These are levied in many cases. Payments made by foreign companies, foreign enterprises and organisations, local companies, purchase of goods, work performed, supply of services, hiring within the country under a tender, contracts, and quotations The withholding tax rate is 2% if the payment is made to a resident and 2.5% if made to a non-resident.
Non-residents pay a 2.5% withholding tax on goods, services and leases procured and a 15% withholding tax on both interest and royalties paid. Any non resident in receipt of interest will come under a withholding tax stipulation, at the rate of 15%. The is no withholding tax for a resident on interest received.
Royalties attract different tax bands. A non-resident is liable to tax of up to 20%. For a resident the rate is 15%. There are Government royalties applicable in certain sectors, these include; Petroleum, Forestry, Fishing and Mining.
Dividends are not subject to tax.
This summary can only be a brief snapshot of the current fiscal landscape. Laws are changing very fast in Myanmar with new guidelines appearing rapidly, some with little pre-announcement, e.g. 100 percent ownership being authorised since May 9, 2018, for foreign companies in wholesale and retail services. All the changes are highly favourable. The objectives of the Myanmar Government are to drive up investment and further prosperity.