofbeingimportedSpecial-Goods;
(2)ForSpecial-Goodsmanufactureddomestically:
(aa) theEx-FactorypriceapprovedfortherelevantfiscalyearbytheDirector-GeneralandtheManagementCommitteeoftheInternalRevenueDepartment,incaseofbeingprescribedthroughNotificationoftheMinistrytoassesstaxonmanufacture;
(bb) whicheverisgreaterbetweentheEx-FactorypricessubmittedbythemanufactureranddeterminedbytheDirec-tor-GeneralortheTownshipRevenueOfficer;
(3)FreeOnBoard(FOB)price,incaseofexportedSpecial-Goods;
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(4)salepriceormarketpriceatthetimeofdiscoveryincaseofSpecial-GoodsforwhichtaxunderthisLawhasnotbeenas-sessed,discovereduponinvestigationatthetheirpossessor;
(5)thevaluecomputedaccordingmethodsprescribedbytheDirector-General,incaseswhereitisdifficulttocomplywiththeprovisionsofsub-sub-section(4);
(6)saleproceedsincaseofdealingingems.”
9. Section(8)sub-section(a)oftheSpecial-GoodsTaxLawshallbereplacedwiththefollowing:
“a.AnypersonassessedwithtaxunderthisLawshallmakepaymentasfollows:
(1)incaseofimportofSpecial-Goods,beforeclearance;
(2)incaseofdomesticmanufactureofSpecial-Goods:
(aa) incaseofSpecial-GoodsprescribedbynotificationoftheMinistryfortaxbasedonmanufacture,withintendaysafterthemonthofmanufactureofsuchSpecial-Goods;
(bb) incaseofremainingSpecial-Goods,withintendaysafterthemonthinwhichtheyaresold.
(3)incaseofexport,withintendaysafterthemonthinwhichtheyareexported.
(4)incaseofdiscoverythroughinvestigationofpossessionofSpecial-GoodsforwhichtaxunderthisLawhasnotbeenas-sessed,withinsevendaysofsuchdiscoverybysuchpersonhavingpossession;
(5)incaseofdealingingems,withintendaysafterthemonthofsale.”
10.InSection(9)oftheSpecial-GoodsTaxLaw:
a. sub-section(a)sub-sub-sections(2),(3)and(4)shallbereplacedwiththefollowing:
“(2)Special-GoodssoldtotravellersfromDuty-freeOutlets,otherthanSpecial-Goodsprescribedtobeassessedtaxonexport;
(3)Special-Goodssoldon-boardaircraftorvesselplyingforeignroute,otherthanSpecial-Goodsprescribedtobeas-sessedtaxonexport;
(4)Special-Goodsimportedtemporarilywithobjectiveofre-exporting;”
b. sub-section(b)sub-sub-section(3)shallbereplacedwiththefollowing:
“(3)Special-GoodsmanufacturedbyselforimportedorprocuredbysecurityanddefenceforcesoftheUnion,otherthanlogsorconversionsofteakorhardwoodhavingten-inchorgreatercircumference,jade,ruby,sapphire,emerald,dia-mondandothervaluablegemsinunpolishedorpolishedstate.”
11.Section(10)sub-section(a)oftheSpecial-GoodsTaxLawshallbereplacedwiththefollowing:
“a.complianceproceduresrelatedtoSpecial-Goodsimportedtemporarilywithobjectiveofre-exportingtothecountryfromwhichtheywereoriginallyimportedintheiroriginalmagnitudesandconditions;”
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12.Section(11)oftheSpecial-GoodsTaxLawshallbereplacedwiththefollowing:
“11. -
a.AmanufacturerorexporterofSpecial-Goodsmay,fromtaxassessed,offsettaxalreadypaidattimeofpurchasefromanotherSpecial-GoodsmanufacturerorimportbyselfofSpecial-GoodsforpurposeofexportormanufactureofhisSpe-cial-Goods.
b.Offsettingoftaxonpaymentshallbecarriedoutasprescribedinordertoavoiddouble-taxation.
c. Nooffsettingoftaxshallbeallowedformanufactureandsaleordealingingems.
d.However,incaseofre-purchaseandexportbyself,ofgemsoldbyselfataMyanmaGemsFairheldundergovernmentalauspices,thetaxpaidatthetimeofre-purchasebyselfatthesaidFairmaybeoffsetfromthetaxassessedforexport.”
