Myanmar Rental Income Tax Guide 2026
Rental income in Myanmar is subject to tax under the Individual Income Tax (IIT) framework. For individuals, rental income is taxed at progressive IIT rates of 0-25%. Corporate landlords are taxed under the standard CIT regime at 22% (resident) or 25% (foreign). The Internal Revenue Department (IRD) administers rental income taxation. Rental expenses may be deductible against rental income.
Overview — Rental Income Taxation
Rental income from property in Myanmar is treated as taxable income under the Myanmar Income Tax Law. Individuals receiving rental income must include it in their annual IIT return and pay tax at progressive rates of 0-25%. Companies receiving rental income are taxed at the standard CIT rate. Landlords may deduct allowable expenses incurred in generating rental income. Rental income from commercial property and residential property are both subject to tax.
Individual Landlords — IIT Rates 0-25%
Individuals who rent out property must include the net rental income (gross rent minus allowable expenses) in their annual income for IIT purposes. The net rental income is added to other income sources and taxed at progressive rates. The MMK 4.8M annual threshold applies to aggregate income. Rent received should be declared in the annual tax return filed by 30 June following the end of the tax year.
Allowable Deductions
Landlords may deduct the following expenses from gross rental income: property management fees, repairs and maintenance costs (not improvements), insurance premiums, property taxes and registration fees, interest on loans used to finance the property, depreciation on the building (not land), and other expenses directly related to the rental activity. Capital improvements are not deductible but may be added to the cost basis for CGT purposes.
Corporate Landlords
Companies that earn rental income are taxed at the standard CIT rate of 22% for resident companies or 25% for foreign companies. Rental income is treated as ordinary business income for companies. Companies may deduct all expenses incurred in earning rental income. Losses from rental activities may be offset against other income.
FAQs
Do I need to declare rental income on my tax return?
Yes, rental income must be declared in your annual IIT return. Net rental income (after allowable deductions) is added to your other income and taxed at progressive rates.
Can I deduct mortgage interest on rental property?
Yes, interest on loans used to acquire, construct, or improve rental property is generally deductible against rental income.
What expenses are not deductible?
Capital improvements that increase the value of the property are not deductible as expenses but may be added to the cost basis. Personal use of the property may reduce deductible expenses proportionally.
Disclaimer
This guide provides general information about Myanmar rental income taxation for the 2026-27 tax year. Tax laws may change. Always consult with a qualified Myanmar tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.