Myanmar restricts property ownership to its citizens!

Rental Income: Property income earned by nonresident foreigners is generally taxed at a flat rate of 35%.

Capital Gains: Capital gains realized by nonresident foreigners are generally taxed at a flat rate of 40%.

Inheritance: There are no inheritance taxes in the country.

Residents: Residents are taxed on their worldwide income.

Myanmar: Overview

Myanmar (pop. 57,641,000; GDP/cap US$154) is one of the most savage military dictatorships still in power, and one of the most closed societies. Its leadership exists largely to enrich itself by whatever means possible. The simple act of having a telephone installed requires a bribe, and the system appears to be institutionalized, with little interest by the military leadership to change matters, since it also helps perpetuate its hold on power. Smuggling of everything from drugs to jade is rife across the porous borders with China and Thailand.

Most overseas development assistance ceased after the junta began to suppress the democracy movement in 1988 and subsequently refused to honor the results of the 1990 legislative elections. The World Bank has approved no new lending for Myanmar since 1987, and has no plans to resume its program.

Foreign investment is highly restricted. Foreigners cannot own land but can lease it for periods up to 30 years, or more if approved by the goevrenment.

TAXES AND COSTS

Last Updated: Oct 14, 2011

Myanmar restricts property
ownership to its citizens

Rental Income: Property income earned by nonresident foreigners is generally taxed at a flat rate of 35%.

Capital Gains: Capital gains realized by nonresident foreigners are generally taxed at a flat rate of 40%.

Inheritance: There are no inheritance taxes in the country.

Residents: Residents are taxed on their worldwide income.

Living There

INDIVIDUAL TAXATION

Residents are taxed on their worldwide income. Married couples are assessed and taxed separately.

INCOME TAX

Income is categorized as (1) income from salary, (2) a profession, (3) business, (4) property, (5) capital gains, and (6) other sources and undisclosed sources. Income from salary and capital gains are assessed separately from other income categories.
Income tax is levied on total income, after deduction of allowable expenditure and depreciation where applicable.

INCOME TAX

TAXABLE INCOME, MMK US$	TAX RATE
Up to 5,000 (US$780)	3%
5,000 – 10,000 (US$1,560)	5%
10,000 – 20,000 (US$3,120)	7%
20,000 – 30,000 (US$4,680)	10%
30,000 – 50,000 (US$7,800)	12%
50,000 – 70,000 (US$10,920)	15%
70,000 – 90,000 (US$14,041)	16%
90,000 – 110,000 (US$17,161)	17%
110,000 – 150,000 (US$23,401)	18%
150,000 – 200,000 (US$31,201)	19%
200,000 – 300,000 (US$46,802)	20%
300,000 – 500,000 (US$78,003)	22%
Over 500,000 (US$78,003)	30%

Residents are entitled to the following deductions:

• Tax relief of MMK5,000 (US$780) for the spouse
• Child tax relief: MMK1,000 (US$156) for each child up to 5 years old; MMK1,200 (US$191) for each child between 5 and 10 years old; MMK1,600 (US$250) for each child between 10 and 15 years old; and MMK2,000 (US$312) for each child over 15 years old
• Basic allowance of 20% of each class of income, but the total basic allowance cannot exceed MMK12,000 (US$1,872) annually
• Life insurance policy premiums of the taxpayer or spouse
• Donations to any religious or charitable institutions or to any funds by a state organization; up to 25% of total income

RENTAL INCOME
Taxable rental income is computed by deducting income-generating expenses from the gross income. However, when it comes to income from immovable property, no depreciation allowance can be deducted.

CAPITAL GAINS TAX

Capital gains realized from the sale of immovable property are taxed at a flat rate of 10%. Taxable capital gains are computed by deducting acquisition costs and transaction costs from the sales proceeds.

 

PROPERTY TAX

Property Taxes

Property taxes are levied on the property’s annual value or the property’s anticipated gross rent if it is leased unfurnished.

PROPERTY TAX
CLASSIFICATION	TAX RATE
General Tax	20% of annual value
Lighting Tax	5% of annual value
Water Tax	12% of annual value
Conservancy Tax	15% of annual value

Myanmar - more data and information

• » Lawyers (attorneys) with property law practices in Myanmar

Ref:globalpropertyguide