2024 Union Tax Law and Its Key Takeaways

The annually enacted Union Tax Law (“UTL”) has been recently issued on 29 March 2024, applying to 2024 – 2025 Financial Year (“FY 2024 – 2025”) starting from 1 April 2024 and ending on 31 March 2025. The 2024 UTL comes into effect on 1 April 2024. The major changes in the 2024 UTL include an increase in specific goods tax rates applied to liquor and wine, and new commercial tax exemptions for importation of goods after repairs under a repair and return customs procedure. 

Below is the summary of changes in the 2024 UTL:

Increase in Specific Goods Tax Rates

In the 2024 UTL, the Specific Goods Tax (“SGT”) rates applied to liquor and wine are increased. The lowest price range of liquor subject to SGT is MMK400 – MMK2,000 to which the SGT rate of MMK 237 per liter applies. The highest SGT rate of 60% of value per liter applies to MMK 24,001 per liter and above. 

As for wine, the lowest price range of wine subject to SGT is MMK 1 – MMK 1,400 to which the SGT rate of MMK 176 per liter applies. The highest SGT rate of 50% of value per liter applies to MMK 22,101 per liter and above.

Difference between the 2024 UTL and the 2023 UTL in respect of SGT rates applied to liquor and wine

Type of Specific Goods	The 2024 UTL		The 2023 UTL
	Different Tiers ranging from:	SGT Rates	Different Tiers ranging from:	SGT Rates
Liquor	MMK 400 to MMK 24,000 per liter; and	MMK 237 to MMK 5,745 per liter; and	MMK 200 to MMK 19,850 per liter; and	MMK 209 to MMK 5,071 per liter; and
	MMK24,001 per liter and above	60% of value per liter	MMK19,851 per liter and above	60% of value per liter
Wine	MMK 1 to MMK 22,100 per liter; and	MMK 176 to MMK 4,532 per liter; and	MMK 1 to MMK 16,600 per liter; and	MMK 92 to MMK 3,724 per liter; and
	MMK 22,101 per liter and above	50% of value per liter	MMK 16,601 per liter and above	50% of value per liter

Changes in Commercial Tax Imposition and Exemptions

There are no significant changes in imposition of Commercial Tax (“CT”). However, the following new category of goods is added to the CT-exempted list: 

• Goods exported for repairs due to damages or defects under the applicable customs procedure and re-imported in the original state after repairs on the repair and return basis without any major alteration

Conclusion

In the 2024 UTL, very few changes have been made other than the increase in SGT rates applied to liquor and wine. The rates of corporate income tax, personal income tax (including income tax on salaries of non-resident Myanmar citizens), capital gains tax, and jewelry tax remain the same as those in the 2023 UTL and Amendment to the 2023 UTL dated 12 September 2023. It should be noted that tax rates and exemptions in the 2024 UTL are only applicable for the period from 1 April 2024 to 31 March 2025.

If you would like to obtain more information or require assistance with this matter, please contact the undersigned or your usual VDB Loi adviser.

Honey Htun Wai
[email protected]