On 7 June 2019, the Union Parliament (“Pyidaungsu Hluttaw”) enacted Law No. 20 otherwise known as the Tax Administration Law (“TAL”). This TAL is one of the major pieces of tax legislation being introduced in Myanmar as part of the Internal Revenue Department’s (“IRD”) tax reform program. This Law aims to modernize and provide guidance on the administrative procedures on tax-related matters in Myanmar.
The TAL covers administrative matters concerning the following: (1) the Income Tax Law; (2) the Commercial Tax Law; (3) the Special Goods Tax Law; and (4) other taxes over which the Director General (“DG”) of the IRD has authority vested in him or her under relevant laws.
Among the interesting provisions of the TAL are the inclusion of an advance ruling system, an Anti-Avoidance provision, and the imposition of interest on unpaid or overpaid taxes. Similarly, the TAL also clarified certain provisions under the existing tax laws with respect to tax filing and payment procedures, maintenance of documents, re-assessment of tax returns, changes to the appeal process, and the imposition of penalties, among others.
While the TAL was enacted in June, the Law will only enter into effect on 1 October 2019 or the start of the new financial year in Myanmar.
In this update, we highlight the salient features of the TAL.
We will provide additional updates on Myanmar tax reform once the new regulations and guidance are issued by the authorities.
We trust that you find the above helpful. As always, please let us know if you have any comments or questions.
Partner & Head of the Regional Tax Practice Group
Senior Tax Manager
The information provided in this email 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.