Step-by-step calculation
The Myanmar tax year runs 1 April – 31 March. The current cycle is FY2025-2026 (1 April 2025 – 31 March 2026), governed by the Union Tax Law 2025-2026. PIT slabs apply after a 20% basic personal relief and any spouse, child, or parent allowances. The default profile in this guide is a Myanmar tax resident, single, with no dependants.
Step 1 — Apply the 20% basic personal relief
Before the slab table is applied, salary income is reduced by the 20% basic personal relief, capped at MMK 10,000,000/year. The cap binds only above MMK 50,000,000/year of salary.
| Annual gross salary | (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 | = residual |
Step 2 — Apply the Union Tax Law 2025-2026 slabs
Six progressive bands. 1 Lakh (L) = MMK 100,000.
| Annual taxable income | Lakh notation | Marginal rate |
|---|---|---|
| MMK 0 – 2,000,000 | 1L – 20L | 0% |
| MMK 2,000,000 – 10,000,000 | 20L – 100L | 5% |
| MMK 10,000,000 – 30,000,000 | 100L – 300L | 10% |
| MMK 30,000,000 – 50,000,000 | 300L – 500L | 15% |
| MMK 50,000,000 – 70,000,000 | 500L – 700L | 20% |
| MMK 70,000,000 and above | 700L+ | 25% |
Worked illustration — salary MMK 30,000,000/year, single, no dependants. Taxable income after 20% relief = MMK 24,000,000.
| Band | Amount in band (MMK) | Rate | Tax (MMK) |
|---|---|---|---|
| First 2,000,000 | 2,000,000 | 0% | 0 |
| Next 8,000,000 (2M–10M) | 8,000,000 | 5% | 400,000 |
| Next 14,000,000 (10M–30M) | 14,000,000 | 10% | 1,400,000 |
| Annual PIT | MMK 1,800,000 | ||
Step 3 — Convert to monthly withholding
- Monthly PIT withheld: MMK 1,800,000 ÷ 12 = MMK 150,000/month
- Monthly gross salary: MMK 30,000,000 ÷ 12 = MMK 2,500,000
- Monthly PIT-only net (before SSB): MMK 2,500,000 − 150,000 = MMK 2,350,000
What about SSB and the true net salary?
Employees pay 2% SSB on wages, capped at the MMK 300,000/month wage base — max MMK 6,000/month. Employers add 3% (max MMK 9,000/month). For a salary above the cap, SSB is fixed at the maximum.
| Monthly gross | MMK 2,500,000 |
| Less: PIT | − MMK 150,000 |
| Less: SSB (employee, capped) | − MMK 6,000 |
| Monthly take-home | MMK 2,344,000 |
Employer takeaway
Apply the six Union Tax Law 2025-2026 slabs (0%, 5%, 10%, 15%, 20%, 25%) to taxable income after the 20% basic relief. Remit monthly PAYE to IRD by the 15th of the following month, file the annual PIT reconciliation by 30 June (FY-end 31 March), and retain payroll records for 7 years.
Common variations to watch for
- Married, no working spouse — MMK 1,000,000 spouse allowance reduces taxable income before slabs.
- Children — MMK 500,000 per child per year, deductible from gross before slabs.
- Non-resident expats — flat 25% on Myanmar-source income, no slabs, no reliefs.
- High earners above MMK 50M — the 20% relief caps at MMK 10,000,000.
- Salary in USD — convert to MMK at the CBM reference rate on the payment date before applying slabs.
Common slab-application mistakes
- Treating the rate as an effective rate — slabs are marginal, applied band by band. See the full calculation walk-through.
- Forgetting the 20% relief — slabs apply to taxable, not gross. See basic relief details.
- Using last year's brackets — confirm the current Union Tax Law each fiscal year.
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