How much is the child relief under Myanmar PIT?
Myanmar PIT grants resident taxpayers a MMK 500,000 per child per year allowance, deductible from gross salary alongside the 20% basic personal relief. Eligible children are typically dependent and under 18 (or in full-time education). Only one parent claims per child; the relief is not available to non-residents.
Step-by-step calculation
This walk-through assumes a Myanmar tax resident, married with a non-working spouse and two dependent children. The Myanmar tax year runs 1 April – 31 March. Child relief stacks on top of the 20% basic personal relief and any spouse allowance, all applied before the Union Tax Law 2025-2026 brackets.
Step 1 — Apply the 20% basic relief and dependant allowances
Resident taxpayers may claim MMK 500,000 per dependent child per year. Eligible children are typically those under 18 or in full-time education and financially dependent on the taxpayer. Only one parent claims per child; the household decides which.
| Annual gross salary | MMK 12,000,000 |
| Less: 20% basic personal relief | − MMK 2,400,000 |
| Less: spouse allowance | − MMK 1,000,000 |
| Less: child allowance (2 × MMK 500,000) | − MMK 1,000,000 |
| Annual taxable income | MMK 7,600,000 |
Step 2 — Apply the Union Tax Law 2025-2026 brackets
1 Lakh (L) = MMK 100,000.
| Annual taxable income | Marginal rate |
|---|---|
| 1L – 20L (MMK 0 – 2,000,000) | 0% |
| 20L – 100L (MMK 2,000,000 – 10,000,000) | 5% |
| 100L – 300L (MMK 10,000,000 – 30,000,000) | 10% |
| 300L – 500L (MMK 30,000,000 – 50,000,000) | 15% |
| 500L – 700L (MMK 50,000,000 – 70,000,000) | 20% |
| 700L & above | 25% |
Applied to MMK 7,600,000 of taxable income:
| Band | Amount in band (MMK) | Rate | Tax (MMK) |
|---|---|---|---|
| First 2,000,000 | 2,000,000 | 0% | 0 |
| Next 5,600,000 | 5,600,000 | 5% | 280,000 |
| Annual PIT | MMK 280,000 | ||
Step 3 — Convert to monthly withholding
- Monthly PIT withheld: MMK 280,000 ÷ 12 ≈ MMK 23,333/month
- Monthly gross salary: MMK 1,000,000
- Monthly PIT-only net: MMK 976,667
What about SSB and the true net salary?
Child relief affects PIT only. SSB is unaffected: 2% on wages capped at MMK 300,000/month (max MMK 6,000/month employee), employer adds 3% (max MMK 9,000/month).
| Monthly gross | MMK 1,000,000 |
| Less: PIT | − MMK 23,333 |
| Less: SSB (employee, capped) | − MMK 6,000 |
| Monthly take-home | MMK 970,667 |
Employer takeaway
Apply MMK 500,000 per dependent child per year, deducted before brackets. Require a one-time declaration listing each child's name, date of birth, and education status; refresh annually. Only one parent claims per child. Remit PIT to IRD by the 15th of the following month, file annual reconciliation by 30 June, and retain payroll and dependant records for 7 years.
Common variations to watch for
- Both parents employed — agree which parent claims; the other gets MMK 0 child relief.
- Adult children in full-time university — typically eligible up to course completion. .
- Newborn during the tax year — relief typically applies for the year of birth. Update declaration with birth certificate.
- Combine with spouse relief when the other parent has no income.
- Non-resident expats — flat 25%, no child relief.
Common child-relief mistakes
- Both parents claiming — IRD audits will reverse one set of allowances.
- Claiming for adult earning children — only dependents qualify.
- No documentation on file — keep birth certificates and education proof. See end-to-end PIT walk-through.
- Myanmar Income Tax Law (as amended) — child allowance and dependant reliefs
- Union Tax Law 2025-2026 — Section 5(a) (PIT brackets)
- Social Security Law 2012 — SSB 2%/3% rates and MMK 300,000 wage-base cap
Related questions
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