Tax on property income in Myanmar
October 02, 2017
Effective Tax Rate on Rental Income
|Click here to see a worked example|
Global Property Guide research
Nonresident individuals are taxed on their income from sources in Myanmar. Married couples are assessed and taxed separately.
Foreigners are not allowed to own immovable property in Myanmar.
The tax year is from 01 July of the current year to 31 March of the succeeding year. The tax year 2016-2017 is from 01 April 2016 up to 31 March 2017. The tax year 2017-2018 is from 01 April 2017 up to 31 March 2018.
Income tax earned by nonresident foreigners is generally taxed at progressive rates, from 0% to 25%.
INCOME TAX 2015
|TAXABLE INCOME, MMK US$|
|Up to 2 million (US$1,709)|
|2 million- 5 million (US$4,274)|
|5 million – 10 million (US$8,547)|
|10 million – 20 million (US$17,094)|
|20 million – 30 million (US$25,641)|
|Over 30 million (US$25,641)|
RENTAL INCOME TAX
Rental income earned by nonresident foreigners is taxed at a flat rate of 10%.Taxable rental income is computed by deducting income-generating expenses from the gross income. However, when it comes to income from immovable property, no depreciation allowance can be deducted.
Stamp Duty on Rental Income
Stamp duty is levied on rental income, and the applicable rate depends on the rental period.
STAMP DUTY ON RENTAL INCOME
|Up 1 year|
|1 year – 3 years|
|Over 3 years|
CAPITAL GAINS TAX
Capital gains realized by nonresident foreigners from the sale of immovable property are taxed at a flat rate of 10%. Taxable capital gains are computed by deducting acquisition costs and transaction costs from the sales proceeds.
Stamp Duty on Sale of Property
Stamp duty is levied on sale of real property, and the applicable rate depends on the location of the property.
STAMP DUTY ON SALE OF PROPERTY
Property taxes are levied on the property’s annual value or the property’s anticipated gross rent if it is leased unfurnished. The property’s annual value is determined by the local authorities where the property is located.
|General Tax||20% of annual value|
|Lighting Tax||5% of annual value|
|Water Tax||12% of annual value|
|Conservancy Tax||15% of annual value|
Income earned by nonresident companies is generally subject to corporate income tax at a flat rate of 25%. Income-generating expenses are deductible when calculating taxable income.
CAPITAL GAINS TAX
Capital gains earned by nonresident companies are generally subject to corporate income tax at a flat rate of 25%. Taxable capital gains are calculated by deducting the following from the sales proceeds: acquisition costs and additional expenses, and any allowable tax deduction.