13.TheintroductorytextofSection(12)oftheSpecial-GoodsTaxLawshallbereplacedwiththefollowing:
“12. TheDirector-Generalshallexercisethefollowingpowersandresponsibilities;andmaydelegatethedischarge[/exercise]ofthesaidpowersandresponsibilitiestoanyindividualortocommittees/groups:”
14._
a. TheintroductorytextofSection(13)oftheSpecial-GoodsTaxLawshallbereplacedwiththefollowing:
“Anindividualorcommittee/groupdelegatedwithanypowerorresponsibilityunderSection(12)bytheDirector-General:”
b. Section(13)sub-section(b)oftheSpecial-GoodsTaxLawshallbereplacedwiththefollowing:
“b.maystopandinspecttransportationvehiclesabouttodepartanywarehouseorbusinesspremisesrelatedtoSpecial-GoodsorwhiletransportingSpecial-Goods.”
c. InSection(13)sub-section(d)oftheSpecial-GoodsTaxLaw-theexpression“manufacturer”shallbereplacedwiththeex-pression“importer, manufacturer, exporter or gem dealer”.
15.InSection(14)oftheSpecial-GoodsTaxLaw–theexpression“certified identity card or”shallbeinsertedinfrontoftheex-pression“documentation.
16.InSection(15)oftheSpecial-GoodsTaxLaw:
a. eachexpressionof“manufacturerofSpecial-Goods”insub-section(a)andsub-section(b)shallbereplacedwiththeex-pression“importer,manufacturer,exporterofSpecial-Goods,gemsdealer”.
b. sub-section(c)shallbereplacedwiththefollowing:
“c.Withregardstoanapplicationforregistrationofbusinessundersub-section(a)or(b),theTownshipRevenueOfficershallafterscrutinyasprescribed,issuebusinessregistrationfortherelevantFiscalYear.”
c. sub-section(d)shallbeinsertedasfollowsaftersub-section(c):
“d.Aregisteredimporter,manufacturer,exporterofSpecial-Goods,gemsdealershallreneweachyearthebusinessregis-trationissuedaccordingtorelevantfiscalyear.”
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17.Section(16)oftheSpecial-GoodsTaxLawshallbereplacedwiththefollowing:
“a.AmanufacturerwhodomesticallymanufacturestaxableSpecial-GoodsorimporteroftaxableSpecial-Goodsorgemsdeal-ershallpaytheduetaxesasperSection(8)oftheSpecial-GoodsTaxLaw,andalsosendthequarterlydeclaration-formformanufacture,manufactureandsale,exportofSpecial-GoodsanddealingingemstotheTownshipRevenueOfficer,withintendaysafterthecompletionoftherespectivequarter.”
b.TheTownshipRevenueOfficernotifyanypersontopayduetaxesandtosendquarterlydeclaration-formiftheTownshipRevenueOfficerhasgroundsforbelievingthatsuchpersonismanufacturing,exportingtaxableSpecial-Goodsordealingin gems.
c.AnimporteroftaxableSpecial-GoodsshallsubmitalistofimportedSpecial-GoodstotheCustomsDepartmentbeforeclearancefromtheCustomsDepartment.”
18.Section(17)oftheSpecial-GoodsTaxLawshallbereplacedwiththefollowing:
“a.IftheTownshipRevenueOfficerissatisfiedthatthedeclaration-formsentasperSection(16)sub-sections(a)and(b)iscompleteandcorrectastotherelatedSpecial-Goods,taxshallbeassessedbasedonsuchdeclaration-form.”
b.IftheTownshipRevenueOfficerhasgroundstobelievethattrueamountoftaxcannotbeobtainedfromthedatacon-tainedinthedeclaration-formreceivedinrespectofmanufacture,manufactureandsale,exportofSpecial-Goods,dealingingems,taxmaybeassessedthroughexaminationotherevidenceasmayberequired.
c.Incaseoffailuretosenddeclaration-formconcerningmanufacture,manufactureandsale,exportofSpecial-Goods,dealingingems,theTownshipRevenueOfficershallassesstaxbasedoninformationreceived.
d.Theassessmentoftaxonmanufacture,manufactureandsale,exportofSpecial-Goods,dealingingem,shallbecarriedoutonthemanufacturer,exporter,gemsdealerwithinthemonththedeclarationformunderSection(16)sub-section(a)isfiled.[TheTownshipRevenueOfficer]maysummonandexamine,anddemandinformationfromanypersonpriortoassessmentoftax.”
