The Myanmar Stamp Act (“MSA”) as well as its Schedule 1 that specifies the various rates of stamp duties applicable to various instruments has been gradually updated over the last few years. However, it has been noted that many investors have not been aware of the need to get their contracts or leases stamped.
Further to the above, the Internal Revenue Department issued a notification on 16 January 2016 (the “Notification”) to remind tax payers of the need to pay stamp duty on the relevant contracts.
It further states that if taxpayers settle the appropriate amount of stamp duties on both current as well as expired contracts before the end of the current fiscal year 31 March 2016, no penalties for non-compliance will be applied. It should be noted that the non-compliance penalties may be as high as 10 times the unpaid stamp duties.
As such, tax payers may wish to examine if their agreements, leases and contracts have been stamped appropriately in order to determine the necessary corrective actions needed, if any.
KPMG will be happy to assist in the review of the relevant agreements, leases and contracts if stamp duties would be applicable. KPMG will also be able assist in the necessary compliance in relation to the getting the relevant documents stamped accordingly.
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.