Less than a month to go!
Our Tax Team wishes to remind you of the fast-approaching deadline for the submission of your annual corporate tax returns for the financial year ended 31 March 2023 (“FY 2022-2023”). All Myanmar taxpayers (corporate entities, non-profit organizations, and individuals) should file their annual tax returns on or before 30 June 2023.
This annual return submission applies to Corporate Income Tax (“CIT”), Personal Income Tax (“PIT”) Salary Statement, Consolidated Capital Gains Tax (“CGT”), and Commercial Tax (“CT”) for the FY 2022-2023.
Corporate Income Tax
If your company is registered with the Large Taxpayers Office (“LTO”) or the Medium Taxpayers Office (“MTO”) that already adopts the e-filing system of the Internal Revenue Department (“IRD”), you should file an annual CIT return (using the authorized form) and related attachments using your registered e-filing account.
Meanwhile, if you are registered with other tax offices that have not yet adopted the e-filing system of the IRD (e.g., local township tax office), you should file your CIT return and financial reports — or audited financial statements — to your respective tax office.
Please note that taxpayers who are required to file the tax returns via the e-filing system should also provide a Taxpayer’s Signature document (with the original signatory of the authorized person) to their registered tax office before 30 June 2023. The document can be downloaded from this link here.
Personal Income Tax of Employees
Individuals who earn income from salary are not required to submit an annual tax return. Instead, employers of such individuals should submit an Annual Salary Statement (known as PaTa Kha (Wa Nga) – 03 -07 (A)) through their e-filing account.
In addition, employers are also required to provide to their employees a copy of Form 15(a) (Certificate of PIT payment) to confirm the tax payments made on their behalf during the year. This Form 15(a) replaces the PIT book (or the ‘blue book’) and tax receipts that were previously issued to employees.
Consolidated Capital Gains Tax
If you have sold, transferred, or exchanged any capital assets in Myanmar (e.g., land, building, vehicle, shares, etc.) during FY 2022-2023, you should also file a consolidated annual CGT return and related attachments using the e-filing account.
Commercial Tax
If your company is engaged in the manufacturing, trading, importing goods, or providing services, except those listed as CT-exempt under the CT Law or the Union Tax Law, then you are likely subject to CT in Myanmar. However, your company may also be exempted from CT if its revenue for FY 2022-2023 does not exceed the MMK 50 million (approx. USD 23,800) threshold.
If your company is registered with the tax office that already adopts the e-filing, you should file a CT return (based on the authorized form) and related attachments using your registered e-filing account with the IRD. The filing of the return is required even if your company has no CT transactions for the year. In addition, you should also provide details of the CT certificates such as Form 31 (Local purchase CT Form), Form 32 (Importation CT Form), and Form 33 (Tax offset confirmation form) claimed as tax credit, as well as the reconciliation of revenue if there is a difference in the revenue base for the CIT and CT reports.
Meanwhile, if you are registered with other tax offices that have not yet adopted the e-filing system (e.g., township tax offices or those under official assessment system), you must submit your CT return and related attachments to your respective tax office at the time of filing.
Avoid the penalties!
If you fail to file the required annual tax returns on time, the IRD, during tax assessment proceedings, may charge penalties at the higher of:
- 5% of the tax due plus an additional 1% of the tax due for each month (or the proportionate amount if less than a month) from the due date of the return until the date of the IRD’s assessment; or
- MMK 100,000 (approx. USD 48).
Also, if the IRD deems that the taxpayer deliberately provides an incorrect statement or intentionally omits a key matter that results in a reduction of the tax liability, the IRD may also apply the following penalties:
- 25% of the underpayment if the amount of underpayment is less than MMK 100 million (approx. USD 47,600) or up to 50% of the tax payable; or
- 75% of the underpayment if the level of underpayment is more than MMK 100 million or 50% of the tax payable.
Should you need any assistance with your annual tax return filings, DFDL stands ready and willing to assist you.
Diberjohn Balinas, Tax Director, Myanmar, [email protected]
