On 10th January 2017, the Internal Revenue Department (“IRD”) of the Ministry of Planning and Finance (“MPF”) announced the Notification No. 2/2017 to reduce the withholding tax rates for payments in Myanmar and abroad and replace the Notification No. 41/2010 and the Notification No. 167/2011 of the IRD. The new WHT rates will become effective from 1st April 2017.
The WHT will be deducted in Myanmar Kyat for payments made in Myanmar and in foreign currency for payment made abroad. It is required to report the WHT within 7 days from the payment date. Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion will apply on a case-by-case basis.