Myanmar taxes resident companies (except MIC-registered companies) on worldwide income; MIC-registered companies and non-resident companies are taxed only on Myanmar-source income. Myanmar has no CFC-style attribution provision. Myanmar operates a self-assessment system, though enforcement and administrative practice have been affected by the country's political situation since 2021.
The Myanmar tax year runs 1 October to 30 September.
Myanmar's headline corporate income tax (CIT) rate is 22%.
The headline personal income tax (PIT) rate is 25%.
The standard VAT/GST (or equivalent consumption tax) rate is 5% (commercial tax; no VAT).
Corporate residence is determined by place of incorporation: companies incorporated in Myanmar are resident. Resident companies (except MIC-registered companies) are taxed on worldwide income; non-resident companies and MIC-registered companies are taxed only on Myanmar-source income. There is currently no definition of "permanent establishment" under the Myanmar Income Tax Act itself; in practice, Myanmar tax authorities collect withholding tax from non-resident foreigners on Myanmar-source income regardless of whether the foreigner has a PE or other taxable presence. Separately, under the Union Taxation Law 2025 (UTL 2025), Myanmar has extended personal income tax to income received by non-resident Myanmar citizens in foreign countries.
Myanmar's Income Tax Act does not currently define a formal permanent establishment concept; in practice, Myanmar tax authorities collect withholding tax from non-resident foreigners on Myanmar-source income regardless of whether a formal PE or other taxable presence exists.
No CFC-style attribution provision was found in Myanmar's tax legislation.
Myanmar has no statutory safe-harbor debt-to-equity ratio for thin capitalization purposes under its Income Tax Law, and a company's permitted capitalization may instead be addressed within the specific investment licenses granted to it rather than through a general statutory rule. In practice, the Central Bank of Myanmar sets a maximum debt-to-equity ratio of 3:1 or 4:1 as one of the conditions a Myanmar entity must satisfy to obtain approval for a foreign loan, and interest on an unapproved foreign-sourced loan may face restricted deductibility as a practical consequence of that approval requirement, even though this operates as a foreign-exchange and investment-licensing control rather than a codified tax thin-capitalization rule.
Myanmar does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Myanmar does not have a comprehensive ATAD2-style anti-hybrid regime.
No foreign bank account or foreign financial asset reporting regime exists requiring residents to separately disclose foreign accounts; foreign income is reported through the standard annual tax return.
Myanmar does not provide a broad participation exemption for foreign dividends; relief from double taxation is available primarily through Myanmar's foreign tax credit system.
Myanmar has a foreign tax credit mechanism for foreign tax paid on foreign-source income also taxed in Myanmar, capped at the Myanmar tax otherwise due on that income.
Relief is available only pursuant to an applicable tax treaty, and critically, the application of Myanmar's tax treaties is at the sole discretion of the Ministry of Planning and Finance - treaty benefits are not automatically self-executing. A non-resident seeking treaty relief must obtain and submit a Certificate of Residence from their home country's tax authority and separately apply to Myanmar's Internal Revenue Department (IRD) for approval. Myanmar has double tax agreements in force with eight countries: the United Kingdom, Singapore, Malaysia, Thailand, Vietnam, India, South Korea, and Laos; treaties with Indonesia and Bangladesh have been signed but remain unratified.