Myanmar Cross-Border Tax Guide 2026

Overview — Cross-Border Taxation

Myanmar's cross-border tax framework is governed by the Myanmar Income Tax Law and the double tax treaties that Myanmar has entered into. Non-residents are taxed only on Myanmar-source income. Withholding taxes apply to certain payments made to non-residents including interest, royalties, and service fees. Myanmar has a relatively limited DTT network with approximately 10 treaties, primarily with ASEAN countries and key trading partners.

Withholding Tax Rates

Myanmar imposes withholding tax on the following payments to non-residents at standard rates: interest 15%, royalties 15-20%, and certain service fees. Reduced rates may apply under applicable double tax treaties. Dividends paid to non-residents are generally subject to 0% withholding tax. Rental payments may also be subject to withholding tax.

Double Tax Treaty Network

Myanmar has a limited network of double tax treaties with approximately 10 countries including ASEAN member states (Singapore, Malaysia, Thailand, Vietnam, Laos, Cambodia, Indonesia, Philippines, Brunei) and India. The treaties generally follow the OECD model and provide for reduced withholding tax rates and elimination of double taxation. Treaty benefits are subject to limitation of benefits provisions and anti-abuse rules.

Transfer Pricing

Myanmar has introduced transfer pricing rules based on the arm's length principle. Related-party transactions must be conducted at arm's length prices. Taxpayers must maintain transfer pricing documentation including a master file, local file, and country-by-country reporting for qualifying multinational enterprises. The IRD has the authority to adjust transfer prices and impose penalties for non-compliance.

FAQs

Does Myanmar have many double tax treaties?

Myanmar has a limited DTT network of approximately 10 treaties. This is relatively small compared to regional peers. Treaty negotiations are ongoing with several other countries.

What is the withholding tax rate on dividends?

Dividends paid to non-residents are generally subject to 0% withholding tax in Myanmar. This makes Myanmar favourable for dividend repatriation.

Are foreign companies taxed on worldwide income?

No, non-resident companies are taxed only on Myanmar-source income. Resident companies are taxed on worldwide income.

Disclaimer

This guide provides general information about Myanmar cross-border taxation for the 2026-27 tax year. Tax laws and treaties 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.