Free law image

Fines and Penalties for failure to comply with the provisions of applicable tax laws


It is important for financially operating companies and organizations to pay relevant taxes on time. Failure to pay tax for any reason The penalties and fines for tax evasion are severe depending on the type. For this reason, we would like to inform all CBS clients, old friends and new friends about the fines and penalties that will be incurred in case of non-payment of taxes.

(1) Provisions and fines for failure to register or notify change of taxpayer information

Anyone who commits the following offenses will be fined equal to 10% of tax payable

(i)Failure to register in accordance with any tax law

(ii) Failure to notify the relevant tax offices of the change of taxpayer’s information

(iii)Failure to apply for the cancellation of taxpayer registration under any tax law

(2) Fines for misrepresentation of invoices,receipts,debtor’s note and creditor’s note

Anyone who commits the following offenses will be fined not exceeding two thousnds five hundreds

(i)Using uncorrect or irrelevant taxpayer identification number

(ii)Issuing an incorrect invoice or sale receipt

(iii)Issuing an incorrect creditor’s note or debtor’s note

(iv)Paying of invoices,receipts,debtor’s note and creditor’s note is not accordance with any tax law or failure of paying them

(3) Provisions and fines for Declaration

If you fail to submit quarterly declaration form and annual tax declaration form or other declaration forms at specified date,you must pay higher of the following two fines.

(i) In addition to 5 percent of the amount of tax payable, For each month of failure to submit the declaration form from the date specified for submission until the time of assessment by the Director General or 1% of the amount of tax payable for partof the month

(ii)100,000 Kyat

(4) Fines for under payment of tax due to negligence or dishonest intention

Whether due to negligence or if you knowingly or neglected to pay less tax,youmust pay one of the penalties below.

(i)25% of the underpaid tax amount

(ii)If the amount of underpaid tax exceeds 100,000,000 kyat or if it exceeds 50% of the tax to be paid,must pay 75% of the amount of underpaid tax.

(5) Submitted wrong figures or inproper way    

In addition 150,000 kyats,the higher of penalties as per the following.

(i)difference between actual tax amount and less tax amount

(ii)difference between actual Refund amount and estimated over refund amount

(6) Failure to maintain the proper Financial records

(i)if actual tax amount is less than 5 lakhs kyat,subsequent absent day 5000 kyats per day

(ii)if actual tax amount is less than 50 lakhs kyat,subsequent absent day 50,000 kyats per day

(iii)If actual tax payment is more than 50 lakh kyats, subsequent absent day 100,000 kyats per day

(7) for Failure to comply with third party notice

(i)25% between actual tax and tax already paid within the due date mentioned in the notice

(8) Failure to provide the proper place for tax officers and submit the information of the company within time frame

(i)not higher than 5 lakh kyats

(9) Penalties for failure to submit information

(i)not higher than 5 lakh kyats

(10) Provisions and penalties for failure to pay tax in due tax

(i)Failure to pay tax due within 14 days from the re-assessment or assessment or on the date specified in the notice,10% of unpaid tax as late fee

(ii)Failure to pay installments within due date,10% of unpaid tax as late fee

(iii)Failure to pay withholding tax ,10% of defaulted amount as late fee

(11) Penalties for tax evasion

(i)not more than 7years imprisonment or 750,000 kyats and amount equal to 100% of  tax evaded for the relevant period

(ii)may be prosecuted under the Anti-Money Laundering Law enacted by Union Hluttaw Law No.11

(12) Penalties for failure to affix tax stamp

(a)Commercial tax

If failure,100% of the additional tax to be paid on receipt or evidence of receipt and the following amount must pay according to the number of times of failure.

(i)1million kyat for first time

(ii)2 million kyat for second time

(iii)3 million kyat for third time

(iv)6 milion kyat for more than third time

(b)Specific good tax

(i)selling specific goods without tax stamp,50% of specific goods amount as a fine

(ii)if own goods that have not been taxed,not only 100% of the amount of goods as a fine

(13)Penalties for failure to comply with Specific Good Tax Law

(i)If fail to submit requested information within specified date in order to determine market price,50% of specific goods amount as a fine

(ii) if own goods that have not been taxed,not only 100% of the amount of goods as a fine but also the goods will be confiscated as public funds.

(14)Provisions and Penalties for failure to pay stamp duty

(i)If do not pay enough stamp duty during the stamp duty period, must pay the amount of tax required to be met and pay a fine not exceeding 3 times the amount of stamp duty required to be met.

(ii) If the person who is allowed to sell stamps does not follow the established rulesor sell other stamps worth 10 kyats or more without a license to sell stamps; offered for sale; If the stamps are in illegal possession, imprisonment up to 6 months or fine up to 1 lakh kyat or both.

❖ If you need advice or help, you can contact CBS. If your companies and organizations need help (or advice) regarding tax matters, you can contact CBS through the contact information below and have a free consultation.

Telephone (Myanmar)

  • +95 9 777177740
  • +95 9 263276320
  • +96 9 255557648
  • +95 9 798941615