Our Tax Team would like to remind you that the deadline for filing your corporate tax returns for the fiscal year ended on 31 March 2024 (“FY 2023-2024”) is approaching soon. All taxpayers conducting business or employment in Myanmar, including individuals, profit-oriented entities, and non-profit organizations, must file their annual tax returns no later than 1 July 2024.

The annual tax returns for submission this 1 July are as follows:

1) Annual Corporate Income Tax return;
2) Annual Salary Statement for employees;
3) Annual Consolidated Capital Gains Tax return (if applicable); and
4) Annual Commercial Tax return.

Corporate Income Tax (“CIT”)

If your company is registered with the Large Taxpayers Office (“LTO”) or Medium Taxpayers Offices (“MTO”) that adopt the Internal Revenue Department’s (“IRD”) e-filing system, you should use your company’s e-filing account to file an annual CIT return (using the approved form) along with any relevant attachments.

However, if your company is not registered with other tax offices that have not yet adopted the IRD’s e-filing system (e.g., local township tax office), your company should submit its CIT return and financial reports, or audited financial statements, to the appropriate tax office either in person, or through mail or email.

Please note that taxpayers who are required to file their tax returns electronically must also provide a Taxpayer’s Signature document (with the original signature of the authorized person) to their registered tax office before 1 July 2024. The document can be downloaded from this link (https://www.ird.gov.mm/my/taxpayer-registration-form).

Personal Income Tax (“PIT”) of Employees

Individuals who receive income from salary are exempt from submitting an annual tax return. Instead, the responsibility for Personal Income Tax filing rests with their employers. Employers are required to submit an Annual Salary Statement (referred to as PaTa Kha (Wa Nga) – 03-07 (A)) for their employees through their e-filing account.

In addition, employers are also required to provide copies of Form 15(A), which is the Certificate of PIT payment, to their employees in order to verify the tax payments that were made on their behalf during the year.

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 2023-2024, then you should also file a consolidated annual CGT return and related attachments using the e-filing account.

Commercial Tax (“CT”)

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 2023-2024 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 reconciliation of revenue if there is 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.

Save yourself from the penalties!

The IRD, during tax assessment proceedings, may charge the higher of the below penalties if you fail to file the required annual tax returns on time:

• 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).

Additionally, the IRD may impose the following penalties if it determines that the taxpayer deliberately provided a false statement or omitted important information that reduced the tax liability:

• 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.

DFDL is here to help if you require any assistance filing your annual tax returns.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

Contacts:

Diberjohn Balinas, Tax Director, Cambodia, Myanmar

Diber is a Tax Director and a member of DFDL’s Regional Tax practice group.