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Tax Amnesty on Undisclosed Income at Reduced Tax Rates

Tax Amnesty on Undisclosed Income at Reduced Tax Rates

June 22, 2021

The State Administration Council enacted Law No. 20/2021 on Amending the Union Tax Law 2020 (“Amended UTL 2020”) on 17 June 2021 to reduce the tax amnesty rates on undisclosed income for the last quarter of financial year (“FY”) 2020-2021. The law takes effect on 1 July 2021 and will be valid until the end of September 2021.    

Tax amnesty for the last quarter of FY2020-2021 at reduced tax rates  

The tax amnesty rates on undisclosed income in the final version of the Union Tax Law 2020, which was approved on 28 August 2020, ranged from 6% to 30%. In order to shore up the economy and investments affected by the COVID-19 pandemic, the Amended UTL 2020 was issued to reduce the tax amnesty rates on undisclosed income back to the progressive tax rates of FY2019-2020 of 3% to 30% for the last quarter of FY2020-2021.

A comparison of the tax rates for undisclosed income between FY2019-2020 and FY2020-2021 is shown in the table below.

Income (MMK)FY2019-2020FY2020-2021FY2020-2021
(from July 2021 to September 2021 only)
1 – 100,000,0003%6%3%
100,000,001 – 300,000,0005%10%5%
300,000,001 – 1,000,000,00010%NA10%
1,000,000,001 – 3,000,000,00015%NA15%
300,000,001 – 3,000,000,000NA20%NA
3,000,000,001 and above30%30%30%

Who is liable to pay income tax under the tax amnesty rates?

When an individual or a company buys a capital asset such as a house or car, or makes an investment, the source of income for the funds used to make the purchase or investment must be provided. The same is required when an individual transfers the ownership title of a capital asset their name (e.g., for a car). If the source of income cannot be provided for any portion of the funds use to buy the capital asset or make the investment, the portion that is undisclosed is taxed at the tax amnesty rates in effect (which during the special relief period of July to September 2021 range from 3% to 30%).

When will the new rates apply?

Note that even if a taxpayer has undisclosed income for a previous income year and files and pays tax on it in a later year, the tax will be assessed using the rates currently prevailing at the time of filing (rather than the previous year’s rates). The new rates will apply from 1 July 2021 and it will be valid until 30 September 2021.   


Honey is a Partner and is advising clients in a wide range of industries on tax compliance, accounting and payroll, financial and tax due diligence and tax structuring. She has recently conducted financial due diligence on state-owned banks in Myanmar for its restructuring. Honey qualified as a CPA with PwC in Sweden and holds a master’s degrees in accounting, finance and business development from Umea University in Sweden and a bachelor degree in Business Management from National Management College in Myanmar.

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