There are no deductions available for costs related to employment income.
Donations made to approved charitable organisations or approved government sponsored events are tax deductible, but total donations should not exceed 25% of income.
Life insurance premiums
Premiums for life insurance (both of taxpayer and spouse) are deductible.
Social security contribution
Social security contributions made by the employee are deductible.
Based on a notification issued by the Ministry of Finance, a relief of 20% of the individual’s income is allowed (for Myanmar citizens and resident foreigners in Myanmar). However, the total of such basic relief should not be more than MMK 10 million of income within an income year.
Allowance in respect of spouse and children of an individual are as follows:
- MMK 1 million for a single spouse only (provided spouse does not have any assessable income).
- MMK 500,000 for each child who is under 18 years old and not married.
- MMK 1 million for each parent staying with the individual.
In respect of business income, deductions are allowed for expenditure incurred for the purpose of earning income.
Non-deductible items include capital expenditure, personal expenditure, expenditure that is not commensurate with the volume of business, payments made to any member of an association of persons other than a company or a cooperative society, and inappropriate expenditure.
Ordinary losses from any source may be set off against income accruing from any other source in that year.
Capital losses and a share of losses from an association of persons cannot be set off against income from other sources or carried forward.