A resident company is a company as defined and formed under the Myanmar CA or any other existing law of Myanmar.
A non-resident company is one that is not formed under the Myanmar CA or any other existing law of Myanmar. Generally, foreign branches registered in Myanmar are deemed to be non-resident companies.
Permanent establishment (PE)
Currently, there is no definition of a PE under the Myanmar Income Tax Act. Under the Myanmar Income Tax Act, the Myanmar tax authorities are empowered to collect income tax from a non-resident foreigner on its income sourced within Myanmar. In current practice, the Myanmar tax authorities seek to collect taxes from a non-resident foreigner on its income received from Myanmar by way of a withholding tax (WHT) mechanism, regardless of whether the foreigner has a PE or taxable presence in Myanmar or not. The term ‘PE’ may be defined in the tax treaties that Myanmar has with other countries. Subject to the relevant tax treaty, a foreigner who is tax resident of the treaty country may not be subject to Myanmar taxes if it does not have a PE in Myanmar.