Latest Tax Compliance Procedures for Non-Profit Organizations in Myanmar

Written by: Ayman Falak Medina, ASEAN Briefing, Dezan Shira & Associates

Posted: 21st August 2020 10:54

On July 27, 2020, Myanmar’s Ministry of Planning, Finance and Industry issued Notification 79 of 2020 (Not 79/2020) regarding the latest tax compliance procedures for non-profit organizations in the country.

Not 79/2020 will come into effect from October 1, 2020, and the regulation defines a non-profit organization as entities that provide social welfare, such as educational programs, healthcare programs, and supporting those impacted by natural disasters.

Investors looking to establish a non-profit organization in the country should seek the help of qualified advisors in ensuring they stay compliant.

Must apply for tax registration

Not 79/2020 stipulates that non-profit organizations must register for a tax number from the Director General of the Internal Revenue Department (IRD) to conduct the tax filings.

Income tax exemptions

Once the tax identification number has been approved, the organization must then apply for income tax exemptions in addition to receiving the recognition that all the donations it receives are considered tax-deductible expenses for its donors.   

The organization will need to provide the following information:

The Director General of the IRD will then assess the application under the following criteria:

If the organization fulfils all the aforementioned requirements, the Director General will issue the tax exemption certificate. Non-profit entities are reminded that in cases of non-compliance, the Director General has the right to revoke this certificate.

Tax obligation requirements

Non-profit organizations, whether or not they are recognized for tax exemption, must comply with the tax requirements prescribed under the country’s tax laws.

This includes:

This article was first published by ASEAN Briefing, which is produced by Dezan Shira & Associates.

The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnam, Singapore, India, and Russia. Readers may write info@dezshira.com for more support.

 

Related articles



Comments


close

Subscribe to our newsletter

Sign up here and get the latest news and updates delivered directly to your inbox

You can unsubscribe at any time