Step-by-step calculation
This walk-through assumes a Myanmar tax resident, single, supporting one dependent parent over 60. The Myanmar tax year runs 1 April – 31 March. Parent relief stacks with the 20% basic personal relief and any spouse or child allowances, all applied before the Union Tax Law 2025-2026 brackets.
Step 1 — Apply the 20% basic relief and parent allowance
Resident taxpayers may claim MMK 1,000,000 per parent per year, typically for parents over 60 who are financially dependent on the taxpayer. Each parent counts separately, so a taxpayer supporting both mother and father can claim MMK 2,000,000.
| Annual gross salary | MMK 12,000,000 |
| Less: 20% basic personal relief | − MMK 2,400,000 |
| Less: spouse / child allowances | 0 (single) |
| Less: parent allowance (1 parent) | − MMK 1,000,000 |
| Annual taxable income | MMK 8,600,000 |
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 8,600,000 of taxable income:
| Band | Amount in band (MMK) | Rate | Tax (MMK) |
|---|---|---|---|
| First 2,000,000 | 2,000,000 | 0% | 0 |
| Next 6,600,000 | 6,600,000 | 5% | 330,000 |
| Annual PIT | MMK 330,000 | ||
Step 3 — Convert to monthly withholding
- Monthly PIT withheld: MMK 330,000 ÷ 12 = MMK 27,500/month
- Monthly gross salary: MMK 1,000,000
- Monthly PIT-only net: MMK 972,500
What about SSB and the true net salary?
Parent relief affects PIT only. SSB is independent: 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 27,500 |
| Less: SSB (employee, capped) | − MMK 6,000 |
| Monthly take-home | MMK 966,500 |
Employer takeaway
Apply MMK 1,000,000 per dependent parent per year (typically over 60), deducted before brackets. Require a written declaration with the parent's name, date of birth, and a statement of dependency. Only one child of the parent claims the relief in any tax year. Remit PIT to IRD by the 15th of the following month, file annual reconciliation by 30 June, and retain documentation for 7 years.
Common variations to watch for
- Two dependent parents — claim MMK 2,000,000 (1M × 2).
- Multiple siblings supporting same parent — only one sibling claims per tax year; coordinate before filing.
- Parent receives a small pension — eligibility depends on whether the pension makes them non-dependent. .
- Combine with spouse relief and child relief for full-household claims.
- Non-resident expats — no parent relief; flat 25% applies.
Common parent-relief mistakes
- Multiple siblings claiming for the same parent — IRD audits will reverse the duplicate.
- Claiming for non-dependent parents — parents with full income are excluded.
- Skipping documentation — keep birth/citizenship records and a dependency declaration. See employee record list.
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