Personal Income Tax Calculation
Personal Income Tax calculation is required to pay income tax if a person earns more than MMK 4.8 million per year.
Reliefs for income tax are following,
- Allowance for Parents: MMK 1,000,000 for Father and MMK 1,000,000 for Mother
- Allowance for Child: MMK 500,000 for a child (under 18 years old)
- Personal Relief: 20% (Maximum MMK 10 Million)
- Spouse Allowance: MMK 1,000,000
- if a person earns less than MMK 4.8 million per year, he/she is not eligible to pay Personal Income Tax.
Image source: IRD
Example for Personal Income Tax calculation, please see below;
if you earn MMK 1,600,000 per month,
Income for 12 month(s) 19,200,000
Personal Relief -3,840,000 20%
Parent Relief -2,000,000 2000000 for father and mother
Spouse Relief -1,000,000 Spouse Relief
Child Relief -1,000,000 Allowance for two children
Social Security -72,000
Total Relief -7,912,000
Taxable Income 11,288,000 Employee needs to pay PIT based on this tax
Total Tax (MMK) 843,200
Monthly Tax (MMK) 70,267
Details for Myanmar Personal Income Tax Calculation
Description Rate Taxable Tax Amount (MMK)
Up to 2 Million 0% 2,000,000 0
2 Million – 5 Million 5% 3,000,000 150,000
5 Million – 10 Million 10% 5,000,000 500,000
10 Million – 20 Million 15% 1,288,000 193,200
Total 843,200 (Yearly Tax)
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