Can I claim medical expenses under Myanmar PIT?
Personal medical expenses are not a separate deduction under Myanmar's Income Tax Law. The standard reliefs are the 20% basic personal relief and the dependant allowances (spouse, children, parents). Employer-paid receipted medical care for the employee is generally not assessable salary if treated as a workplace benefit; cash medical allowances and round-sum medical payments are taxable salary at 0–25%.
Step-by-step calculation
This walk-through covers what reliefs and exclusions apply to medical expenses under Myanmar PIT. Default: Myanmar tax resident, single, no dependant allowances claimed, no donations. Brackets are from the Union Tax Law 2025-2026 (Section 5). Tax year: 1 April – 31 March. The Myanmar Income Tax Law does not provide a separate medical-expense deduction. The treatment depends on who pays, how it is structured, and whether there are receipts.
Step 1 — Apply the 20% basic personal relief on assessable salary
Strip out genuine receipted medical care provided by the employer (typically not assessable). Cash medical allowances are added to gross. Apply the 20% basic personal relief on the assessable total (capped MMK 10,000,000/year).
| Annual base salary | (figure) |
| Plus: cash medical allowance | (figure) |
| Less: receipted medical care provided by employer | excluded |
| = Annual gross assessable salary | (sum) |
| Less: 20% basic personal relief | − up to MMK 10,000,000 |
| Less: medical expense paid personally (separate) | 0 — not allowed |
| Less: spouse / child / parent allowances | 0 in default case |
| Annual taxable income | = residual |
Step 2 — Apply the Union Tax Law 2025-2026 brackets
| Annual taxable income | Marginal rate |
|---|---|
| 1L – 20L (MMK 0 – 2,000,000) | 0% |
| 20L – 100L (MMK 2,000,000 – 10,000,000) | 5% |
| 100L – 300L (MMK 10,000,000 – 30,000,000) | 10% |
| 300L – 500L (MMK 30,000,000 – 50,000,000) | 15% |
| 500L – 700L (MMK 50,000,000 – 70,000,000) | 20% |
| 500L – 700L (MMK 50,000,000 – 70,000,000) | 20% |
| 700L & above (MMK 70,000,000+) | 25% |
How different medical structures are treated:
| Structure | Tax treatment |
|---|---|
| Employer-paid hospital invoice (employee receives no cash) | Generally not assessable salary if receipted and clearly for the employee/dependant |
| Group medical insurance premium paid by employer | Generally not assessable salary; document the policy |
| Reimbursement of employee's medical receipt | Generally not assessable salary; receipt evidence required |
| Cash medical allowance (no receipts) | Fully assessable salary |
| Employee's own personal medical expense | No PIT deduction; relief is the 20% basic relief |
Step 3 — Convert to monthly withholding
- Cash medical allowance: add to gross, withhold PAYE.
- Receipted reimbursement: outside payroll, no PAYE.
- Group insurance: outside payroll, no PAYE on premium.
- Personal expense: no entry in payroll; no deduction on annual return.
What about SSB and the true net salary?
SSB medical benefits cover registered employees under the Social Security Law 2012 — the contributory scheme funds healthcare and cash benefits during sickness. Employee contribution is 2% on the MMK 300,000 wage base (max MMK 6,000/month); employer contribution is 3% (max MMK 9,000/month). SSB benefits are not the same as a PIT deduction — they are a separate insurance scheme.
Employer takeaway
Medical expenses paid personally are not deductible under Myanmar PIT. Structure employer medical care as receipted reimbursement, paid invoices, or group insurance — these are generally not assessable salary. Cash medical allowances are taxable salary. Withhold PAYE on cash allowances, document receipts and policies for non-cash benefits, remit PIT to IRD by the 15th of the following month, and retain records for at least 7 years.
Common variations to watch for
- Group health insurance — premium paid by employer is generally tax-neutral.
- Employee top-up to insurance — paid from after-tax income, no further deduction.
- Reimbursement for dependant medical — same logic; receipts and dependant evidence required.
- Round-sum monthly medical allowance — taxable; restructure as receipted scheme.
- Wellness benefits (gym, screenings) — generally not assessable when employer-arranged.
Common PIT mistakes to avoid
- Claiming a personal hospital bill as a deduction — there is no such direct deduction.
- Treating cash medical allowance as exempt — assessable as salary. See reimbursement rules.
- Stacking insurance premium against PIT — already non-taxable, no further claim.
- Skipping receipts on reimbursement — IRD may recharacterise as salary. See record retention.
- Union Tax Law 2025-2026 — Section 5(a) (PIT brackets)
- Myanmar Income Tax Law (as amended) — reliefs and assessable income
- Social Security Law 2012 — SSB medical benefit cover
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