A handout regarding the documents to be submitted for the beneficiary under the Avoidance of Double Taxation Agreement (DTA) and this handout also includes the matters to be followed by the beneficiary.Β “
The Purpose
β’ This brochure is written with the aim of providing a clear understanding of the issues that must be followed when applying for benefits under the DTA agreement through the appointment of a company/individual or representative of a country where the Avoidance of Double Taxation Agreement (DTA) is in effect.
Countries that have signed a DTA
β’ The eight (8) countries that have signed DTA contracts with Myanmar are as follows:
β’ Britain
β’ Korea
β’ India
β’ Malaysia
β’ Singapore
β’ Laos
β’ Thailand
Determination of taxing rights (Taxing Rights) under the income tax law on transnational businesses
β’ Myanmar According to the Income Tax Law, both the Residence Rule and the Source Rule are used to determine the taxing rights of transnational businesses.
Taxation of income
β’ If you are a foreign national living in Myanmar Taxes must be paid in accordance with existing laws.
β’ If you are a foreign national according to the source rule, you will have to pay tax on the income generated by the foreign national from any source in Myanmar (Myanmar’s source income).
β’ In this case, as withholding tax (WHT) which is deducted from the final principal, notice No. 47/2018 will be charged at the rates.
β’ If income is generated from any source of income in Myanmar, the payer must deduct and submit income tax (Withholding Tax-WHT) every time the payment is made.
β’ If you are a company / group or an individual belonging to a country where the DTA agreement is in effect, you can apply for any benefits under the DTA agreement. When applying for such a request, either directly to the relevant tax collection office, or through the appointed representative, the following information must be submitted along with the evidence.
Information to be submitted by the taxpayer himself when applying for the benefit under DTA
β If it is an individual
β’ Name of the person who wants to apply for benefits under DTA
β’ Permanent Address, phone number, Business Website address and e-mail address
β’ Complete business location/region/address in Myanmar.
β’ Place of residence in Myanmar.
β’ Number of days live in Myanmar during the relevant year (—day–month–year to–day–month–year).
β’ According to DTA, the name of the country where the beneficiary applicant is a resident;The chapter (Article) and content of the DTA that you want to refer.
β’ According to the income tax law, the type of payment that will be taxed, the amount of payment, the tax rate that will be charged and the total amount of tax.
β’ Tax rate and total amount of tax claimed as per DTA
β’ Business agreement (if it is done under contract);
β’ Date of commencement of business.
β’ Date of completion of business.
β’ A detailed description of the business performed outside Myanmar or within Myanmar;
β’ Main business of the applicant.
β’ If you are self-employed, name and type of business, full business address;
β’ If an employee, name of employer, business name and type; full business address;
β’ The type and amount of income received within Myanmar or outside Myanmar;
β’ payment method;
β’ To state how long the tax records have been cleared in the relevant country of the beneficiary applicant;
β’ Proof of confirmation that the relevant country is a taxpayer (Certificate of Residence-COR);
β’ If you have already paid income tax withholding tax, list of income tax withholding tax payment (Patakha (W)-03-08).
β If the company:
β’ The name of the company that wants to apply for benefits DTA;
β’ Permanent Address, phone number, Business website address and e-mail address;
β’ Place of business / region / full address in Myanmar.
β’ Company registration number and place of incorporation;
β’ Members of the Board of Directors and equity ownership;
β’ Affiliate company (if any) group name;
β’ Affiliated companies (Associated Enterprises)
β’ According to DTA, the name of the country where the beneficiary applicant is a resident;The chapter (Article) and content of the DTA that you want to refer to;
β’ According to the income tax law, the type of payment to be taxed, the amount of payment, the rate of tax to be paid and the total amount of tax.
β’ Tax rate and total amount of tax requested under DTA;
β’ Business agreement (If it is performed according to the contract);
β’ Date of commencement of business;
β’ Date of completion of work;
β’ The main business of the company you want to apply for;
β’ Main business in Myanmar
β’ A detailed description of the business performed outside of Myanmar or within Myanmar;
β’ The type and amount of income received from within or outside of Myanmar;
β’ payment method;
β’ To indicate the period for which the tax return has been cleared in the relevant country of the beneficiary applicant;
β’ Proof of confirmation that the relevant country is a taxpayer (Certificate of Residence-COR);
β’ If you have already paid income tax withholding tax, list of income tax withholding tax payment (Patakha (W)-03-08).
β Individuals and groups other than companies:
β’ The name of the person who wants to apply for benefits under the DTA or the name of the person who has the most shares;
β’ Permanent address, phone number, business website address and email address.
β’ Place/region/full address established to conduct business in Myanmar;
β’ The place / region / address where all business administration and decision-making matters are carried out;
β’ A list of members participating in the group and group participation;
β’ According to the DTA, the name of the country where the beneficiary applicant is a resident, the article and content of the DTA to be referred to.
β’ According to the income tax law, the type of payment to be taxed, the amount of payment, the tax rate to be paid and the total amount of tax.
β’ Tax rate and total amount of tax requested under DTA;
β’ The main business of the person who wants to apply
β’ Main business in Myanmar
β’ A detailed description of the work carried out in Myanmar;
β’ The type and amount of income received within Myanmar or outside Myanmar;
β’ payment method;
β’ To indicate the period for which the tax return has been cleared in the relevant country of the beneficiary applicant;
β’ Proof of confirmation that he is a taxpayer of the relevant country (Certificate of Residence-COR);
β’ If you have already paid the income tax withholding, the list of income tax withholding (Patakha (W)-03-08).
Information to be submitted if applying for benefits under DTA by representative
β Applicants for benefits under DTA, if applying through a representative rather than applying directly, the individual or company or group of individuals who will apply on behalf of the taxpayer must submit the following information in addition to the information to be submitted by the taxpayer himself:
β’ The name of the individual or company or group of individuals who will apply on behalf of the beneficiary;
β’ Permanent address, phone number, business website address and e-mail address;
β’ Place of business / region / full address in Myanmar;
β’ Letter of delegation of power of attorney (Letter of Authorization) (to affix tax stamp).
The relevant tax office will verify the information submitted by the taxpayer or the taxpayer’s representative and will reply whether or not the benefits under the DTA contract are available.