Our Tax Team would like to remind you that the deadline for filing corporate tax returns for the fiscal year ending 31 March 2025 (“FY 2024-2025”) in Myanmar is fast approaching. All individuals, businesses, and non-profit organizations doing business in Myanmar must ensure their annual tax returns are filed no later than 30 June 2025.

The tax returns due by 30 June are as follows:

• Annual Corporate Income Tax return
• Annual Salary Statement for employees
• Annual Consolidated Capital Gains Tax return (if applicable)
• Annual Commercial Tax return

Corporate Income Tax (“CIT”)

For companies registered with the Large Taxpayers Office (“LTO”) or Medium Taxpayers Office (“MTO”) using the Internal Revenue Department’s (“IRD”) e-filing system, the annual CIT return must be submitted through the e-filing account. The submission should include the approved form and any required attachments.

Companies registered with local township tax offices or other offices without e-filing capabilities must manually submit their CIT return along with financial statements or audited financial reports to the appropriate tax office. This can be done in person, by mail, or via email.

Taxpayers mandated to file electronically must also submit a Taxpayer’s Signature document, bearing the original signature of the authorized representative, to their registered tax office by 30 June 2025. The form is available for download here.

Annual Salary Statement for Employees

Individual salary earners are exempt from filing an annual tax return. Instead, employers are responsible for submitting an Annual Salary Statement (PaTa Kha (Wa Nga) – 03-07) on behalf of their employees via their e-filing account.

Employers must also provide employees with Form 15(A), which serves as proof of PIT payments made during the fiscal year.

Consolidated Capital Gains Tax (“CGT”)

Taxpayers who sold, transferred, or exchanged capital assets in Myanmar (e.g., land, buildings, vehicles, or shares) during FY 2024-2025 are required to submit a consolidated annual CGT return with supporting documents through the e-filing system. This consolidated return is in addition to the transactional CGT return that is filed within 30 days from the date of the sale of the capital assets.

Commercial Tax (“CT”)

Companies involved in manufacturing, trading, importing goods, or providing services (except those exempted under the CT Law or Union Tax Law) are subject to CT. However, businesses with revenue below MMK 50 million (approx. USD 23,800) for FY 2024-2025 are generally exempt from CT, unless they have voluntarily opted to register for CT during the year.

For those registered with e-filing-enabled offices, the CT return must be filed electronically using the approved form and relevant attachments. The return must be submitted even if no CT transactions occurred during the fiscal year. Additionally, details of the CT certificates below should be submitted:

• Pa Ta Kha (Ka Tha Kha) 05-01 (Local Purchase CT Form);
• Pa Ta Kha (Ka Tha Kha) 05-02 (Importation CT Form);
• Pa Ta Kha (Ka Tha Kha) 05-03 (Tax Offset Confirmation Form); and
• revenue reconciliations when there are discrepancies between the CIT and CT reports.

For companies registered with tax offices without e-filing systems, CT returns and attachments must be submitted directly to the respective tax office.

Penalties on late filing of returns

The IRD may impose the following penalties if annual tax returns are not filed on time:

• 5% of the tax due, plus an additional 1% for each month (or the proportionate amount if less than a month) from the due date of the return until the date of the IRD’s assessment
• MMK 100,000 (approx. USD 48), whichever is higher.

In cases where a taxpayer is found to have intentionally provided false information or omitted critical details that reduce their tax liability, the following penalties may apply:

• 25% of the underpaid amount for discrepancies under MMK 100 million (approx. USD 47,600) or up to 50% of the tax payable, or
• 75% of the underpaid amount for discrepancies exceeding MMK 100 million or 50% of the tax payable.

If a taxpayer intentionally fails to file a tax return to obstruct or interfere with the administration of taxes under the Tax Administration Law, the taxpayer is committing an offense. If convicted, the taxpayer may be fined K250,000, sentenced to up to one year in prison, or both.

Our team is well-equipped to assist you with your tax compliance filings in Myanmar. Let us know how we can help with your tax filing to avoid penalties and ensure compliance with your tax obligations in the country.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.