Worldwide Tax Summaries--MYANMAR(1999-2000)(part2)

Worldwide Tax Summaries--MYANMAR(1999-2000)(part2)

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INDIVIDUAL TAXES
SIGNIFICANT DEVELOPMENTS
The personal tax rate for resident foreigners has been changed to a 15% flat rate.

The commerCIAl tax on foreign currency proceeds has increased from 5% to 8%.

TERRITORIALITY AND RESDENCE
Myanmar taxes is residents on income arising both inside and outside the country. Nonresidents are assessable only on income accruing and arising is Myanmar. Individuals who do not spend more than 90 days in Myanmar in any tax year are generally tax-exempt. However, the 90-day rule does not apply if the individual derives income from employment in Myanmar.

Residential status affects the rate at which individuals are taxed. For details, see "Tax rates" below.

GROSS INCOME
Employee gross income/Salary income is taxable and includes salary, wages, gratuities, bonuses, etc. Salary income also includes perquisites and any benefit. For example, the rental value of free accommodations is usually calculated at 10% of the employee's gross salary (or at 12.5 percent if the accommodation is furnished).

If total salary does not exceed K25,000(for private-sector employees), no tax is payable. If the employer pays the employee's tax, a tax-on-tax basis of assessment is adopted.

Capital gains and investment income/Individuals are subject to capital gains tax on the sale of property or motor vehicles. Personal effects, e. g., jewelry, are not considered as capital assets and not subject to tax.
Residents are taxed on capital gains at the rate of 10%; nonresident foreigners are taxed at the rate of 40%.

Property income is taxable and includes income from properties owned and rented. Deductions are available for reasonable expenses incurred on rental property.

Dividends paid by a corporation are exempt from further tax in the hands of the shareholder.

DEDUCTIONS
Business expenses/Expenses not of a personal or capital nature, considered reasonable and incurred solely for the purpose of business, are usually allowed as deductions.

Nonbusiness expenses/Donations to government-sponsored organizations or organizations recognized under a notification are exempt for tax, up to 25% of the taxpayer's total income. There is an allowance for insurance premiums paid on the life of the taxpayer or the taxpayer's spouse.
Personal allowances/An initial deduction of one-fifth of employee gross income is allowed before the calculation of other allowances. These include a basic allowance of 20%, up to a maximum of K6,000, and a family allowance for spouse and children. The child allowance is applicable if the child is unmarried and under 18 years of age or if the child is over
18 years of age and receiving full-time education.

TAX CREDITS
There is no general foreign tax relief. Myanmar does have double taxation agreements with Malaysia, Singapore and the United Kingdom and is considering agreements with some neighboring countries. Reference should be made to relevant treaties for questions concerning specific situations.

OTHER TAXES
Social security taxes/SoCIAl security taxes are payable by any
organization that employs more than five people. A small percentage of salary is payable by both the employer and employee.

Local taxes on income/There are no local taxes on income.

Tax on income in foreign currency/Income received in foreign currency by Malaysian nationals from whatever source is subject to income tax at 10%, payable in foreign currency. This is a final tax.

TAX ADMINISTRATION
Returns/Married couples are taxed separately.

Payment of tax/Income tax payments on salary withheld monthly by the employer and must be paid within seven days. Tax on other income is payable quarterly in advance, based on estimated income.

March 31 is the standard year-end. No other year-end may be adopted.
TAX RATES
STATUS                                    
                                       TAX RATE (%)
Expatriates engaged on government projects ……………………20
Residents' salary income in Kyats………………………………3-30
Resident foreigners………………………………………………   15
Nonresidents ……………………………………………………     35
Nationals and foreigners working for companies
incorporated under Myamar Foreign Investment Law…………  10
Other income*…………………………………………………      5-40

* Other income includes property income, business income, income from any other source, and undeclared income. All other income is aggregated as one sum for assessment.

INDIVIDUAL TAX CALCULATIONS
Salary income(Notes 1,2)
Gross salary and allowances…………………………………K  40,000
Add-Benefits(perquisites) …………………………………     3,000
                                                                        (43,000)
Less-Initial deduction(one-fifth) ……………           (8,600)
                                                                          34,400
Less:
Basic allowance(maximum) ……………………     6,000
Wife allowance……………………………………    2,500
Children(according to age groups) ………………1,300
Insurance …………………………………………    1,200       11,000
Taxable income…………………………………………K  23,400
Resident-At rate of 3% to 30%…………………… K  1,440
Nonresident-On total K43,000 at nonresident flat rate of 35%
                                          ……K  15,050

Other income (in aggregate)
Property (net after direct expenses) …………………   K  25,000
Business …………………………………………………………   160,000
Professional ……………………………………………………   80,000
Other sources……………………………………………………   8,000
Total …………………………………………………………   K  273,000
Tax payable:
Resident-At rate of 5% to 40%……………………………    K  47,150
Nonresident(note 3):
    At minimum rate of 35%………………………………     K 95,550
    At resident rate of 5% to 40%…………………………  K 47,150
(Greater tax of K95,550 is payable).

Calculation of net property income (Note 5)
Total gross rent………………………………………………  K  36,000
Deduct:
Municipal taxes ……………………………………2,000
Less-Tenants tax……………………………………(700)
                        1,300
Repairs………………………………………………4,500
Insurance ………………………………………… 1,200
Collection charges………………………………  800       7,800
Taxable net income……………………………………………  K   28,200
Capital gains(Note 6)
Proceeds of sale or disposal ……………………………  K   55,000
Less-Direct expenses on sale……………………………      (1,000)
                                                                    54,000
Deduct-Original cost plus additions…………………11,000
Less-DepreCIAtion allowed(if any) ……………(2,000)      9,000
Capital gains……………………………………………………K  45,000
Capital gains tax:
On resident at 10%…………………………………………… K  4,500
On nonresident at 40%…………………………………………K  18,000

Notes:
1. Tax-on-tax-Where the employer pays the employee's tax, a tax-on-tax calculation to the last kyat is made.

2. Salary income received in foreign currency is subject to a one-time, flat income tax of 10% for nationals, 15% for resident foreigners and 35% for nonresident foreigners on gross salary. This is payable in foreign currency.

3. The nonresident is taxed at the nonresident rate of 35% or at the resident rate 5% to 40%, whichever yields the greater tax amount. In this case, the Internal Revenue Department would choose method(1) since it results in the higher tax payment.

4. Any income other than business income received in foreign currency by nationals and resident foreigners is subject to a  one-time, flat 10% and 15% income tax, respectively, on gross income, and tax is payable in foreign currency.

5. Property income of nationals and resident foreigners received in foreign currency is subject to a one-time tax of 10% and 15%, respective, payable in foreign currency.

6. If the capital asset was purchased or acquired before April 1, 1976, the original cost before that date can be substituted for a fair-market valuation at April 1, 1976. Capital gains tax is not payable if the sale proceeds in one year do not exceed K50,000.

7.Exchange rate of the kyat at December 31, 1998 US$1=K6.2517

      

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北京中立诚会计师事务所简介下载
地 址:北京朝阳区北苑路13号领地OFFICE大厦B座7层701室
电 话:(010)- 52086638 51095615
传 真:(010)- 52086636
邮 编:100107
E-mail:supercpa@163.com