State Administration Council (SAC), enacted Law No. 55/2023, amending the Union Tax Law 2023, on September 12, under Section 419 of Myanmar’s Constitution.
As per the announcement, the law will be in effect from October 1, 2023, to March 31, 2024.
It introduces a 10% tax on total foreign exchange incomes earned abroad, excluding salaries of citizens residing in foreign countries.
Furthermore, for foreign exchange salaries of citizens residing abroad, the lower tax amount of the two methods outlined in the income tax rules shall be applied.
(1)As per Rule 8, imposed of the income tax with deduction of exemption under Section 6 and 6-a of the law,
(2)Without subtracting the amount of exemption under Section 6 and 6-a of the law, a two percent tax shall be levied over the incomes.
Moreover, the taxpayer shall have the right to subtract the amount paid as tax abroad from the calculated amount of tax under this law.
Download SAC Enacts Amendment of Union Tax Law [MY & EN]