Union Tax Law 2014
The Pyidaungsu Hluttaw enacted the Union Tax Law on 28 March 2014. The provisions introduced therein will take effect from 1 April of 2014.It should be noted that just prior to the introduction of the above Union Tax Law, the Pyihtaungsu Hluttaw enacted the changes to the Commercial tax Legislation and the Pyidaungsu Hluttaw enacted the changes to the Income Tax Legislation on 24 March 2014.
Upon deeper examination, it is observed that changes introduced on 24 March related to legislative changes whilst the Union Tax Law introduced the respective tax rates for the fiscal year 2014/2015. This represents a positive change in direction for the Myanmar tax system in providing a way to update the tax legislation on an annual basis.
Broadly speaking, the Union Tax Law 2014 has introduced changes to:-
With the enactment of the Union Tax Law 2014, the applicable tax rates for resident companies and non-resident entities continues to be 25% and 35% respectively.
Notwithstanding the above, the highest applicable tax rate for resident individual’s salary, property, business and other income has increased from Myanmar Tax AlertKPMG in Myanmar20% to 25% accordingly. A table showing the new tax brackets is illustrated in the downloadable PDF file.
KPMG Tax Alerts highlight the latest tax developments, impending change to law or regulations, current practices and potential problem areas that may impact your company. As certain issues discussed herein are time sensitive, it is advisable to make your plans accordingly.
“Myanmar Tax Alert” is issued exclusively for the information of clients and staff of KPMG Advisory (Myanmar) Ltd and should not be used or relied upon as a substitute for detailed advice on the basis for formulating business decisions.