The Union Tax Law for fiscal 2020-21 will include provisions supportive of small and medium-size enterprises (SMEs) in Myanmar, including incentives aimed at reducing tax burdens as well as simplifying compliance procedures. Some of the provisions under the new tax bill include allowing SMEs to deduct certain expense.
Term and conditions for production sharing contracts in the oil and gas will also be amended to be equitable and attractive for investors. The benefits reaped from the sector will be balanced between investors and the State, while preventive measures against tax losses will be included.The tax carryover period will be extended to five years from the current three. This is a provision that allows taxpayers to carry forward a tax loss to offset against future profits to reduce tax payments for that year.
The various tax rates, reliefs and exemptions will be listed clearly in the law to avoid uncertainties and situations where taxpayers seek loopholes to exploit or avoid paying the full amount of taxes. The new tax law for the coming fiscal year took three years to draft with the assistance of the International Monetary Fund.
Source: Myanmar Times