What are the penalties for non-compliance with PIT in Myanmar?
Late or incorrect PIT compliance in Myanmar attracts interest plus penalty under the Income Tax Law, administered by the Internal Revenue Department (IRD). Late monthly PAYE remittance triggers interest on the unpaid amount; misstatement or non-disclosure can attract a penalty up to 100% of the tax shortfall. Records must be kept ≥ 7 years; rates are set by current IRD circular.
What Myanmar requires: PIT compliance, penalties for breach
The deadline is the 15th of each following month for monthly PAYE; the annual reconciliation by 30 June. Penalties under the Income Tax Law are administered by the Internal Revenue Department (IRD). Specific rates change with IRD circulars — verify before relying.
Filing | Deadline | Form | Authority
| Violation | Penalty | Source |
|---|---|---|
| Late monthly PAYE remittance | Interest on unpaid amount + penalty per IRD circular | Income Tax Law |
| Late annual PIT reconciliation | Penalty per IRD circular | Income Tax Law |
| Failure to register for TIN | Fine + ineligibility to deduct PAYE | Income Tax Law |
| Misstatement / under-disclosure | Up to 100% of tax shortfall | Income Tax Law |
| Refusal of audit cooperation | Per-day fine + escalation | Income Tax Law |
| Failure to issue withholding certificate | Administrative fine | IRD procedure |
Process — how penalties are assessed
- IRD issues a notice of underpayment / late filing.
- Employer responds with computation, payment, and explanation.
- IRD computes interest from due date to payment date, plus statutory penalty (per circular).
- Employer pays via authorised bank or e-payment.
- Penalty appeal lies to the IRD regional tax office and then to the Revenue Appellate Tribunal.
Records and retention
| Record type | Retention duration | Reason |
|---|---|---|
| PAYE returns + receipts | 7 years | Income Tax Law audit period |
| Annual reconciliation + employee schedule | 7 years | Income Tax Law |
| IRD correspondence | 7 years | Penalty / appeal evidence |
Employer takeaway
PIT non-compliance triggers interest plus penalty under the Income Tax Law. Late PAYE accrues interest on the unpaid amount; misstatement or under-disclosure can incur a penalty up to 100% of the shortfall. Specific rates are set by current IRD circular — confirm before relying. Pay PAYE by the 15th, file annual reconciliation by 30 June, and retain records 7 years.
Penalties for non-compliance — drilldown
- Late PAYE: interest from due date + statutory penalty (per IRD circular).
- Misstatement: up to 100% of tax shortfall in serious cases.
- Repeat offences: escalation to enhanced penalty + criminal liability for fraud.
- Failure to register for TIN: fine + ineligibility to claim PAYE as a tax deduction.
- Under-withholding employee PAYE: employer may be made jointly liable for shortfall.
Common PIT compliance mistakes
- Missing the 15th-of-month rule because monthly close runs late.
- Skipping the annual reconciliation thinking monthly PAYE was sufficient.
- Failing to gross up bonuses / lump sums in the payment month.
- Not maintaining FX evidence for USD-paid salaries — see USD conversion.
- See IRD filing calendar and correcting a return.
- Income Tax Law (as amended) — penalties and interest
- Union Tax Law 2025-2026
- IRD circular (current) — penalty rates
Related questions
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