Myanmar Corporate Tax Guide 2026

Overview — Corporate Tax in Myanmar

Corporate tax in Myanmar is governed by the Myanmar Income Tax Law and administered by the Internal Revenue Department (IRD). A company is tax resident in Myanmar if it is incorporated under Myanmar law or if its place of effective management is in Myanmar. Resident companies are taxed on worldwide income; non-resident companies are taxed only on Myanmar-source income. The standard tax year runs from 1 April to 31 March. Companies must register for tax with IRD and obtain a tax identification number (TIN).

Standard Corporate Tax Rate — 22%

The standard corporate income tax rate in Myanmar is 22% of taxable profits for resident companies. Taxable profit is calculated as gross revenue less allowable deductions including operating expenses, depreciation, interest costs, and losses carried forward. Losses may be carried forward for 3 years. Capital allowances (depreciation) are calculated at standard rates. Myanmar has thin capitalisation rules limiting interest deductions.

Foreign Companies — 25%

Foreign companies operating in Myanmar, including foreign branches of overseas corporations, are subject to CIT at the rate of 25% on Myanmar-source income. A foreign company is defined as a company that is not incorporated in Myanmar and does not have its place of effective management in Myanmar. Foreign companies may also be subject to withholding taxes on certain payments.

Special Economic Zone (SEZ) Incentives

Enterprises operating in Myanmar's Special Economic Zones (such as Thilawa SEZ) may qualify for significant tax incentives. SEZ enterprises can benefit from a 0% CIT holiday for the first 5 to 7 years of operation, followed by a 50% reduction for a further period. Additional incentives include exemptions from customs duties on imported capital goods and raw materials, and exemptions from Commercial Tax on certain transactions. SEZ status requires approval from the Myanmar SEZ Central Body.

Tax Depreciation — Capital Allowances

Myanmar allows depreciation deductions on fixed assets at prescribed rates. Buildings and structures: 5-10% per annum (straight-line). Plant and machinery: 15-30% per annum. Computer equipment: 30% per annum. Motor vehicles: 20% per annum. Intangible assets: amortised over the useful life. The straight-line and declining balance methods are permitted.

FAQs

When is the corporate tax filing deadline?

Annual CIT returns must be filed by 30 June following the end of the tax year (31 March). Quarterly provisional tax payments are required based on estimated annual profits.

Can a foreign company operate through a branch?

Yes, foreign companies may establish a branch in Myanmar. The branch is taxed at 25% on its Myanmar-source profits. Branches must register with DICA and obtain a tax identification number from IRD.

What are the thin capitalisation rules?

Myanmar limits interest deductions based on debt-to-equity ratio rules. The specific ratio is determined by IRD regulations, generally limiting related-party debt. Excess interest costs may be disallowed.

Are capital gains subject to CIT?

Capital gains are included in taxable income and taxed at the standard CIT rate. Alternatively, a separate Capital Gains Tax at 10% may apply to gains on shares and property in certain circumstances.

Disclaimer

This guide provides general information about Myanmar corporate tax for the 2026-27 tax year. Tax laws and rates may change. Always consult with a qualified Myanmar tax advisor or the Internal Revenue Department for advice specific to your situation. InvestmentKit does not provide tax advice.