Government of the Republic of the Union of Myanmar

Ministry of Finance and Revenue

Minister’s Office
Notification No.102/2012
th
The 8 Waning of Tabaung 1373 M.E, Naypyitaw
(15th March 2012)

The Ministry of Finance and Revenue with the approval of the Union Government,
notifies the following Rules under the Income-Tax Law Section 51, subsection (a).
CHAPTER I
Title, Application and Definitions
1. (a) These Rules shall be called the Income-tax Rules.
(b) These Rules shall commence from the 2012-2013 financial year.
2. The expressions in these Rules shall have the same meaning in the
Income-Tax Law and ‘Law’ has the meaning as defined in the Income-Tax
Law.
 CHAPTER II
Relief for Spouse and Children
3. (a) The expression spouse in sub-clause (2)(bb) of sub-section (c) of section 6 of the Law
means the spouse living with the person or maintained by the person at any time within the
income year. Provided that the spouse shall not, on his or her own, earn an assessable
income within that income year.
(b) The expression children in sub-clause 2(bb)of sub-section (c) of section
6 of the Law means a person’s own children, step children, and children
adopted in accordance with the Law who are maintained by the person at
any time within the year and who fulfil all the undermentioned conditions:-
Explanation - The expression "receiving educational instruction” means receiving fulltime
instruction at any school, university, college, or any educational establishment, or serving
an apprenticeship under articles to qualify in a profession.
(c) In allowing the reliefs under section 6 of the Law, if there is more than
one source of income, the relief shall be set-off in stages starting with the
income at the lowest income-tax rate and then on to income at higher income-tax rates.
 CHAPTER III
Exemption and Relief for Savings
4. (a) For the purpose of clause (iii) of sub-section (a) of section 5 of the Law
A receipt in respect of savings means any interest from savings from state banks and interest from
savings certificates under the savings bank law.
(b)Contributions towards savings fund entitled to relief under sub-clause (2) (dd) of sub-section
(c) of section 6 of the Law shall mean contributions toward a social security fund.
 CHAPTER IV
Computation and Assessment of Capital Gains
5. (a) If any person sells, exchanges or transfers by any other means one or more capital assets and
during the year of the transaction the total value thereof is of an assessable amount and if
profits have arisen there from, he shall file a return of income to the Township Revenue
Officer within one month from the date of the sale, exchange or transfers of the capital
assets concerned.
Explanation – The date of the sale, exchange or transfer of capital assets means the date
of the execution of the deed of the sale, exchange or transfer and the date of the delivery
of the assets, whichever is the earlier.
(b)If the Township Revenue Officer is of the opinion that any person is liable to pay tax in
respect of capital gains, he may send a notice to that person to file a return of income for the
gains.
(c) Assessment of the tax shall be made in the respective income year on the person who
received capital gains. In making the assessment, the tax shall be computed and demanded
at the rates of tax existing in that income year. In determining the capital gains, the following
shall be deducted from the full value of the sale, exchange or transfer of the capital asset concerned:
-
(i) the net value, remaining after deducting the total depreciation allowed under the Law from
the sum total of the original cost to the assessee and any capital expenditure actually
incurred by the person for making any addition thereto;
(ii) expenditure incurred in the procurement of the capital asset and in the sale, exchange
or transfer of the same.
(d) If the original cost actually incurred in the procurement of the asset by
the assessee cannot be ascertained or if the asset is acquired by in
heritance or by way of a gift, the market value prevailing at the time of
acquiring the asset shall be deemed to be the original cost to the
assessee.
(e) Where any capital asset became the property of the assessee before 1st April 1997, the
original cost under clause (1) of sub-rule (c) or original cost under sub-rule (d) shall be
deemed to be the market value of the asset prevailing on that date. Provided that only
expenditure incurred or depreciation allowed after that date shall be included in the
computation under clause (1) of sub-rule(c).
(f) Where the Township Revenue officer is of the opinion that the value stated by the assessee
in respect of the sale, exchange or transfer of the capital asset is, without sufficient reason,
less than the market value prevailing at the time of the transaction, he shall substitute the
value for the prevailing market value.
(g)Where the assessment is not completed within the income year under this Rule, the
assessment may be made on the relevant assessee in accordance with the provisions of the
Law, as if it were not applicable under sub-rule (c)
(h) In the case of assessment or re-assessment of capital gains under
sub-section (b) of section 21 of the Income-tax Law, and where the deed of sale, exchange
or transfer of the capital asset concerned has been registered under the Registration Act, the
period of limitation shall be reckoned from the date of the registration of the deed.
 CHAPTER V
Procedure for Assessment of undisclosed sources of income
6. In respect of any immovable property or movable property including
money for which the person concerned is unable to accurately account as to
how he has acquired the property, for the purposes of determination of
income and assessment thereon under section 14, the year of disclosure of
the property or the money shall be deemed to be the income year in respect
of the value of that property or the money. The property or the money and
all the expenditure incurred in acquiring the property shall be deemed to be
the income of that year and assessed accordingly.

