Personal tax allowances apply and are defined in guidelines for personal income tax.
There are a wide range of tax benefits and exemptions for companies, notably for business activities in Special Economic Zones. Special rates apply, allowing up to 50 percent reduction on tax for products manufactured in Myanmar and exported.
Business costs can be deducted for tax purposes, defined as expenses incurred in the operation of the business.
Depreciation rates for fixed assets should be reviewed together with rates outlined in Income Tax rates. A full year of depreciation in year one of a purchase may be recorded:
Buildings: 1.25% to 10%.
Interior fittings: 5% to 10%.
Machinery: 2.5% to 20%.
Vehicles: 12.5% to 20%.
Other fixed: 5%.
The rate of 5% applies on net monthly salary. Of this the employers pay 3%. These have a ceiling of MMK 15,000. Companies automatically deduct these contributions from salary payments. All transactions being in MMK.
Employment laws provide foreign nationals the same protection as for Myanmar nationals when employed in Myanmar. A Visa is required.
There is a draft Foreign Worker Law, which would require prospective employees from outside Myanmar to provide copies of qualifications and or work experience, with further requirements pertaining to duration of stay. But clarity is still absent on numerous aspects and definitions, for example relating to or clarifying the duration of an appointment, the definition of a foreign employee or an expert, exemption for members on the board of a Myanmar company.
Healthcare is provided under the Social Security Act, and this includes compensation for injuries or sickness due to employment, there are also maternity benefits.
See Personal Income Tax for Foreigners