Myanmar–Belarus DTA Comes into Effect

The Ministry of Planning and Finance has issued Notification No. 174/2026 dated 20 October 2026, introducing the Double Taxation Agreement (“DTA”) between the Government of the Republic of the Union of Myanmar and the Government of the Republic of Belarus. The DTA was signed on 28 November 2025 and is intended to eliminate double taxation on income and prevent tax avoidance and evasion.

The DTA entered into force on 15 July 2026 and will generally take effect in Myanmar from 1 April 2027 (FY 2027-2028), including the provisions on Withholding Tax (“WHT”) relief and other treaty benefits.

Key treaty provisions include:

Permanent Establishment (PE): A PE may arise where a construction, installation, or assembly project continues for more than six months, or where services (including consultancy services) are provided in the other country for more than 183 days within any 12-month period. Businesses with long-term projects or cross-border personnel deployments should assess their PE exposure.

Dividends: A reduced WHT rate of 10% applies where the beneficial owner is a company (other than a partnership) that holds at least 25% of the share capital in the dividend-paying company throughout a 365-day period that includes the dividend payment date. Otherwise, a 15% WHT rate applies.

As Myanmar currently does not impose WHT on dividend payments, the dividend article may be more relevant where dividend income is sourced from Belarus, or if either country introduces dividend withholding tax rules in the future.

Interest: The DTA reduces Myanmar WHT on interest paid to Belarus residents from 15% to 12%, subject to the treaty conditions. A full exemption may apply for interest paid to certain government entities, and qualifying state-owned financial institutions.

Royalties: The DTA reduces Myanmar WHT on royalties from 15% to 10%. Royalties generally include payments for the use of or the right to use intellectual property such as copyrights, patents, trademarks, software, know-how, and certain industrial, commercial, or scientific equipment.

Fees for Technical Services (FTS): The DTA provides for a maximum WHT rate of 10% on fees for managerial, technical, and consultancy services. Businesses should compare the treaty provisions with applicable domestic tax rules to determine the most favourable tax treatment.

Capital Gains: Myanmar may tax gains from the sales or transfer of shares in a Myanmar company where more than 50% of the value derives from immovable property or where the seller held at least 35% shareholding in the Myanmar company during the 365 days before the disposal.

Businesses and individuals engaged in cross-border transactions between Myanmar and Belarus should review the DTA to determine whether treaty relief is available and ensure that the applicable residency and documentation requirements are satisfied before claiming treaty benefits. Taxpayers should also note that the DTA contains anti-treaty shopping provisions, under which treaty benefits may be denied where obtaining such benefits is one of the principal purposes of an arrangement or transaction.

VDB Loi Myanmar aims to keep you up to date on important regulatory changes that may impact your business and your compliance obligations. If you have questions on these developments or any other matters, please contact the author or your regular VDB Loi adviser.