How is PIT calculated for expats in Myanmar?
Expats present in Myanmar 183 days or more in a tax year are resident and taxed on worldwide salary income using the same 0–25% Union Tax Law 2025-2026 brackets after the 20% basic relief. Expats under 183 days are non-resident and pay a flat 25% on Myanmar-source income, with no reliefs or allowances.
Step-by-step calculation
This walk-through assumes a foreign-passport employee on a Myanmar payroll (commonly an expat manager seconded to a foreign-invested company in Yangon). Default assumptions: paid in MMK, no spouse/child/parent allowances claimed, no allowable donations. The Myanmar tax year runs 1 April – 31 March. Brackets are from the Union Tax Law 2025-2026 (Section 5). The first decision is whether the expat is resident (≥ 183 days physical presence in the tax year) or non-resident (under 183 days) — that single test changes the entire tax outcome.
Step 1 — Apply the 20% basic personal relief (resident expats only)
A resident expat gets the same 20% basic personal relief on assessable salary as a Myanmar national, capped at MMK 10,000,000/year. Non-resident expats receive no relief and no allowances — the full Myanmar-source salary is taxable at a flat rate.
| Annual gross salary (resident expat) | (your figure) |
| Less: 20% basic personal relief | − up to MMK 10,000,000 |
| Less: spouse / child / parent allowances | 0 in default case |
| Annual taxable income (resident) | = residual |
Step 2 — Apply the Union Tax Law 2025-2026 brackets
Resident expats use the same six progressive bands as Myanmar nationals (1L = 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 (MMK 70,000,000+) | 25% |
Worked illustration — resident expat on MMK 60,000,000/year (taxable = MMK 50,000,000 after 20% relief capped at MMK 10M):
| Band | Amount in band (MMK) | Rate | Tax (MMK) |
|---|---|---|---|
| First 2,000,000 | 2,000,000 | 0% | 0 |
| 2,000,001 – 10,000,000 | 8,000,000 | 5% | 400,000 |
| 10,000,001 – 30,000,000 | 20,000,000 | 10% | 2,000,000 |
| 30,000,001 – 50,000,000 | 20,000,000 | 15% | 3,000,000 |
| Annual PIT (resident expat) | MMK 5,400,000 | ||
For a non-resident expat on the same MMK 60,000,000 Myanmar-source salary: flat 25% × 60,000,000 = MMK 15,000,000. The non-resident pays roughly 2.8× more PIT for the same gross.
Step 3 — Convert to monthly withholding
- Resident expat monthly PIT: MMK 5,400,000 ÷ 12 = MMK 450,000/month
- Non-resident expat monthly PIT: MMK 15,000,000 ÷ 12 = MMK 1,250,000/month
- Monthly gross: MMK 5,000,000
- Resident PIT-only net: MMK 5,000,000 − 450,000 = MMK 4,550,000
What about SSB and the true net salary?
SSB applies to expats only when the employer has registered them under the Social Security Scheme. When registered, employee SSB is 2% on a wage base capped at MMK 300,000/month (max MMK 6,000/month) and employer SSB is 3% (max MMK 9,000/month). Many short-term seconded expats are kept off SSB by agreement with their home-country social security authority.
| Monthly gross (resident expat) | MMK 5,000,000 |
| Less: PIT | − MMK 450,000 |
| Less: SSB (if registered, 2% on cap) | − MMK 6,000 |
| Monthly take-home | MMK 4,544,000 |
Employer takeaway
Test the 183-day rule first. For resident expats, withhold PIT monthly using the 0–25% Union Tax Law brackets after the 20% relief and any dependant allowances. For non-resident expats, withhold a flat 25% on Myanmar-source salary with no reliefs. Remit PIT to IRD by the 15th of the following month, file the annual reconciliation by 30 June, and retain expat payroll records (passport, visa, entry/exit log) for at least 7 years.
Common variations to watch for
- USD-denominated expat salaries — convert to MMK at the Central Bank reference rate on the payment date for IRD filings.
- Split contracts — Myanmar entity pays local portion, foreign parent pays offshore portion. Both can be Myanmar-source if duties are performed in Myanmar.
- Mid-year arrival or departure — count days carefully; one day either side of 183 changes the regime. See short-term assignments under 183 days.
- Tax-equalised expats — gross-up the salary so the employer effectively bears the PIT cost.
- Treaty relief — a few of Myanmar's treaties may exempt short-term assignees; see tax-treaty benefits.
Common PIT mistakes to avoid
- Applying the 20% relief to a non-resident expat — non-residents get no relief; flat 25% applies to gross.
- Counting calendar-year days instead of tax-year days — Myanmar's tax year is 1 April – 31 March, not January–December.
- Forgetting the offshore portion of a split contract — duties performed in Myanmar create Myanmar-source income regardless of where it's paid.
- Skipping the annual reconciliation — even residents on PAYE still file an annual return. See PIT filing forms.
- Union Tax Law 2025-2026 — Section 5(a) (PIT brackets)
- Myanmar Income Tax Law (as amended) — residency, non-resident flat rate
- Social Security Law 2012 — SSB 2%/3% rates and MMK 300,000 wage-base cap
Related questions
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