If the sale or exchange value of one or more assets per year does not exceed 100 lakh kyats, income tax is not required even if the capital is profitable

According to the Internal Revenue Department, sale or exchange value of one or more assets does not exceed 100 lakh kyats, there is no need to pay income tax even if the capital is profitable. If one want to clarify tax matters concerning buying and selling of cars, it is needed to carried out setting vehicle standards, submission of declaration and tax payment procedures. In case of setting vehicle standards, registration of domestic vehicles and change of owner’s name in connection with tax assessment, it is needed to contact the relevant township Revenue Department offices in the township where the taxpayer resides. In the case of importing vehicles from abroad, it is also needed to contact the Office of the Income Tax Collection for the import of motor vehicles in Yangon, Mandalay and Nay Pyi Taw.

If the taxpayers want to carry out buying/selling of vehicles; and changing the names of owners, they can submit the income declaration to the relevant township tax office where they live and submit the source of income for the purchase. If the source of income is not presented, the income tax will be paid in accordance with the tax rates in Section 25 of the Union Tax Law of 2020. In the case of selling vehicles, they have to submit the income declaration to the relevant township tax office where they live within 30 days from the date of transfer of the property and estimate the tax. According to the 2020 Union Tax Law, income tax is levied at a rate of 10% on the value of the original purchase price and the additional costs incurred in the transfer of the property. 

In selling of one or more assets per year, Income tax is not needed to be paid even if the total value of the property to be exchanged or transferred is not more than 100 lakh kyats. According to the original estimate, the Union tax collection in the 2020-2021 fiscal year is expected to reach over 8615.777 billion kyats. If we look at the annual tax collection of the Union, in the 2011-2012 financial year it was 1691429.766 million kyats, in the 2012-2013 financial year it was 3373296.761 million kyats, in the 2013-2014 financial year it was 4458776.335 million kyats. 6517979.368 million in the 2014-2015 financial year; 6314733.657 million in the 2015-2016 financial year; 7122430.228 million in the 2016-2017 financial year; 7423724.984 million in the 2017-2018 financial year; In the six months from April to September 2018, 3424206.832 million kyats; In the 2018-2019 financial year, it received 8360303.568 million kyats.

Source: Daily Eleven

Tags: No tags