Myanmar’s new income tax and commercial tax law has come into force in the current fiscal year of 2014-15.
Under the new law, people who earn from K2 million to K5 million ($2,083 to 5,208) a year will have to pay 5 percent income tax; those earning from above K5 million up to K10 million have to pay 10 percent; for earners from above K10 million up to K20 million the rate is 20 percent and those who earn above K30 million will have to pay 25 percent, the Internal Revenue Department said.
In the new law, tax reduction is offered for married couples and for those who have children.
Commercial tax will be collected starting from K15 million and tax exemption is offered for 60 items of goods, the department said, warning that those who fail to pay taxes will be fined under the commercial tax law.
According to the department, a total of K3.582 trillion ($3.7 billion) in revenue was collected during 2013-14.
Myanmar’s parliament approved the two tax-related bills in March.
