Social security contributions
The Social Security Act 2012 requires an employer with more than five workers to provide Social Security Scheme benefits to one’s workers, such as health and social care insurance as well as insurance against employment-related injuries.
The rates of contribution by employees and employers are 2% and 3% of the total salaries and wages, respectively. The contribution must be in Myanmar kyats regardless of the currency in which the employee is paid.
With effect from 1 April 2014, the maximum monthly contribution is limited to MMK 9,000 by the employer and MMK 6,000 by the employee.
Contributions are deductible by the employee for tax purposes. The employer is obligated to withhold the employees’ contributions from their salaries.
Capital gains taxes
Income tax is levied on gains from the sale, exchange, or transfer of capital assets (i.e. any land, building, vehicle, and any capital assets of an enterprise, which include shares, bonds, and similar instruments) and intangibles (to the extent they fall within the definition of capital assets).
Capital gains are calculated based on the difference between sale proceeds and the cost of assets and any additions, less tax depreciation allowed.
Residents and non-residents are taxed at 10% on their capital gains. Different rates apply for capital gains from the sale, exchange, or transfer of capital assets relating to companies engaged in upstream oil and gas activities relating to exploration, drilling, and extraction within Myanmar.
Net wealth/worth taxes
There are no net wealth/worth taxes in Myanmar.
Inheritance, estate, and gift taxes
There are no inheritance, estate, or gift taxes in Myanmar.
Luxury and excise taxes
Excise duty is levied on alcoholic drinks. The duty is collected by the General Administration Department under the Ministry of Home Affairs.
Stamp duty is levied on various types of instruments, and some rates are given below:
- 2% of the amount or value of the consideration for conveyances of properties, for the sale or transfer of immovable property, plus an additional 2% (conveyance of properties located in Yangon is subject to additional 2% stamp duty). Prior to 1 October 2016, the stamp duty rate on conveyance was 3%.
- 0.1% of share value for the transfer of shares. Prior to 1 October 2016, the stamp duty rate on share transfer was 0.3%.
- 0.5% of the amount or value secured for bonds. Prior to 1 October 2016, the stamp duty rate on bond instrument was 2%.
- 0.5% of the annual value of rent and 2% of the premium for the immovable properties lease agreements between one and three years, and 2% of the average annual value of rent and premium where the term of the lease agreement is more than three years. Prior to 1 October 2016, the stamp duty rates for the lease agreement with lease term not exceeding three years was 1.5% and the lease agreement with lease term more than three years was 3%.