Other

(a)Taxation on Salary

• For the co-operative staff, the employer has to deduct at source deduct the income tax from the monthly salaries of the staff who get the income above 4.8 million in a year. It can be calculated in the head “Salary” under the “Taxability” of “Individual”.

(How to forecast the tax due is available in the Tax Calculator Link.)

• The tax must be deducted at source by the employer at the time of payment. So as to withhold so, the advanced tax will have to be forecasted and deducted in installing from the income of the whole year in accordance with the sample calculation. The form of monthly report is IRD (IT) – 15.
• The co-operative’s chairman shall file the annual salary (employment’s income) return in the form (Patakha (wanga) -16) within three months after the end of Income Year.

(Forms are available in the forms & publications link.)

(b)Withholding Tax

• In accordance with Notification 47/2018, there is no necessity to withhold tax at the time of making payment for resident citizens and resident foreigner by a company through contracts as inland purchasing of good, performing operations and providing services. However, payment to non-resident foreigners, 2.5% shall be withheld.

(c)Tax applied on auction and tenders

Stamp Duty

• When contracting between a co-operative and tender-winning entrepreneur, the 1% of the amount of the contract (maximum 150000 kyat) and the stamp duty shall be paid by the tender winning entrepreneur.

Commercial Tax

• According to the contract value, the calculated commercial tax shall be paid with the name of the tender-winning entrepreneur. The tender-offering cooperative’s name and nature of work shall be mentioned in the payment receipt.

Income Tax

• When doing the payment according to the contract, the tender-offering cooperative does not need to pay the withholding tax (2%) with the name of the tender-winning entrepreneur. However, if it is a foreigner living in abroad, 2.5% shall be withhold and payment should be done.