What is the PIT withholding schedule in Myanmar?
Myanmar's PIT withholding schedule is monthly: the employer projects annual gross, applies the 20% basic relief, runs the residual through the 0–25% Union Tax Law 2025-2026 brackets, divides the annual PIT by 12, and withholds that amount from each payslip. Remit to IRD by the 15th of the following month with the monthly PAYE return; file the annual reconciliation by 30 June.
Step-by-step: the Myanmar PIT withholding cycle
This walk-through covers the calendar mechanics of Myanmar PAYE withholding for a typical employer. Default: resident employees, single, no dependant allowances claimed. Brackets are from the Union Tax Law 2025-2026 (Section 5). The Myanmar tax year runs 1 April – 31 March. Withholding follows a monthly cycle aligned to a year-end reconciliation.
Step 1 — Apply the 20% basic personal relief at year-start projection
Each April the employer projects every employee's annual gross (12 × monthly + expected bonus + variable pay). Apply the 20% basic personal relief, capped MMK 10,000,000/year, plus dependant allowances. The output is each employee's annual taxable income.
| Projected annual gross (12 × monthly + bonus) | (figure) |
| Less: 20% basic personal relief | − up to MMK 10,000,000 |
| Less: spouse / child / parent allowances | 0 in default case |
| Annual taxable income | = residual |
Step 2 — Apply the Union Tax Law 2025-2026 brackets to set annual PIT
| 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% |
| 700L & above (MMK 70,000,000+) | 25% |
Annual schedule of compliance events:
| Event | Date |
|---|---|
| New tax year begins | 1 April |
| Project annual gross + set monthly PAYE | April |
| April PAYE return + remit | By 15 May |
| May PAYE return + remit | By 15 June |
| (repeats monthly) | By 15th of following month |
| Tax year ends | 31 March |
| Annual employer reconciliation + PAYE certificates | By 30 June |
| Employee personal annual return | By 30 June |
Step 3 — Convert to monthly withholding routine
- Each month: close payroll → freeze PAYE → file return → remit by 15th.
- Mid-year salary change: recompute the projection from change date onwards.
- Bonus month: withhold one-off PIT or smooth into remaining months.
- Year-end: reconcile all 12 monthly returns to the annual figure.
What about SSB and the true net salary?
SSB follows the same monthly rhythm: 2% employee + 3% employer on the wage base capped at MMK 300,000/month (max MMK 6,000 employee, MMK 9,000 employer), remitted to the Social Security Board monthly. PIT and SSB monthly cycles run in parallel; reconcile each cycle.
| Cycle | PIT remit | SSB remit |
| Monthly | By 15th of next month (IRD) | Monthly to SSB |
| Annual | Reconciliation by 30 June (IRD) | SSB annual confirmation if requested |
Employer takeaway
Operate a fixed monthly PAYE rhythm: project at April, withhold 1/12 each month, remit to IRD by the 15th of the following month, recompute on salary or bonus changes, and reconcile to the annual PIT figure by 30 June. Run SSB on the same cadence. Retain calculations and remit receipts for at least 7 years.
Common variations to watch for
- Mid-year joiner — annualise from start date through 31 March, not full 12 months.
- Mid-year leaver — finalise on actual income and issue PAYE certificate.
- Quarterly bonus — gross-up PAYE on the bonus month.
- Bracket update during year — apply prospectively from the effective date in the new Union Tax Law.
- Public holiday clash with 15th — file before, not after.
Common PIT mistakes to avoid
- Catching up PAYE in March — cashflow shock to the employee; spreads compliance risk.
- Skipping a month's remit — late filing surcharge plus interest. See penalties.
- Ignoring mid-year changes — recompute when salary or family status changes.
- Forgetting the annual reconciliation — even with perfect PAYE, year-end filing is required. See filing forms.
- Union Tax Law 2025-2026 — Section 5(a) (PIT brackets)
- Myanmar Income Tax Law (as amended) — withholding obligations
- Social Security Law 2012 — SSB 2%/3% rates and MMK 300,000 wage-base cap
Related questions
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