The Myanmar Internal Revenue Department (“IRD”) recently issued a notice with regard to the implementation of the Integrated Tax Administration System (“ITAS”). This is an electronic system that aims to modernize tax administration procedures in Myanmar starting FY 2019-2020.
The aim of the ITAS is to implement an electronic-based system that will administer the tax processes within the IRD in order to improve the accuracy of taxpayer data and to maintain confidentiality of information. Currently, the IRD’s tax administration processes are mostly performed by paper-based submissions such as filing tax returns and issuing self-assessment confirmation letters.
The benefits of using the ITAS, from a taxpayer point of view, are as follows:
- Easier tax registration, tax return filings, and tax payment as all processes will be online-based;
- Fewer requirements to go to the tax office (compared to the current scenario where filing is manually performed);
- Access to tax clearance or assessment orders (downloadable);
- Easier communication between the IRD and the taxpayer; and
- Easier tax refund procedures.
The ITAS will be implemented starting from financial year 2019-2020 and is expected to be fully implemented by 2030. The ITAS will be rolled out in five phases:
- Phase 1: Large Taxpayers’ Office (“LTO”) and the Medium Taxpayers’ Office (“MTO”) No. 1.
- Phase 2: IRD Head Office and the MTO No. 2.
- Phase 3: MTO No. 3 and MTO No. 4 (to be created).
- Phase 4: Grade-A tax offices in Yangon and Mandalay Divisions.
- Phase 5: All other tax offices.
The IRD has not yet provided specific details on when the ITAS will be implemented for the LTO and MTO No. 1. Currently, the online process is only applicable to payment procedures under the LTO and MTO and does not involve online registration and tax return filing.
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.