Explanation- the year of disclosure means:-(a) in the case of property, if acquired by

purchase, the year of purchase, or if constructed and completed in a year’s time that
particular year.
Provided that, if it is in the course of construction the relevant years of construction;
(b) in the case of money, the year the money is found to exist or the year by evidence the
money was received, whichever is the earlier.
 CHAPTER VI
Income Year to be Assessment Year
7. If the order under section 29 of the Law to the effect that the income year shall be the
assessment year in respect of any class of assessees is issued, the assessment may, in the
absence of any specific provision in the order be made as follows:-
(a) the Township Revenue Officer may send a notice to the person belonging to
those class of assessees to estimate his total income received from all sources in that
assessment year and to file the return of income. The notice shall be deemed to be the notice
issued under subsection (b) of section 17 of this Law; (b) a person who has already filed a
return of income or who has been served with the notice under sub-rule (a) may be notified
to produce or cause to produce supporting evidence in respect of the total income that may
accrue or arise in that year. The notice shall be deemed to be the notice issued under sub-
section (b) of section 19 of the Law;

(c) after having examined and heard the supporting evidence by the assessee
or the other evidence as required by the Township Revenue Officer, on
the day specified in the notice issued under sub-rule (b) or, on the basis
of available evidence, assess income-tax on the assessee’s total income.
In making the an assessment computation and demand shall be made in
accordance with the rates of that assessment year.
Provided that, where there is failure to comply with the conditions contained in the notice
under sub-rule (a) or (b), the Township Revenue Officer, after obtaining all available
evidence, shall assess on the basis of the evidence;
(d) no further assessment shall be made on account of the change of the
assessment year in respect of the total income of the assessee on whom
assessment has been made under this Rule;
(e) if the person on whom assessment has been made under this rule
produces within the year that follows the assessment year, reliable
evidence that the income determined for the reliable evidence that the
income determined for the relevant assessment year is incorrect or where
the Township Revenue Officer finds the reliable evidence, the Township
Revenue Officer may amend the assessment. If the amended assessment
is made, the period of limitation under this Law shall be computed based
only on that amended assessment.
Explanation - If necessary, the Ministry of Finance and Revenue of the Union
Government may, by notification under section 7 of the Law, confer on a
person the powers of the Township Revenue Officer under this rule.
 CHAPTER VII
Assessment in the Income year
8. If the order under section 29 of the Law to the effect that an assessment may be made in
respect of any income in the income year is issued, in the absence of specific provisions in
the order, the Township Revenue Officer may make the assessment as follows:-(a) the
Township revenue officer may send a notice to the person receiving income to estimate that
income received in the relevant income year and
to file the return of income. The notice shall be deemed to be the notice issued under sub-
section (b) of section 17 of the Law;
(b) a person who has already filed the return of income or who has been
notified under sub-rule (a), may be served with a notice to produce or
