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Postponement of Tax Payments and Assessments in Myanmar

Postponement of Tax Payments and Assessments in Myanmar

March 5, 2021

The Union Parliament (“Pyidaungsu Hluttaw”), represented by the Committee Representing Pyidaungsu Hluttaw (“CRPH”), enacted the Law Amending Union Tax Law 2020 on 3 March 2021, which postpones tax collections and assessments until 30 September 2021. The CRPH was formed by the elected parliamentarians on 5 February 2021.

All types of taxes and levies, including Income Tax, Commercial Tax (“CT”), Specific Goods Tax (“SGT”), and Customs Duty, listed under the Schedule 1 of the Union Tax Law 2020, will be postponed with regards to payments and assessments until 30 September 2021. In other words, monthly payments of CT, SGT, Personal Income Tax, and Withholding Tax as well as quarterly payments of Corporate Income Tax can only be made after 30 September 2021.   

The Ministry of the President’s Office, formed by the CRPH, also issued Notification 1/2021 on 4 March 2021, which reiterates the postponement of tax collections and states that all the responsible staff from the relevant ministries shall stop collecting applicable taxes until 30 September 2021. Action in accordance with the existing laws will be taken against those who do not comply with the provisions under Notification 1/2021.

Due to the current political situation in Myanmar, the majority of tax offices, including the Large Taxpayers’ Office, Medium Taxpayers’ Office, and township Internal Revenue Department (“IRD”), as well as private and state-owned banks, such as Myanma Economic Bank where the IRD’s bank accounts are situated, are closed; this makes it impossible for taxpayers to process any tax payments.

Taxpayers have had concerns about being exposed to late-payment penalties based on the provisions under the existing tax laws. However, based on the Law Amending Union Tax Law 2020 and Notification 1/2021 issued by the Ministry of the President’s Office, taxpayers who have been experiencing difficulties processing tax payments due to recent events in Myanmar can now process all relevant tax payments after 30 September 2021.