On 31 March 2025, the State Administration Council enacted the Union Taxation Law 2025 (Law No. 6/2025 or “2025 UTL”), which clarifies the tax rates and procedures for income tax, commercial tax, specific goods tax, and gemstone tax in Myanmar. The law is effective on 1 April 2025 or the start of the financial year 2025-2026.
The 2025 UTL retains most of the provisions of the Union Tax Law 2024, but it has introduced changes to the tax rates for specific goods such as cigarettes, cheroot, liquor, and wine.
A. Matters relating to Specific Goods Tax (“SGT”)
The 2025 UTL increased the SGT tiers and rates for cigarettes, cheroots, liquor, and wine. Effective 1 April 2025, the following changes apply:
| Types of Goods | Tier | Tier of Selling Prices | Tax Rate |
| Cigarettes | Lowest | If sale price is a tier of MMK 800 per pack of 20 cigarettes | MMK 14 per cigarette (previously MMK 13) |
| Highest | If sale price is a tier from MMK 1,101 and above per pack of 20 cigarettes | MMK 30 per cigarette (previously MMK 29) | |
| Cheroot | N/A | MMK 2 per item (previously MMK 1) | |
| Liquor | Lowest | If a liter value is between MMK 400 and MMK 2,200 (previously MMK 2,000) | MMK 261 per liter (previously MMK 237) |
| Highest | If a liter value is MMK 28,601 and above (previously MMK 24,001) | 60% of one liter’s value | |
| Wine | Lowest | If a liter value is up to MMK 2,000 (previously MMK 1,400) | MMK 210 per liter (previously MMK 176) |
| Highest | If a liter value is MMK 28,601 and above (previously MMK 22,101) | 50% of one liter’s value |
The SGT rates for these specific goods remain unchanged:
- Tobacco leaf and Virginia Tobacco: 60%
- Cigar, pipe tobaccos, and various kinds of spices for chewing betel leaf: 80%
- Beer: 60%
- Logs, conversions: 5%
- Vans, saloon cars, and others (excluding double cab 4-door pickup trucks, pickup cars, and battery electric vehicles): 10-50%
- Kerosene, petrol, diesel, and jet fuel: 5%
- Natural gas: 8%
B. Matters relating to Commercial Tax (“CT”)
The 2025 UTL does not introduce any changes to CT, and the list of exempt goods and services from the prior year tax law remains the same. The CT rate remains at 5%, with specific rates applying as follows:
- Internet services: 15%
- Sale of SIM cards and related services: MMK 20,000 per SIM card
- Hotel and tourism services: 3%
- Sale of buildings constructed in Myanmar, whether through a long-term lease with the State or a partnership with a lessor: 3%
- Sale of gold jewelry: 1%
- Export sale of electric power: 8%
C. Matters relating to Income Tax
The 2025 UTL does not introduce any changes to income tax.
- The general corporate income tax (“CIT”) rate remains at 22%. Companies listed on the Yangon Stock Exchange are subject to a reduced rate of 17%, while companies in the oil and gas exploration and production sector remain subject to 25%.
- The general capital gains tax (“CGT”) rate remains at 10%, with higher rates of 40-50% applying to the oil and gas sectors.
- The personal income tax (“PIT”) rates remain at 0-25%. Non-resident Myanmar citizens employed overseas are taxed using the lower of the following methods:
- Prevailing PIT rates (0-25%) after deductions for relief and allowances under the Income Tax Law; or
- A flat rate of 2% without deductions.
- Foreign income (other than salary) received by non-resident citizens is taxed at a flat rate of 10% without deductions or relief.
- The income tax for undisclosed sources of income remains at progressive rates of 3-30%.
- The 2025 UTL maintains the requirement for income tax payments to be made in the currency in which the income was earned, which was introduced in the Union Tax Law 2024. This applies to all types of income tax payments, such as CIT, CGT, withholding tax, and PIT.
D. Matters relating to Gemstone Tax
The gemstone tax remains unchanged under the 2025 UTL. Gemstone sales in Myanmar continue to be taxed at a rate of 5-11%, with the rate varying based on the type of gem and whether it is sold as a raw material or as finished jewelry.
In conclusion, the 2025 UTL closely mirrors the provisions of the Union Tax Law 2024, with only minor updates to the tiers and tax rates for certain specific goods. Effective from 1 April 2025, taxpayers should be mindful of the unchanged requirements for income tax payments in foreign currency, as well as the specific provisions related to income tax, CT, and gemstones tax to ensure compliance.
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.
