On 8 August 2023, the Ministry of Economy and Finance issued Instruction No. 018 MEF.NT.GDT (the “Instruction”) to provide guidance to taxpayers on the procedures for claiming value added tax (“VAT”) credits and refunds. The Instruction aims to facilitate the VAT refund process, reduce uncertainties and disputes, and encourage voluntary compliance from taxpayers.

This instruction was issued to advise all entities involved in cigarette importation or the distribution of imported cigarettes on the implementation of value added tax (“VAT”), as outlined below:

The Internal Revenue Department (“IRD”) has recently made an announcement on a transformational change in the taxpayer registration process. In order to facilitate the taxpayer registration with the IRD efficiently and effectively, the process has been changed from “Manual Submission to the IRD” to “Electronic Registration Management System (“ERMS”)”. The taxpayers can now obtain Taxpayer’s […]

As a regulatory measure, the Ministry of Planning and Finance (the “MOPF”) issued a new Standard Operating Procedure (“SOP”) on 1 May 2023 regarding offshore remittances and required tax documentation. According to the SOP, the entrepreneurs, companies, organizations, and individuals are now required to provide certain tax documentation, such as tax payment receipts or tax […]

The Central Bank of Myanmar (“CBM”) issued Directive No. 2/2023 on 25 January 2023 requiring that withholding tax (“WHT”) and personal income tax (“PIT”) payment for non-resident taxpayers be made in foreign currency. However, due to lack of clear instructions and further guidance from the Internal Revenue Department (“IRD”),we noted that taxpayers still made WHT […]

The Union Tax Law 2023 (the “UTL 2023”) was enacted on 30 March 2023 by the State Administration Council. The UTL 2023 applies to financial year (“FY”) 2023-2024 starting from 1 April 2023 and ending on 31 March 2024. The effective date of the UTL 2023 is 1 April 2023. The major changes in the […]

The General Department of Taxation (“GDT”) issued a notification to notify taxpayers under the self-declaration regime of their obligation to file the 2022 annual tax on income return and to pay tax as follows:

The General Department of Taxation (“GDT”) issued a notification announcing the 2022 market interest rates for loans. The rates were determined by calculating the average annual interest rate of 11 large local commercial banks. They are as follows: The above interest rates are to be used for the implementation of withholding tax obligations on fringe […]

We share some of the key overviews prepared by VDB Loi team in Vietnam over the course of 2022, as well as a year-end update summarizing some of the latest developments

On 14 November 2022, the General Department of Taxation (“GDT”) issued a new instruction, No. 27185 GDT, on the hanging or display the tax registration documents at the business premises and this instruction requires all enterprises to hang or display their valid tax registration documents at each business premises as set out below: 1. Head […]

The Ministry of Labor and Employment introduced 101 new amendments to the Labor Rule 2015, on 01 September 2022. There are some major and minor changes in the newly amended rule. Among the major changes, conduct towards women, maternity benefits, arrangement of health centers that will provide consultation to women are significant. As per the […]

As noted in a number of our previous tax alerts, implementation of VAT on e-commerce began in April 2022. Under the self-assessment regime, the regulations require that taxpayers apply the VAT reverse charge system to declare and pay 10% VAT to the General Department of Taxation (“GDT”) on any digital goods, services or e-commerce activities […]

The Sub-Decree specifies new Tax on Income (“TOI”) thresholds for the taxable income earned by physical persons, sole proprietorships, and the distributive share of each member of a partnership that is not classified as a legal entity. In addition, the Sub-Decree sets out new Tax on Salary (“TOS”) thresholds for salary income. The new annual […]

The Central Bank of Myanmar (“CBM”) issued Notification No. 195/2022 to Union Ministers, Regional or State Governments, City Development Committees of Nay Pyi Taw, Yangon and Mandalay on 25 May 2022 directing domestic payments to be made in Myanmar Kyat (“MMK”).   This is a follow-up to Notification no. 12/2022 issued on 3 April 2022 […]

In this briefing the team of VDB Loi (Vietnam) answers to the most frequently raised questions relating to the provision of foreign loans to companies in Vietnam. This article generally assumes that parties are looking to implement long-term financing for a company registered in Vietnam. Note that additional requirements may apply to certain specifically regulated […]

Following postponement by the Ministry of Finance of the date for submission of the FY2021 annual financial statements (the “FS”), the deadline of 31 May 2022 set by Notice No. 933/MOF dated 31 March 2022 is fast approaching. Are you ready? Is your document checklist completed? Are you aware of the income tax rules on […]

Myanmar has double taxation agreements (“DTAs”) in force with eight countries: the United Kingdom, Singapore, Malaysia, Thailand, Vietnam, India, the Republic of Korea, and Laos, with a number of other DTAs in the draft stage, including Indonesia and Bangladesh. Accordingly, the tax imposts may be reduced by any DTAs that are currently in effect. The […]

In accordance with the notification issued by the Central Bank of Myanmar on 3 April 2022 regarding the conversion of USD into MMK within one working day, the Ministry of Commerce (“MOC”) has confirmed that it will assist importers/exporters regarding the facilitation of applications to buy USD used for their businesses with the Foreign Exchange […]

As required by Notification 510/2021 issued by the Ministry of Planning, Finance and Industry, when calculating Personal Income Tax (“PIT”) for the six-month interim budget year (1 October 2021 to 31 March 2022), employees’ monthly fixed income items, such as their monthly salary and monthly fixed allowances must be annualized (i.e. multiplied by two) to […]

Recently, the Trade Department of the Ministry of Commerce issued Newsletter No. 2/2022 for additional items requiring an import license. This follows previous action by the department of adding commodity lines 3070 (Newsletter No. 18/2021) and 826 (Newsletter No. 1/2022) to the list of those requiring an import license. Effective from 2 March 2022, the […]