19.InSection(18)oftheSpecial-GoodsTaxLaw–theexpression“isentitledtorequest{refunds}onlywithinoneyear“shallbere-placedwiththeexpression“is entitled only for one year to request reimbursement or offsetting or determination as tax payable and outstanding in respect of such refunds.”.
20.InSection(21)sub-section(f)sub-sub-section(2)oftheSpecial-GoodsTaxLaw–theexpression“fiftypercentoftaxas-sessed”shallbereplacedwiththeexpression“fifty per cent of the tax payable in addition.”
21.InSection(22)oftheSpecial-GoodsTaxLaw:
a. insub-section(b)–theexpression“intime”shallbereplacedwiththeexpression“s”.
b. insub-section(c)–theexpression“by person having possession”shallbeinsertedat“PaymentofonehundredpercentofvalueofSpecial-Goodswithunpaidtaxfoundinpossession“.
c. insub-section(d)–theexpression“by additionally assessed”shallbeinsertedbeforetheexpression“taxdue”.
d. sub-section(e)shallbereplacedasfollows:
“e.Tenpercentofadditionallyassessedduetaxincaseoffailuresubmitquarterlydeclaration-formintime.”
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e. sub-section(f)shallbereplacedasfollows:
“f.FiftypercentofvalueofSpecial-GoodsfoundoninspectionbyTownshipRevenueOfficer,withfailuretoaffixprescribeddutystampsasstatutorilyrequired,tobepaidbythemanufacturerofSpecial-Goods”.
22.InSection(23)sub-section(c)andSection(25)sub-section(a)oftheSpecial-GoodsTaxLaw,theexpression“manufacturedquantity”shallbereplacewiththeexpression“quantity [of Special-Goods] manufactured, imported, exported or gems dealt with locally”.
23.Section(33)sub-section(a)oftheSpecial-GoodsTaxLawshallbereplacedwiththefollowing:
“A. AmountscollectedforimportofSpecial-Goods,fromState-OwnedEnterprisesandWorkplacesmaybecreditedtothebudgetoftherelevantRegion/stateinaccordancewiththepercentagedeterminedbytheUnionGovernmentCabinet.”
24.Section(37)shallbeinsertedasfollowsafterSection(36)oftheSpecial-GoodsTaxLaw:
“37. Withregardstothefollowingmatters,Special-GoodstaxshallbedeemedaspaidiftheDirector-Generalissosatisfied:
a.Commercial-Taxhasbeenpaidinaccordancewith1990CommercialTaxLaw,2014UnionTariffsLawor2015UnionTariffsLaw,inrespectofgoodsimportedormanufacturedpriortothedateof1-4-2016;
b. thegoodsarenotliableforCommercialTax,beingmanufacturedorimportedbeforecomingintoforceofthe1990Com-mercialTaxLaw;
c. theSpecial-Goodsaretaxexempt(forexample,goodsasperSection(9)sub-section(a)sub-sub-section(1)ofthisLaw).”
25.TheintroductorytexttotheAnnexScheduleoftheSpecial-GoodsTaxLawshallbedeleted.
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AnnexIV-UnofficialEnglishTranslationGovernmentoftheRepublicoftheUnionofMyanmar
MinistryofPlanningandFinance Minister’sOffice
Notification 6/2017January11,2017
100968
13-1-17
Procedures for legal action against imports in contravention of license, specificationsExercisingthepowersconferredbySection(204b)oftheSeaCustomsAct,theMinistryofPlanningandFinanceherebyissuesthefollowingprocedures,withtheapprovaloftheUnionGovernmentCabinet.
Chapter1.Title,Effective-DateandDefinitions
1. –
a. TheseProceduresshallbeknownastheProceduresforlegalactionagainstimportsincontraventionoflicense,specifications.
b. TheseProceduresshallcomeintoforceonthecompletionof60-daysaftertheissuanceofthisNotification.
