Worldwide Tax Summaries--MYANMAR(1999-2000)(part1)

Worldwide Tax Summaries--MYANMAR(1999-2000)(part1)

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Significant developments in the past year include the following. A 2% tax has been imposed on revenue earned in foreign currency. Double taxation agreements have been signed with Malaysia and Singapore.

Corporations incorporated in Myanmar are treated as resident and taxed at the rate of 30 on income accruing or arising in Myanmar and outside of Myanmar, i.e., on their worldwide income. Corporations incorporated overseas and locally registered as branches are treated as nonresident and taxed at the minimum nonresident rate of 35% or at graduated resident rates (5% to 40%)whichever yields the greater tax-only on
income accruing and arising in Myanmar.

Regardless of resident status, income tax at the rate of 2% on revenue earned in foreign currency is collected with effect from January 1999.
For Myanmar tax purposes, corporations are classified as follows.
1. Resident-The corporation is established and incorporated in Myanmar; control and management are in Myanmar

2. Nonresident-the corporation is established and incorporated outside Myanmar and carries on business in Myanmar as a foreign branch; control and management are outside Myanmar

Capital gains tax/See under “Income determination” below.

Local income taxes/There are no local income taxes.

Taxable income of nonresident foreign branches is determined by one of the following methods at the option of the Internal Revenue department.
  1. On profit as per branch accounts (if accounts are complete and acceptable).
  2. On a proportion of worldwide profits adjusted in accordance with the MyanmarTax Law. Taxable income is determined as follows:

Adjusted worldwide income x (Myanmar receipts ( Worldwide receipts)
3. On deemed profit, i.e., on a reasonable percentage of gross
receipts, which can vary from 5% to 10%.

4. On any basis deemed reasonable.
For tax rates see “Taxes on corporate income” above.

Capital gains/Capital gains and capital losses are recognized when business capital assets are sold, exchanged, transferred, or otherwise disposed of. Capital gains, in respect of the sale, exchange, transfer, or disposal of fixed assets, are calculate at costplus additions less the depreCIAted value of the asset. If the asset was acquired prior to April 1, 1976, cost can be replaced by the fair market value at April 1, 1976. The rate of capital gains tax is 10 %for resident corporations and 40% for nonresident branches.
Capital gains are taxed only if the sale value of an asset exceeds K50,000 in any income year. Capital losses for the year cannot be carried forward.

Foreign income/Foreign-source income derived by a resident corporation is included in taxable income and liable to Myanmar income tax.
Credits are not allowed for any foreign tax paid on overseas income.
There are double taxation treaties with Malaysia, Singapore and the United Kingdom.

Companies incorporated pursuant to the Union of Myanmar Foreign
Investment Law enjoy concessionary tax rates.

Income for the year is estimated and tax is paid quarterly, in advance, at the end of June,

September, December, and March. Upon final assessment, if the liability exceeds tax installments, a penalty not exceeding 10% of the shortfall will be imposed.

Tax assessments are based on the previous year's income. The tax year begins on April 1

and ends March 31 of the following year. An assessee cannot choose its own accounting year. All accounts must be made up to March 31, and a tax return must be filed within three months, i.e., before June 30.
Late returns are subject to a penalty not exceeding 10% of the tax due.

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


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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