Indonesian tax residents with controlling holdings in overseas entities should ensure that they fully consider the impact of recent changes. Many will find that they face a significant increase in taxable income THIS YEAR. The changes referred to are brought about by MoF regulation 107/PMK.03/2017, Indonesia’s new CFC legislation, which states that any profits made by […]

Although many taxpayers think that the withholding tax (“WHT”) regime in Myanmar has only been in place since 2010, it has actually been on the books since the enactment of Income Tax Law in 1974. With the issuance of Notification 41/2010, a formal WHT regime began to be implemented in Myanmar. The WHT regime is […]

To obtain the benefits from a tax treaty (DTA) between Indonesia and a DTA partner country, certain administrative requirements must be fulfilled. From 1 August 2017, these requirements will change significantly and all persons who enter into cross border transactions involving Indonesia and a DTA partner country should be aware of the impact.

The Myanmar regime of investment-related tax incentives has been updated by the new “Investment Rules”, officially known as Notification 35/2017 (“Rules 2017”). One of the key issues for investors is the tax exemption for expansion of projects that already received an MIC permit under the Foreign Investment Law 2012 (FIL). 

A shifting economic and political landscape is driving significant changes in Myanmar’s tax sector. Many amendments have been enacted in this fiscal year, including the changes announced in the Union Tax Law 2017.

On 11 January 2017, the Ministry of Finance released Instruction No. 0077/MOF on the Implementation of the Law on Value Added Tax (“the Instruction”) to clarify the rules on value added tax (“VAT”). The Instruction heralded in quite a few changes for the financial sector. Now, with four months of experience seeing it put into […]

1. The legal system As the legal system of Myanmar has its roots in the English common law system, laws in Myanmar are similar to English law. 2. Are there restrictions on foreign investment ownership? The Myanmar Investment Commission (MIC) from time to time issues notifications and regulation covering investment by foreign investors in various […]

Just letting you know that a new Draft Union Tax Law in Myanmar has been released proposing an 8% Special Goods Tax (SGT) on import, sale and export of LNG. SGT was introduced in 2016 with the enactment of Special Goods Tax Law effective starting from 1 April 2016 (FY2016-2017). SGT rates will be announced […]

On 11 January 2017, the Ministry of Finance issued Instruction No. 0077/MOF (“the Instruction”) to implement and further clarify the provisions under the Amended VAT Law No. 52/NA dated 23 July 2014. Below are the main points covered in the Instruction: VAT registration requirements for foreign contractors in Laos for 90 days and more The […]

From 1 April 2017, the withholding tax on interest payment to the Myanmar branches of foreign banks will no longer apply. However, foreign lessors of equipment will face a new 2.5% withholding tax. Also, companies paying royalties on trademarks and other intellectual property will need to apply new rates.   The MOPF released Notification 2/2017 (“new Notification”) […]

The Law provides that fringe benefits provided to employees working in Myanmar will be subject to Personal Income Tax (“PIT”). According to section 9 of the Income Tax Law (“ITL”) “any person who receives or has accrued salary, wages, annuity, bonuses, awards and fees or commissions received in lieu of or in addition to the […]

Slowly but surely, experience is building up with respect to project finance and international corporate finance for companies and projects in Myanmar. With the many different deals that we have completed, we prepared a quick overview of the key things to know. We also touch upon some of the remaining hot issues. Highlights of this […]

Profit tax policy has changed in 2016 for many reasons, one of the main factors contributing to the change in orientation being the lack of tax resources. Thus, with the 2016 profit tax return filing deadline looming, it’s a good time for Lao companies to thoroughly review their tax risk areas and the effects of […]

If you answered YES to ANY of the above in relation to 2016, we recommend that you give serious consideration to the additional requirements set out below[1] If your Indonesian entity has any transactions with related parties (shareholders, owners, subsidiaries) and any of the following criteria apply: Entity revenues above IDR 50bn (annualized) OR Value of goods […]

“Oh, what a tangled web we weave, when first we practice to deceive”. Dealing with issues arising from the Indonesian tax amnesty has led to some questions on the veracity of the concept underlying this quote: dishonesty leads to more and more complexity as one covers tracks and actions and eventually the ‘perpetrator’ is caught […]

Tax Amnesty – What Next? We are now into the second phase of the tax amnesty. Ultimately the first phase was successful with a rush of submissions in the final weeks. Many taxpayers may have missed out, unable to arrange their documentation or calculations in time. Many SMEs may still be considering applications as they […]

The applicability of value added tax (“VAT”) on banking activities has shifted from a broad exemption regime under VAT Law No. 04/NA dated 26 December 2006 – “operations relating to banking services, financial institutions” – to a limited exemption scope under VAT Law No. 52/NA dated 23 July 2014 – “deposit interest, loan interest from […]

The ‘Carrot’ and the ‘Stick’ At the end of last month, we provided comment on the passing of the Tax Amnesty Bill and highlighted that the Bill itself left many questions unanswered. The full text of our previous commentary is set out below. The implementing regulations will go some way towards addressing these but many issues […]

Recently, the Minister of Labor and Social Welfare issued Decision No. 1740/LSW dated 25 April 2016 to determine a minimum and increase secured salary for social security purpose. The ceiling of or maximum secured salary for calculation of social security contribution will be increased up to LAK4.5 Million, which is five times of minimum wage […]

The truthful answer to that is probably no. There are too many uncertainties regarding how this will be implemented for many who are in the position to take advantage to do so. Setting aside, if we may, the moral arguments for and against this long-awaited bill, the fact is that it is now upon us […]