At a Glance : Paying Taxes
2020 Ranking: 129
2020 Distance to Frontier Score*: 63.9 (unchanged from DB2019)
Regional Average (East Asia Pacific): 73.6
More information on Myanmar’s performance in Paying Taxes -Click Here
* The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the lowest per-formance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. (Source; World Bank)
Why does it matter?
Taxes are the price we pay for a stable, more equitable society
- Funding for social programs and public investments.
- Key to building effective government.
But tax rates and burdensome tax administration remain top obstacle to business
Challenges:
- To choose level of tax rates and tax base.
- To design tax compliance system that encourages taxpayer participation
Paying Taxes in Myanmar
| Tax or Mandatory Contribution | Payment (Numbers) | Time (Hours) | Statutory Tax Rate | Tax Base | Total Tax and Contribu-tion Rate (% of Profit) |
| Corporate income tax | 4 | 64 | 25% as of April 1, 2013 | Taxable profits | 26.28 |
| Stamp duty on property transfer | 1 | 4% | Price of sale | 2.42 | |
| Property tax | 1 | 13% | Land and building | 1.75 | |
| Capital gains tax | 1 | Net profit 10% | Capital gains | 0.51 | |
| Employer paid social security contributions | 12 | 111 | 2.5 % | Gross salary | 0.26 |
| Commercial Tax | 12 | 107 | 5 % | Turnover | 0.00 |
| Employee paid social security contributions (jointly) | 0 | Jointly | 1.5 % | 0.00 | |
| TOTALS | 31 | 282 | 31.2 |
