Employer Tax Contributions

Tax Type	Rate	Base
Personal Income Tax Withholding	Progressive (0% - 25% for residents)	Employee's taxable remuneration
Social Security Contribution	3% (Employer), 2% (Employee)	Total salaries and wages, capped at MMK 300,000 monthly (employer maximum MMK 9,000, employee maximum MMK 6,000)
Commercial Tax (if applicable)	Generally 5%	Proceeds from sales or services

Filing & Compliance

• Withheld income tax and social security contributions must be remitted monthly, typically by the 15th day of the following month.
• Employers are responsible for filing an annual salary statement (Wa Nga 16 or PaTa Kha (Wa Nga) – 03-07) on behalf of employees by June 30.
• Commercial Tax, if applicable, requires monthly payments by the 10th day after month-end and a quarterly return within one month after the quarter-end.

Employee tax deductions in Myanmar are determined by progressive rates, meaning higher earners pay a larger percentage of their income in taxes. Various deductions and allowances can reduce the taxable income.

Personal Income Tax (PIT)

• Tax Year: The tax year runs from April 1st to March 31st.
• Tax Rates: Progressive rates range from 0% to 25% for non-resident foreigners and 3% to 30% for resident citizens and resident foreigners. These rates apply to worldwide income for residents and Myanmar-sourced income for non-residents. Non-resident Myanmar citizens are taxed on salary income received in foreign countries.
• Income Threshold: Annual salary income up to MMK 4.8 million is exempt from PIT.

Deductions and Allowances

• Basic Allowance: 20% of total income, capped at MMK 10 million annually.
• Spouse Allowance: MMK 1,000,000 for a non-working spouse with no assessable income.
• Child Allowance: MMK 500,000 per child meeting specific criteria (unmarried, no assessable income, under 18 or in full-time education if older).
• Dependent Parent Allowance: MMK 1,000,000 per dependent parent living with the taxpayer.
• Life Insurance Premiums: Premiums paid for the taxpayer and spouse are deductible.
• Social Security Contributions: Employee contributions are deductible.
• Charitable Donations: Donations to approved organizations are deductible, up to 25% of income.

Social Security Contributions

• Employee Contribution: 2% of total salary, capped at MMK 6,000 monthly.
• Employer Contribution: 3% of basic salary, capped at MMK 9,000 monthly.

Capital Gains Tax (CGT)

• Rate: 10% on gains from the sale, exchange, or transfer of capital assets.
• Threshold: CGT does not apply if the total sale value of the asset is below MMK 10 million.

Other Taxes

• No inheritance, estate, gift, or net wealth taxes are currently levied in Myanmar.
• Stamp duty applies to various instruments.

Employer Obligations

• Withholding Tax: Employers must deduct PIT from employee salaries and remit it to the tax authorities within 15 days of deduction.
• Annual Salary Statement: Employers must provide an annual salary statement to employees within three months of the tax year's end.
• Social Security Contributions: Employers must register for and contribute to the social security scheme if they have five or more employees. They also withhold employee contributions.

Filing and Payment

• Individuals file separate tax returns; joint filing for married couples is not permitted.
• For income other than salary, individuals must file their tax returns.
• The information provided is based on available resources up to today's date, 05 February 2025, and is subject to change due to potential future updates in tax regulations.