CLIENT ALERT: Myanmar: Are you prepared for this financial year end?
February 21, 2019The 2018–19 financial year end is around the corner and all taxpayers have less than two months left for tax payments, tax returns, and possibly some tax planning.
All taxpayers should now be in the process of planning their annual tax filings. Please be reminded that annual Corporate Income Tax (“CIT”), Commercial Tax (“CT”), and Specific Goods Tax (“SGT”) must be paid to the Internal Revenue Department (“IRD”) by 10 April 2019 for the 2018–19 financial year. As per the recent reminder letter from the IRD in relation to tax payment procedures, taxpayers who are using a purchase order or check addressed to the respective bank account of the IRD must make use of these tax payment modes at least two working days prior to the payment deadline (i.e., 8 April 2019) in order to account for possible bank processing time for check clearances between different local banks and government banks.
Please note that Personal Income Tax (“PIT’’) and Withholding Tax (“WHT”) must be paid to the IRD by 31 March 2019 in order for the relevant expenses to be claimed as deductible expenses in the CIT return for respective financial year. Capital Gains Tax (“CGT”) must be paid to the IRD within 30 days from the date of sales, exchange, or transfer of any capital assets.
The annual CIT, CT, PIT, and CGT return must be filed within three months of the financial year end — tentatively by 1 July 2019 (as 30 June 2019 falls on a weekend, the IRD might allow for one more day to file the annual tax returns of FY2018-19).
Thus, all taxpayers should start calculating taxes at least one month prior to the financial year end to ensure that tax payments are submitted and processed on time, in order to avoid any late tax payment or tax return filing penalties. It should be noted that there is a 10% late-payment penalty to be applied on the total underpaid tax amount of the year should payments be made after the above-mentioned deadlines; there is also a late-filing penalty of 10% on the annual payable tax amount, if annual tax returns are not submitted by the aforementioned annual tax return filing deadline.
Please note that we will be organizing a tax workshop in March 2019 focusing on the above-mentioned subject matter, so please keep an eye out for the invitation.
We are ready to assist with your year-end tax planning and preparations as well as any related discussions. Should you have any questions, please do let us know.