Stupid Tax Laws in Myanmar

In Myanmar, if you gain your income legally, you have to pay more tax.

Just look at this stupid tax law (in graph)

What it says it this:

If you earn more than USD30,000 (I am taking conversion as 1 USD ~ 1000 kyats) per year, your tax rate is 25%. That is if you declare your income to the government.

If you cannot declare your income, your tax rate for similar amount will be 3%! Yes, you didn’t read it wrong, it is frigging 3%. To put it another way, you have to pay 25% tax rate only if you are getting more than 200K USD in illegal income.

That’s a big big loophole in this tax law and if I am doing a local business, I will not be too happy paying too much tax by following the rules whilst the others doing it other way.

It also hurts the young working people (especially re-pats: returning expats who were working in abroad coming back to work in Myanmar) because frankly put, most of them would have high salary tiers and they will have to pay 25% tax rate while they can have much lower tax rates working abroad.

The next government really needs to look into this and make it fair for everyone as I believe if taxation is done correctly, that will be a good revenue generator for the government.

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zinkohlaing Written by:

Hi, I am Zin Ko Hlaing. I'm a big fan of Manchester United and I occassionally write here. Full time Football Manager player, part time trying to understand Internet.

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