cause to produce supporting evidence in respect of income that may
accrue or arise in that year. The notice shall be deemed to be a notice
served under sub-section (b) of section 19 of the Law;
(c) after examining and hearing the supporting evidence produced by the
assessee, or other evidence as required by the Township Revenue
Officer, on the day specified in the notice issued under sub-rule (b) or as
soon as possible, the Township Revenue Officer shall, on the basis of
available evidence, assess income-tax on the assessee’s income. In
making the assessment, the tax shall be computed and demanded in
accordance with rates relevant for the assessment year. Provided that on
failure to comply with the terms of the notice issued under sub-rule (a)
or (b), the Township Revenue Officer using available evidence, shall
make an assessment on the basis of that evidence;
(d) the specific assessment made under this rule in respect of any class of
income shall be deemed to be the advance assessment for the income.
The total income of the assessee including the above-mentioned income,
shall be subsequently assessed in accordance with the Law. In making
the subsequent assessment, the tax paid in the advance assessment shall
be credited:
(e) the decisions made in the advance assessment under this rule, may be altered as necessary in
the subsequent assessment made under sub-rule (d);
(f) where the assessment is not completed in the income year under this rule the assessment may
be made on the relevant assessee in accordance with the provisions of the Law as if it were
not applicable under section 29 of the Law.
Explanation - If necessary, the Ministry of Finance and Revenue of the Union Government
may, by notification under section 7 of the Law, confer on a person the
powers of the Township Revenue Officer under this rule.
 CHAPTER VIII
Assessment of Non-resident Citizens
9. (a) Assessment of income-tax on a non-resident citizen under section 30 of the Law shall be
made in accordance with the provisions prescribed under this rule.
(b) (i) The total income of a non-resident citizen for any income
year under sub-section (n) of section 3 of the Law includes total
income within Myanmar and total foreign income.
(ii) The total income within Myanmar of a non-resident citizen
means all income received by him in Myanmar within that year.
(iii) The total foreign income of a non-resident citizen means all
income received by him outside Myanmar within that year. Provided that the total
income of a non-resident citizen shall not include income exempt under any law.
(c) In assessing the income-tax of a non-resident citizen, his total income within Myanmar
and his total foreign income shall be computed and determined separately. Based on
these determinations, the tax on the total income within Myanmar and the tax on the total
foreign income shall be computed separately. The non-resident citizen is liable to pay
income-tax equal to the total of both the taxes.
(d) The assessment and collection of income-tax on the total income, within Myanmar of a
non-resident citizen shall be in accordance with the relevant provisions of the Law and
the income-tax payable shall be computed in accordance with the rates specified by
notification of the Ministry of Finance and Revenue, with the approval of the Union
Government.
(e) (i) In computing the total foreign income of a non-resident citizen, the
computation shall be made under the heads provided in section 8 of the Law and
shall be in accordance with the provisions of the Law. Provided that in computing the
total foreign income of a non-resident citizen, reliefs allowed under section 6 of the
Law shall not apply.

