Step-by-step calculation
This explainer covers who is on the hook for PIT in Myanmar and how that flows through payroll. The Myanmar tax year runs 1 April – 31 March. The default scenario assumed for the worked example below is a Myanmar tax resident, single, with no dependants.
Who is liable
- Resident individuals — present in Myanmar ≥ 183 days in the tax year. Liable on worldwide income, taxed at progressive 0–25% bands after the 20% basic personal relief.
- Non-resident individuals — present < 183 days. Liable only on Myanmar-source income, taxed at a flat 25% with no reliefs.
- Myanmar citizens working abroad — typically resident if they meet the 183-day test; foreign-source salary income may have specific carve-outs.
- Diplomatic / consular staff — generally exempt under the Vienna Conventions and Myanmar's bilateral practice.
Step 1 — Apply the 20% basic personal relief (residents only)
Resident salaried employees get a 20% basic relief on assessable salary income, capped at MMK 10,000,000/year. Non-residents get no relief.
| Annual gross salary (resident, MMK 8,000,000) | MMK 8,000,000 |
| Less: 20% basic personal relief | − MMK 1,600,000 |
| Less: spouse / child / parent allowances | 0 |
| Annual taxable income | MMK 6,400,000 |
Step 2 — Apply the Union Tax Law 2025-2026 brackets
1 Lakh (L) = MMK 100,000.
| Annual taxable income | Marginal rate (resident) |
|---|---|
| 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 6,400,000 of taxable income:
| Band | Amount in band (MMK) | Rate | Tax (MMK) |
|---|---|---|---|
| First 2,000,000 | 2,000,000 | 0% | 0 |
| Next 4,400,000 | 4,400,000 | 5% | 220,000 |
| Annual PIT | MMK 220,000 | ||
Step 3 — Convert to monthly withholding
- Monthly PIT withheld: MMK 220,000 ÷ 12 ≈ MMK 18,333/month
- Monthly gross salary: MMK 666,667
- Monthly PIT-only net: MMK 648,334
What about SSB and the true net salary?
Liability for SSB is separate from PIT but tracks the same employer-employee relationship. Employees pay 2% SSB on wages capped at MMK 300,000/month (max MMK 6,000/month). Employers add 3% (max MMK 9,000/month).
| Monthly gross | MMK 666,667 |
| Less: PIT | − MMK 18,333 |
| Less: SSB (employee, capped) | − MMK 6,000 |
| Monthly take-home | MMK 642,334 |
Employer takeaway
Determine each employee's residency status at hire and re-check at year-end. Withhold residents via the progressive 0–25% bands after the 20% basic relief; withhold non-residents at flat 25% on Myanmar-source income with no relief. Remit PIT to IRD by the 15th of the following month, file annual reconciliation by 30 June, and retain residency evidence (passport stamps, contracts) for 7 years.
Common variations to watch for
- Mid-year residency switch — track the 183-day count and reconcile at FY-end.
- Short-term assignees — see short-term assignment treatment.
- Treaty residents — check applicable double-tax treaty for relief from withholding.
- Directors and freelancers — separately liable based on payment classification.
- Two-employer scenarios — both employers withhold; year-end reconciliation matches total liability.
Common liability mistakes
- Treating expats as residents from day one — verify 183-day presence first. See resident vs non-resident.
- Forgetting non-resident flat 25% — no bracket benefit applies.
- Letting employees ignore filing — the employer PAYE is preliminary; the employee remains the taxpayer of record.
We publish practical, legally-grounded HR guidance for Myanmar employers. Each piece is reviewed by our compliance team against current MLIP and Labor Law requirements.