INVESTING IN MYANMAR | TAX ISSUES | THE COMMERCIAL TAX

In this post we will discuss Myanmar Commercial tax which is a turnover tax that is specific to Myanmar and that is

levied on good and services. Do not hesitate to contact me if you have any questions in relation to this matter

at corporate@offshorepremium.com

Is there a VAT System in Myanmar?

No there is not yet a VAT system in Myanmar. But in the near future it is probable that the government will set up a

local VAT system. In lieu et place of VAT Myanmar has a tax called the Commercial Tax or also the Business Tax

What is Myanmar Commercial Tax?

Briefly explained, the commercial Tax is a turnover tax that is levied on goods and services payable on goods,

imported or exported or produced in Myanmar, trading sales, and services.

The commercial tax rates can be anything between 0 to 200% (on luxury items only) but the average rates on non-

luxury items will be between 5 to 30%.

How is the Commercial Tax Collected?

The system of collection of the Commercial Tax is as follows:

For the import or export of goods, commercial tax is collected by the Myanmar Customs Department at the point

of importation or exportation in the same manner that customs duties are collected

For goods and services supplied in Myanmar, commercial tax is imposed at the time of supply.

Commercial Tax Rates:

The actual Commercial Tax rates are listed into several product schedules updated from time to time by the Ministry

of finance. In this post we will not review the Commercial Tax rates products per products but give you the broad

principle applicable to products of each schedule

Are they Exemptions Available?

Yes, it is possible to benefit from an exemption to the commercial tax.

This privilege is in general granted as an incentive for a newly established business and for exports. An exemption

will only be granted on a case-by-case basis.