2. TheexpressioncontainedintheseProceduresshallhavethesamemeaningasdefinedintheSeaCustomsActandtheLandCustomsAct.Furthermore,thefollowingexpressionsshallhavethemeaningsgivenhereunder:
a. Union MinistermeanstheUnionMinisteroftheMinistryofPlanningandFinance.
b. Director GeneralmeanstheDirectorGeneraloftheCustomsDepartment.
c. ImportLicence(IL),Import Permit(IP)meansimportlicence,permitapprovedandissuedbytheDepartmentofTradeforimport of goods.
d. Term of import licence,permitmeanstheperiodcommencingthedateofissueoftheimportlicencebytheDepartmentofTrade,andtheLastDateofImportspecifiedonsaidlicense.
e. Date of Arrival of Goodsmeanthedateofarrival/berthingofthevesselcarryingsuchgoodsattheprescribedport/loca-tion,asconfirmedbyrelevantdepartments.
f. Prior Arrivalmeansarrivalofimportedgoodsattheprescribedport/locationpriortothedateofissueofimportlicencebythe Department of Trade.
g. After Landed Correction (ALC) of ManifestmeansthedateoftelexfromShippernotifyingforcorrectionofmanifestislat-erthanthedateofArrivalofGoods.
Chapter2.LegalActionagainstImports
3. GoodsimportedintotheUnionofMyanmarwithoutanydocumentsofpermissionincontraventionofprohibitionsorregulatoryrestrictionsshallbeliableforconfiscationunderSection167(8)oftheSeaCustomsActandSection7(1)oftheLandCustomsAct;andanypersoninvolvedinsuchoffenceshallbeliableforpaymentofafinenotexceedingthreetimesthevalueofcus-tomsdutiesonsuchgoods,intheabsenceofwhich,thesaidpersonmaybechargedbeforeajusticeofthecriminalproceed-ingscourt,andshallbeliableforaprisontermnotexceedingthreeyearsuponconviction.
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4. Withregardtotheconfiscatedgoods,theownerofthegoodsshallapplyunderSection(183)oftheSeaCustomsActtotheDi-rectorGeneraltobeallowedinsteadtotakepossessionofthemagainstpaymentofappropriatemonetarypenalties.Depend-ingonthemagnitudeoftheoffence,theDirectorGeneralmayallowre-possessingofthegoods.
5. TheDirectorGeneralshallcomplywiththeannexedscheduleinrespectofprescribingoffinesagainstmotor-vehicles,ma-chinesandgeneralgoodsimportedincontraventionoflicenceandrestrictions.LegalactionwillbetakenundertheSeaCus-tomsActandtheLandCustomsActagainstimportofprohibitedgoods.
Chapter3. Miscellaneous
6. AnypersonaggrievedwithanyorderordecisionmadebyaCustomsOfficerundertheSeaCustomsAct,maywithinonemonthofsuchruling,lodgeanappealinaccordancewithSection(188)andSection(189)oftheSeaCustomsAct.
7. ACustomsValuationmadeinaccordancewithCustomsValuationRegulations,willbedeterminedastheassessablevalueinaccordancewiththesixcriteriacontainedintheWTOValuationMethod.
8. TheUnionMinisterhasthepowertoamendorcanceltheseProceduresfromtimetotimewiththeapprovaloftheUnionGovernment.Kyaw Win
Union Minister
----------
LetterNo.:SaBa/Banda-1/3/1(300/2017)Date:January11,2017DistributionOfficeoftheUnionPresidentOfficeoftheUnionGovernmentCabinetOfficeoftheUnionParliamentOfficeofthePeople’sParliamentOfficeoftheNationalParliamentOfficeoftheUnionSupremeCourtOfficeoftheConstitutionalTribunalUnionElectionCommissionAll Union MinistriesOfficeoftheUnionAttorneyGeneralOfficeoftheUnionAuditorGeneralUnionPublicServiceCommissionCentralBankofMyanmarNayPyiTawCouncilMyanmarInvestmentCommissionYangonCityDevelopmentCommitteeMandalayCityDevelopmentCommitteeCustomsDepartmentAlldepartments,organizationsundertheMinistryofPlanningandFinancePrintingandPublishingEnterprise,withrequestforpublishingintheUnionofMyanmarGazette.ThisMinister’sOffice,FilingRoom
By Order_signed_
(for)UnionMinister(MaungMaungWin,DeputyMinister)
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Prescribing of penalties on
vehicles/machines imported normally, on motor-vehicles imported under projects and general goods
Sr. Offense Description
Vehicles/machinesim-ported normally, motor-vehiclesimportedun-derprojectsPenalty
General Good
Penalty
Remarks
1. DiscrepancyofMain Brand
Forexample:incaseofmotor-vehicles,theactualbrandimport-ed is Nissan, when the brandapprovedinIL/IP/ID is Toyota.Incaseofmachines,theactualbrandimportedis Caterpillar, when the brandapprovedinIL/IP/ID is Komatsu.
