Withholding Tax in Myanmar (“WHT”) has been reduced effective from 1 April 2017.
The Ministry of Planning and Finance issued Notification 2/2017 (“Notification 2”) on 10 January 2017 which will reduce a range of WHT payments.
The key changes are as follows:
|Kind of payment||Residents||Non-residents|
|Interest payment for a loan or indebtedness or a transaction of a similar nature.||None (no change)||15% (no change)|
|Royalties for the use of licenses, trademarks, patent rights, etc.||10% (currently 15%)||15% (currently, 20%)|
|Payment for the purchase of goods, work performed or supply of services, and hiring arrangements within the country under a tender, contract, quotation or other modes.||2% (no change)||2.5% (currently 3.5%)|
Notification 2 reiterates that a person or entity disbursing money will not be excused from its obligation to deduct WHT for the simple reason that the payee refuses to accept payment with WHT deductions. Under the law, WHT tax must be reported within seven days from payment.
Should you need any advice on any legal or compliance matters, please contact [email protected]