Income is categorised as income from a profession, business, property, capital gains, other sources, and undisclosed sources, as well as income that has escaped tax assessment. Income from capital gains is assessed separately.
Tax is levied on total income, after the deduction of allowable expenditure and depreciation.
The Ministry of Planning, Finance, and Industry, with the approval of the government, may, by notification, prescribe, amend, and add assessable income and rates of income tax.
There are no prescribed inventory valuation methods for tax purposes.
Income from capital gains is assessed separately. See Capital gains tax in the Other taxes section for details.
Myanmar has a one-tier corporate tax system, under which shares of profits received by a Myanmar taxpayer from an association of persons (i.e. partnerships, joint ventures, companies, etc.) are exempted from income tax.
Interest income and income from movable property are treated as business income.
There is no specific provision under the current Myanmar Income Tax Law governing the taxability of royalty income. Royalty income is generally treated as business income.
Resident companies (except the MIC-registered companies) are taxed on a worldwide basis, and, as such, income from sources outside Myanmar is taxable in Myanmar.
Non-resident companies and MIC-registered companies are not taxed on their foreign income.
There is no deferral regime available to foreign income in Myanmar.