Confiscation 1/2AV
2. Brand(NotFound) Forexample:incaseofmotor-vehicles,theactualbrandimport-ed is Nissan, when the brandapprovedinIL/IP/ID is Toyota.Incaseofmachines,theactualbrandimportedis Caterpillar, when the brandapprovedinIL/IP/ID is Komatsu.
Confiscation 1AV
Exemptionfromfineifthebrandcanbeestablishedthroughexaminationofsupportingevidenceofbrandspecifications.
3. CountryofOrigin(NotFound)
Confiscation 1AV ExemptionfromfineiftheC/OcanbeestablishedthroughexaminationofsupportingevidenceofC/O.
4. DiscrepancyofSub-Brand
Forexample:incaseofmotor-vehi-cles,theactualimportedis Toyota Belta, when the brandapprovedinIL/IP/ID is Toyota Corolla.Incaseofmachines,dis-crepancybetweentheModel Number ap-provedinIL/IP/IDandtheModelNumberactual-ly imported.
1AV Exempt
1AVisanappropriatefine,asitisofficialim-port with same brand and same type.
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Sr. Offense Description
Vehicles/machinesim-ported normally, motor-vehiclesimportedun-derprojectsPenalty
General Good
Penalty
Remarks
5. DiscrepancyofType Forexample,incaseofmotor-vehicles:Discrepancybetweenor-dinary Truck and Box Truck; discrepancybe-tween Saloon and Van;
1/2AV 1/90AV
Thispenaltyisfordiscrep-ancyintypeonlywiththemotor-vehicleclassifica-tion remaining the same. Valueistobeassessedbasedontheactualvehi-cleimported.Import Without Body Confiscation
6. Discrepancyofclassification
Forexample:SaloonversusBus;HaulerversusBus and so on.
Confiscation
Vehiclestobeclassi-fiedwithconfirmationofKa.Nya.Na(saloon,bus,hauler,operational,ma-chines)
7. Import of model ear-lier (older/lower) than thelowestboundofModel Year range im-posed by Ministry ofCommerce
1-yearearlier Confiscation Model Year will be deter-mined based on Chas-sisCode/VinCode.Ifnotpossible, it will be deter-minedaccordingtoanal-ysisandconfirmationof Ka.Nya.Na.Assessment to be made basedonconfirmedMdl Year.IftheChassisNo/VinCode had been tampered with,[thevehicle]willbeconfiscated,regardlessofwhetheritcomplieswithprescribedbounds.
2-yearsormoreearlier Confiscation
Earlierbutwithinpre-scribedyearlimits 1/24AV
8. Import of model lat-er (newer/higher) than theboundofMod-el Year range im-posed by Ministry ofCommerce
Laterbutwithinpre-scribedyearlimits
Laterthanprescribedyearbound
9. DiscrepancyfromIL/IP/ID
P.O.Ldiscrepancy Exempt Exempt
P.O.Ddiscrepancy Exempt Exempt
Country of Ori-gindiscrepancy
1/90AV 1/180AVAssessableValuetobeconfirmedbasedonactualCountryofOrigin.
DiscrepancyofCapaci-ty Weightincaseofve-hicles/machines;discrep-ancyofWeightincaseofGeneral Goods.
MMK100,000/ton ExemptAssessableValuetobeconfirmedbasedonactualCapacityWeight.
DiscrepancyofVehicle Weightincaseofvehi-cles/machines
MMK100,000/ton -
Tobecomputedas:0.5-1.49=1Ton1.5-2.49=2Tonandso on.
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Sr. Offense Description
Vehicles/machinesim-ported normally, motor-vehiclesimportedun-derprojectsPenalty
General Good
Penalty
Remarks
Discrepancyinnumber of seats
1/4AV -
To be determined and assessed based on the StandardSeater/EngineDisplacementofthevehi-cleactuallyimported.
DiscrepancyofMeasure-ment of General Goods
- Exempt
To be determined and as-sessed based on the Mea-surementoftheGeneralGoodsactuallyimported.
