Residents of Myanmar earning more than 4,800,000 MMK per year (400,000 MMK per month) are required to pay personal income tax (PIT). This applies to salary income, commissions, bonuses, annuities, and fees received throughout the fiscal year.
Fiscal Year
Myanmar's fiscal year runs from April 1 to March 31. Tax obligations are calculated based on total income earned during this period. Employers are responsible for withholding PIT from employee salaries each month.
Tax Brackets
Myanmar uses a progressive tax system with rates ranging from 0% to 25%. The first 2,000,000 MMK of taxable income is tax-free. Income above 70,000,000 MMK is taxed at the highest rate of 25%.
Available Reliefs and Deductions
Taxpayers can reduce their taxable income through several reliefs: a 20% personal allowance on gross income (capped at 10,000,000 MMK per year), 1,000,000 MMK per dependent parent living with the taxpayer (including in-laws), 1,000,000 MMK for a non-earning spouse, 500,000 MMK per qualifying child (unmarried, non-earning, under 18 or in full-time education), Social Security Board (SSB) contributions (2% of salary, capped at 72,000 MMK per year), and life insurance premiums.
Residents earning more than 4,800,000 MMK per year (approximately 400,000 MMK per month) are required to pay personal income tax in Myanmar. If your annual salary is at or below this amount, you are exempt from PIT.
2. What is the fiscal year in Myanmar?
Myanmar's fiscal year runs from April 1 to March 31 of the following year. Tax calculations are based on income earned during this period.
3. What tax reliefs are available in Myanmar?
Myanmar offers several tax reliefs: a 20% personal allowance on total income (capped at 10,000,000 MMK per year), 1,000,000 MMK per dependent parent living with the taxpayer (including in-laws), 1,000,000 MMK for a spouse who is not earning assessable income, 500,000 MMK per qualifying child (must be unmarried, non-earning, and either under 18 or in full-time education), SSB contributions, and life insurance premiums.
4. What are the Myanmar income tax rates for 2025-2026?
Myanmar uses progressive tax rates: 0% on the first 2,000,000 MMK, 5% on 2,000,001 to 10,000,000 MMK, 10% on 10,000,001 to 30,000,000 MMK, 15% on 30,000,001 to 50,000,000 MMK, 20% on 50,000,001 to 70,000,000 MMK, and 25% on income above 70,000,001 MMK. The 2025 Union Tax Law confirmed these rates remain unchanged.
5. How is Social Security Board (SSB) contribution calculated?
Employees contribute 2% of their monthly salary to SSB, with the insurable salary capped at 300,000 MMK per month. This means the maximum employee SSB contribution is 6,000 MMK per month (72,000 MMK per year). This amount is deductible from taxable income.
6. Do non-residents pay income tax in Myanmar?
Non-resident foreigners are taxed on Myanmar-sourced income at the same progressive rates (0-25%) but without any personal tax reliefs or deductions. Non-resident Myanmar citizens pay the lower of: progressive rates with reliefs, or a flat 2% on total salary without reliefs.
7. Is the 20% personal allowance unlimited?
No. The 20% basic allowance is capped at 10,000,000 MMK per year. For example, if your annual income is 60,000,000 MMK, 20% would be 12,000,000 MMK, but you can only claim up to 10,000,000 MMK.
8. Can I claim relief for my parents?
Yes, you can claim 1,000,000 MMK per dependent parent living with you. The term 'parent' includes father-in-law and mother-in-law. You can claim for up to 2 parents.
9. How does Better HR handle Myanmar payroll tax?
Better HR automatically calculates Myanmar PIT using the latest tax brackets and reliefs. It handles monthly withholding, generates payslips with tax breakdowns, and produces statutory reports for filing.