A. Update
Currently, the employer files annual tax salary statement, WaNga 03-07 report for all employees, reflecting the employment income paid and taxes withheld to Internal Revenue Department (IRD) of Myanmar. However, the IRD has segregated the reporting in 2 forms based on the income level of the employee and accordingly, a new form has been introduced i.e., (WaNga 16a).
Effective Financial Year 2022-23, for the employees who earn less than MMK 4.8 million in a fiscal year, the company must submit WaNga 16a. For the employees who earn more than MMK 4.8 million in a fiscal year, the company must submit WaNga 03-07.
B. Statutory Compliance Release Date: May 18, 2023
C. Effective Date: May 18, 2023
A. Update
The PAYE Excel report (i.e., Pathakha WaNga 03-06a) gives the information about PAYE for Employment Income. This report is required to be submitted by employer only through IRD online portal through one of the below options:
(1) To complete the excel report and upload it into the IRD Portal
(2) To complete the e-format of the report directly on IRD Portal
Going forward, IRD would not accept any physical submission of PAYE excel report and would request the taxpayer to submit the Form only via IRD portal.
B. Statutory Compliance Release Date: October 13, 2022
C. Effective Date: October 13, 2022
A. Update
Electronic method of tax payment must be followed by the taxpayer’s receiving assessment under the Medium Taxpayer’s Office 2 (MTO 2) and PAYE certificate (aka WaNga 15a) is the proof of tax submission.
However, some inconveniences have been faced by the foreign employees upon presenting the Patakha (WaNga) – 15(a) due to lack of the official seal and the officer in charge’s signature of the Internal Revenue Department.
In view of the above, the foreign employees can now apply for confirmation on correctness of the Patakha (WaNga) – 15(a) issued by the company’s HR at MTO 2.
- the taxpayers themselves at the Tax office shall apply through the employers, who are withholding the income tax on salary, at the Compliance Section of the MTO (2).
- the relevant employer shall apply the confirmation together with the PAYE Certificate (Patakha (WaNga)-15 (a) (original) and applicable copies of (Patakha (WaNga)-16), Patakha (e-payment)-1 or Patakha (e-payment) -2 at the Compliance Section of the MTO No. (2)
If taxpayers having salary income and are resident citizens, want to present their source of income by using PAYE Certificate Patakha (WaNga) – 15 (a), the process shall be carried out at the relevant township tax office. However, in case of other matters other than income escaped from the assessment and required confirmation of the correctness of the certificate, the process shall be the same as per above paragraph 1(a) and 1(b).
This announcement is only applicable to the company who are currently assessed at MTO 2. Only the foreign employees employed under that company can apply it. The report remains the same and there are no changes.
This notification is effective from the Financial Year the company has started using online tax payment system.
Taxpayer’s Service Section: 09880876654
B. Statutory Compliance Release Date: July 13, 2022
C. Effective Date: July 13, 2022
A. Update
Internal Revenue Department (IRD) requires the taxpayers to use the e-payment system starting from 1 October 2020 (i.e., FY 2020/2021). The e-payment channel of IRD include m-Banking, e-banking, i-banking and mobile payment systems. The tax offices (i.e., Large Taxpayers Offices (LTO), Medium Taxpayer Offices (MTO) and Township revenue offices) are planning to stop accepting the cheque payments in near future. Hence, it is becoming mandatory for the taxpayers to initiate e-payment system to pay all the relevant taxes through online payment system.
Facts concerning e-payment system for personal income tax on salary income
- With e-payment system, IRD will not provide individual tax challan with the employee’s name. Upon successful payment, taxpayers will receive e-receipt with the lump sum tax amount under the company’s name from IRD.
At the time of payment, the company is required to complete the PAYE excel file to upload on the online system and to send the e-receipt to the company’s relevant corporate income tax office. This needs to be prepared on monthly basis and enclosed with the online payment. Monthly payment is required 15 days after the end of the month and hence, the form is required at the same time. - The company as an employer is required to complete and provide Certificate of Income Tax deducted under the heading of salaries (WaNga 15 (a)) to the employee annually. For employee leaving the company, the certificate shall be prepared up to the month of the final salary payment. The form WaNga 15 (a) will replace the challan and the tax record book.
- With the e-payment system, IRD has stopped the practice of the township revenue officer updating the employees' tax record books. The WaNga 15 (a) issued to the employee will be the only proof for tax payments in the relevant financial year. The employee can use this certificate for tax clearance purpose in the same way with the challan and tax record book.
B. Statutory Compliance Release Date: December 05, 2021
C. Effective Date: December 01, 2021
A. Update
Ministry of Planning, Finance and Industry via Notification No. 510/2021 has published Union Tax Law 2021. Following are the highlights of the enactment:
1. Changes in income tax slab
| Sr. No. | Income Bracket to be Levied |
Income Tax Rates to be Levied | |
|---|---|---|---|
| From | To | ||
| Kyats | Kyats | ||
| (i) | 1 | 20,00,000 | 0% |
| (ii) | 20,00,001 | 1,00,00,000 | 5% |
| (iii) | 1,00,00,001 | 3,00,00,000 | 10% |
| (iv) | 3,00,00,001 | 5,00,00,000 | 15% |
| (v) | 5,00,00,001 | 7,00,00,000 | 20% |
| (vi) | 70,000,001 and above | 25% | |
2. Relief under Section 6-A of Income Tax Law
The contributions to religious or charitable organisations sponsored by the State or recognized by the Ministry of Planning and Finance shall be deducted while calculating income tax. However, the deduction shall not be more than 25% of total income of the taxpayer.
3. Fiscal Year changes
Internal Revenue Department notified the taxpayers that the fiscal year will change to April 01 - March 31 starting from FY 2022-2023. Hence, the businesses including financial institutions, private enterprises, and state-owned enterprises are required to prepare and submit the tax returns for the 6 months transitional period for October 01, 2021 to March 31, 2022.
There will be no changes to the payroll reporting format to tax authority. As regard to timeline for the monthly payroll reporting, the due date to withhold and pay to tax authority is still within 15 days from the pay day and the annual payroll reporting is to be filed by June 30, 2022.
4. Tax during the transitional period
In relation to the salary income, no income tax shall be levied provided that the income during this period multiplied by 2 does not exceed 4.8 million kyat. If the income exceeds 4.8 million Kyat, the income tax shall be calculated on the net income after setting off the relief according to section 6 of the income tax law. Thereafter, half of the calculated income tax shall be income tax payable for the period.
