Myanmar Income Tax (PIT) Calculation
Individuals, whether presently in receipt of or anticipated to receive salary, wages, annuities, bonuses, awards, or any other form of compensation, in lieu of salary wages, are subject to taxation. Myanmar income tax computation encompasses salary income, commissions, annuities, and service fees received throughout the fiscal year.
According to the Taxation of the Union Law of Myanmar, 2016,
No income tax shall be imposed on individuals whose salary income does not exceed Kyats 48 lakh per year. Nevertheless, if the annual salary income surpasses Kyats 48 lakh or if the income originates from professional business, enterprise, or other sources, the applicable tax rate, determined by the income bracket after deducting reliefs under section 6 of the Income Tax Law from the total income, shall be prescribed accordingly to everyone.
| Sr. No | Income Bracket to be Levied | Income Tax Rates to be Levied | |
| From | To | ||
| Kyat | Kyat | ||
| i. | 1 | 2,000,000 | 0% |
| ii. | 2,000,001 | 5,000,000 | 5% |
| iii. | 5,000,001 | 10,000,000 | 10% |
| tv. | 10,000,001 | 20,000,000 | 15% |
| v. | 20,000,001 | 30,000,000 | 20% |
| vi. | 30,000,001 & above | 25% | |
The following reliefs shall be deducted from the total income of the individual and the Income Tax Law and the tax (PIT) shall be levied on the remaining amount of income. If the remaining amount is less than Kyats 20 lakh, no income tax shall be imposed.
| Sr. no | Relief Type | Amount |
| i. | A parent who stays together | Kyats 10 lakh each/ year |
| ii. | A spouse only | Kyats 10 lakh/ year |
| iii. | A child (max. 4 children) | Kyats 5 lakh each/ year |
| iv. | Life Insurance/ Premium Fees | – |
| v. | SSB Payment | – |
How to calculate the income tax (PIT) of Myanmar?
Firstly, ascertain the total annual income by multiplying the monthly income by the number of months falling within the fiscal year. Then, calculate the income tax based on 20% of the annual income, ensuring that the tax amount does not surpass Kyats 100 lakh.
If the annual income of someone is Kyats 60 lakh
| . | Kyats |
|---|---|
| Annual Income Basic relief (20% x 6,000,000) Relief for Parent (1,000,000 x 2) Relief for spouse Relief for 2 children (500,000 x 2) Life Insurance SSB Total relief amount Taxable income Income Tax | 6,000,000 1,200,000 2,000,000 1,000,000 1,000,000 50,000 50,000 5,300,000 700,000 No income tax imposed |
If the annual income of someone is Kyats 90 lakh,
| . | Kyats |
|---|---|
| Annual Income Basic relief (20% x 9,000,000) Relief for Parent (1,000,000 x 2) Relief for spouse Relief for 2 children (500,000 x 2) Life Insurance SSB Total relief amount Taxable income Tax Calculation (5% for 2,000,001 – 5,000,000) (3,100,000 – basic relief 2,000,000) * 5% Annual Income Tax Monthly Income Tax | 9,000,000 1,800,000 2,000,000 1,000,000 1,000,000 50,000 50,000 5,900,000 3,100,000 55,000 55,000 4,583 |
For your convenience, these Myanmar income tax (PIT) calculations can be proceeded by linking some formula in the excel file for each individual.
However, when dealing with calculations for numerous employees, using the excel format can be time-consuming and increase the likelihood of mistakes and errors. Moreover, for new beginners, learning the calculation process may be a lengthy process. In such cases, payroll or HRMS software, like Better HR, proves to be extremely useful. The entire process of tax calculation for individual employees can be completed within seconds.
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