(ii) The rate of income-tax applicable to the total foreign income of a non-resident
citizen may be prescribed by notification of the Ministry of Finance and Revenue of
the Union Government, with the approval of the Union Government.
 (f) If a non-resident citizen receives any income outside Myanmar within any year, the total
foreign income in that year shall be estimated and the income-tax liable thereon shall be paid
in that year according to the procedure laid down by the person delegated by the Ministry of
Finance and Revenue of the Union Government for this purpose. In making the payment, the
assessee may, at his own convenience, do so by instalments from time to time
without extending the period beyond the respective income year.
(g)The sum paid according to the provisions of sub-rule (f) or the sum recovered as a
result of the combined use of the provisions laid down in sub-rule (f) and (n) shall be deemed,
under the provision of sub-rule (i), to be income-tax paid in respect of an income-tax
assessment of that respective year. The income-tax so paid shall be credited in the
respective assessment.
(h) (i) If a non-resident citizen earns income outside Myanmar within the income
year, he shall file a return of income on his total foreign income to the Township Revenue
Officer within three months after the end of that year according to the procedure laid
down by the person delegated by the Ministry of Finance and Revenue of the Union
Government for this purpose.
(ii) If it is considered that a non-resident citizen has income outside Myanmar, the
Township Revenue Officer may send a notice requiring him to file a return of income in
respect of his total foreign income in the prescribed manner. If an assessment or re-assessment
is to be made in respect of foreign income earned abroad which is included in the class of
income for assessment or re-assessment under section 21 of the Law; it shall be made only in
accordance with section 21 of the Law. (i) The Township Revenue Officer, or the person
delegated by the Ministry of Finance and Revenue of the Union Government, on receipt of
the return of total foreign income under sub-rule (h) shall, as soon as possible, assess the total
foreign income of the relevant non-resident citizen. Before assessing the non-resident citizen’s
total foreign income, the Township Revenue Officer may call for from anyone with
documentary supporting evidence that is deemed necessary for the Township Revenue Officer
to make a decision. If a non-resident citizen fails to file a return of income as required under
sub-rule (h), the Township Revenue Officer shall make an assessment on the income based on
any available evidence.
 (j) When income-tax is payable under sub-rule (i), the Township Revenue Officer shall send a
notice of demand, in accordance with section 53 of the Law, upon the person liable to pay
the income tax. That notice of demand shall be deemed to be a notice of demand under
section 53.
(k) The assessee who is liable to pay income-tax on the total foreign income shall pay only in
the foreign currency included in that total foreign income.
(l) If a refund is found to be due to a person to whom income-tax is assessed under sub-rule (i),
that refund shall be set-off against the income-tax payable under sub-rule (f). Provided that
if, within one year after that assessment has been made under sub-rule (f) on the ground that
there has been no foreign income, the refund due to him shall be made in that foreign
currency.
(m) In order to collect income-tax on the total foreign income payable by a citizen under this
rule, before his departure from Myanmar , the person to whom the powers are delegated by
the Ministry of Finance and Revenue of the Union Government; for this purpose shall have
the right to make appropriate arrangements.
(n) (1) If any person to whom these rules apply, fails to pay the income-tax in accordance with
the rules, the person shall be deemed to be a defaulter under section 39 of the Law. (2) In
making the recovery of tax from a defaulter under sub-clause (1), of this rule, the duties are
delegated by the Ministry of Finance and Revenue of the Union Government for this
purpose shall have the right to decide the currency with which to make the recovery.

(o) In computing the total foreign income and the tax thereon, it shall be computed in kyats
equivalent to the foreign currency concerned. In calculating the kyat equivalent of that
foreign currency, the exchange rates of the foreign currency is determined as prescribed
by the Ministry of Finance and Revenue of the Union Government.
(p) The person to whom the duties are assigned by the Government may, by notification,
prescribe detailed requirements for carrying out the matters provided in these rules.
 CHAPTER IX
Assessment of Non-resident Foreigners
10 If the Township Revenue Officer considers that a non-resident foreigner’s income under
section 26 of the Law cannot be definitely known, the Township Revenue Officer may
compute the income for income-tax assessment by one of the methods mentioned below:
(a) by computing at a rate considered reasonable by the Township Revenue Officer on the
gross receipt of that person under section 26 of the Law;
(b)by computing the income within Myanmar by using the following formula:-

Rec e i p t s w it hin
Income within Myanmar M y a n m a r Total income within
=
and without Myanmar R e c e ipt s withi n a nd withou xt without Myanmar
Myanmar

Remarks - The total income within and without Myanmar in this sub-rule (b) means the total
income computed and determined in accordance with the provisions of the Law.
(c) if it is impracticable to compute the income under sub-rule (a) or (b), then computation
may be by any method deemed reasonable to the person to whom duties are assigned by
the Ministry of Finance and Revenue of Union Government for this purpose.