Discrepancyin thickness -MMK50,000/ton
10. DiscrepancyinLHD,RHD
ImportofRHDinsteadofpermittedLHD
Confiscation -
ImportofLHDinsteadofpermittedRHD
Exempt -
11. DiscrepancyinRecon-ditionedcriteriaofmo-tor-vehicles/machines,equipmentandspares.
DiscrepancyinRecondi-tionedcriteriaofmotor-vehicles/machines
MMK200,0001/50AVincaseofequipment
Sixreconditionedcrite-ria as per the Department ofTrade’sExport/ImportNewsletter6/96dated17-5-1996
12. ImportofUsed/recon-ditioned instead of Brand New
- Confiscation ½ AV .
13. Import of Brand New insteadofUsed/recon-ditioned
- ½ AV ExemptImportofUsed(vehicles)is not permitted
14. Arrivalofgoodsbe-forereceivingofValidForPriorArrival(VPA)permit;receivingofli-cense/permitamend-mentsonlyafterarriv-al of goods.
1-7days
Confiscation
Exempt
8-30days 1/90AV
31-45days 1/48AV
46-60days 1/24AV
61daysandabove Confiscation
15. ExpiredIL/IP 1-7days
Confiscation
ExemptWithregardstoIL/IPre-newal, if renewal is ap-proveddespitelateness,thennoactionneedtobetakenunderthissection.
8-30days 1/180AV
31-45days 1/90AV
46-60days 1/48AV
61daysandabove Confiscation
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Sr. Offense Description
Vehicles/machinesim-ported normally, motor-vehiclesimportedun-derprojectsPenalty
General Good
Penalty
Remarks
16. AfterLandedCorrec-tion(ALC)ofManifest
1-15days 1/24AV 1/360AV DifferencebetweenBerth-ing Date and Date of Cor-rection(TelexDatefromShippermustbecomputed.)
16-30days 1/12AV 1/180AV
31-60days 1/6AV 1/90AV
61daysandabove 1/2AV 1/24AV
CorrectionbyShip-ping Line
MMK100,000 MMK4,000
OnlyvalidcorrectionsbyShipping Line are split-tingorcombiningofmani-fest line-items, or insertion of additional line-items tothemanifest.(PaLa-Ka167(16))
17.
Mis-declarationofpar-ticularsonIL/IP/IDorattacheddocuments
Discrepanciesthatmay detrimentally af-fectrevenue
1/4AV
1/360AVto1AV
DiscrepancybetweenIL/IP/IDandotherrelateddocumentssuchasBL.Invoice,PackingList.Deliberation will be based on whether or not the errors in the Com-mercialDocumentshavedetrimentalreve-nueconsequences.Misspellings in name, ad-dress shall be exempt.
Discrepanciesthatdonot detrimentally af-fectrevenue
1/90AV
18.
IP,IP,IDExcess
InrespectofGeneralGoods,whereadvanceddeclarationofexcesscargoorSection(29)isinvoked:
Computationofexcesspercentageshallbebasedonquantity/weight/valueof goods.
Upto10% - 1/24AV
11%-30% - 1/12AV
31%-50% - 1/4AV
51%andabove - 1/2AV
19.
IP,IP,IDExcess
ExcesscargofoundonCustomsExam,withnoadvancedeclarationorapplicationunderSection(29)post-inspectionsubmission:
Computationofexcesspercentageshallbebasedonquantity/weight/valueof goods.
Upto10% - 1/12AV
11%-30% - 1/6AV
31%-50% - 1/2AV
51%andabove - 1AV
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Sr. Offense Description
Vehicles/machinesim-ported normally, motor-vehiclesimportedun-derprojectsPenalty
General Good
Penalty
Remarks
20.
Notincludedinap-provedIL/IP/ID
Import of goods other thanapprovedinIL/IP/ID;Completely different from approvedclassification
ConfiscationConfiscation or 1AV
Importsunderli-censewillbecomparedagainstlicense.Importsnotrequiringali-cencewillbecompareagainstimportdecla-rationfrom/bytheCus-toms Department.
21. No safety-belt invehicle.
- 1/180AV -
ApprovedatProceedings4/2016held29-11-2016oftheMotor-vehicleImportsSupervisoryCommittee
47
AlexanderBohusch
Rechtsanwalt/Attorney-at-law(Germany)
LutherLawFirmLimited
Myanmar
Phone+951500021
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Avocvat/Attorney-at-law(France)
LutherLawFirmLimited
Myanmar
Phone+951500021
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