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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

Myanmar News: Myanmar Tax Update 2017

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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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21 Publictransportservices(otherthandomesticairtransportofpassengers)

22 Licensefeespaidtostateorganizationsforsomeconcession

23 PrintingandpublishingservicesfromthesecurityprintingworksundertheMinistryofDefence

24 Servicesprocuredbyforeigndiplomaticmissionsandconsulatesrelevantunder“reciprocalbasis”,anddiplomatsandnon-diplomaticpersonnelthereof

25 ServicesprocuredwithmoneydonatedorgrantedasaidtotheUnionbydomestic/foreignorganizations


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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(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%



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-

13

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).


14

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).

15

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).


16

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


18

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.

19

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;


1 (a)Cigarettes,allkinds GradeofsalepriceuptoMMK400per20-stickpacket MMK 4/stick


20

(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

21


(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



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%



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.


22

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.

23

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)


24

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


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:

25


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


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


26

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.

27

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.


28

(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%

29

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:


30

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.

31

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


32

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

33

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:


34

“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;


36

(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;”

37

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.


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.”


38


“a.AmanufacturerwhodomesticallymanufacturestaxableSpecial-GoodsorimporteroftaxableSpecial-Goodsorgemsdeal-ershallpaytheduetaxesasperSection(8)oftheSpecial-GoodsTaxLaw,andalsosendthequarterlydeclaration-formformanufacture,manufactureandsale,exportofSpecial-GoodsanddealingingemstotheTownshipRevenueOfficer,withintendaysafterthecompletionoftherespectivequarter.”

b.TheTownshipRevenueOfficernotifyanypersontopayduetaxesandtosendquarterlydeclaration-formiftheTownshipRevenueOfficerhasgroundsforbelievingthatsuchpersonismanufacturing,exportingtaxableSpecial-Goodsordealingin gems.

c.AnimporteroftaxableSpecial-GoodsshallsubmitalistofimportedSpecial-GoodstotheCustomsDepartmentbeforeclearancefromtheCustomsDepartment.”


“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.”


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.”

39

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.


40

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.

41

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)


42

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.

43



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.


44



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

45



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


46



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

[email protected]

FannyTatin

Avocvat/Attorney-at-law(France)


Myanmar

Phone+951500021

[email protected]

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Editor:AlexanderBohusch,Rechtsanwalt/Attorney-at-law(Germany),

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