Business Law and Taxation
Business Law and Taxation covers the Myanmar Companies Law 2017, contract, sale of goods, negotiable instruments, partnership, and the main taxes: income tax, commercial tax, specific goods tax and stamp duty.
Core rules
- A company is a separate legal person; directors owe duties of care, good faith and disclosure of conflicts.
- A valid contract needs offer, acceptance, consideration, capacity, intention and legality.
- Income tax: companies are taxed on taxable profit; individuals pay progressive rates on assessable income after allowances.
- Commercial tax is an indirect tax on goods and services; specific goods tax applies to selected goods such as vehicles, alcohol and tobacco.
- Tax is self-assessed; penalties apply for late filing and underpayment.
Worked example
A resident individual has assessable income of 25m. Using the progressive bands: first 2m at 0% = 0; next 8m at 5% = 400k; next 10m at 10% = 1,000k; remaining 5m at 15% = 750k. Total tax = 2,150k. The effective rate is 8.6%.
Traps
Do not apply the top rate to the whole income; use the marginal bands. Distinguish exempt income from taxable income. Capital gains are taxed separately from ordinary income. Ignore commercial tax on exempt goods and services. Keep contemporaneous records and receipts to support deductions and credits.