Step-by-step calculation
Filing in Myanmar is a two-track flow: the employer files monthly withholding through PAYE; the employee files (or signs off) the annual reconciliation. The Myanmar tax year runs 1 April – 31 March. The default scenario is a Myanmar resident salaried employee, single, no dependants — most filings flow through the employer.
Step 1 — Apply the 20% basic personal relief
| Annual gross salary | MMK 8,000,000 |
| Less: 20% basic personal relief | − MMK 1,600,000 |
| Less: spouse / child / parent allowances | 0 |
| Annual taxable income | MMK 6,400,000 |
Step 2 — Apply the Union Tax Law 2025-2026 brackets
1 Lakh (L) = MMK 100,000.
| 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 | 25% |
| Band | Amount in band (MMK) | Rate | Tax (MMK) |
|---|---|---|---|
| First 2,000,000 | 2,000,000 | 0% | 0 |
| Next 4,400,000 | 4,400,000 | 5% | 220,000 |
| Annual PIT | MMK 220,000 | ||
Step 3 — Convert to monthly withholding and complete filings
- Monthly PIT withheld: MMK 220,000 ÷ 12 ≈ MMK 18,333/month — remitted with employer monthly withholding return by the 15th of the following month.
- Annual reconciliation: employee submits the annual PIT return (Form PaTaKa or current IRD equivalent) by 30 June.
- Where to file: the employee's home-township IRD office, or via the IRD e-filing portal where available.
What about SSB and the true net salary?
Filing for SSB is a separate monthly return at the township SSB office. Employees pay 2% on wages capped at MMK 300,000/month (max MMK 6,000/month). Employers add 3% (max MMK 9,000/month).
| Monthly gross | MMK 666,667 |
| Less: PIT | − MMK 18,333 |
| Less: SSB (employee, capped) | − MMK 6,000 |
| Monthly take-home | MMK 642,334 |
Employer takeaway
Run monthly PAYE — calculate, withhold, file the monthly withholding return, and remit to IRD by the 15th of the following month. At year-end, give each employee a payslip-summary letter so they can file the annual reconciliation by 30 June. Required documents: TIN, payslip totals, dependant declarations, and donation receipts. Retain payroll records and filing copies for 7 years.
Common variations to watch for
- Two-employer year — file a consolidated annual return; PAYE from each employer is credited.
- Freelance side income — see freelancer PIT flow.
- Resigned employees — final-pay PAYE applies; annual return still due in June.
- Non-resident — employer withholds flat 25%; no employee filing typically required for Myanmar-source-only income.
- Stock options or bonuses — disclose on the annual return if not already PAYE-handled.
Common filing mistakes
- Letting the employee skip the annual return — even with full PAYE, IRD expects sign-off.
- No TIN on file — see how to get a TIN.
- Late forms — interest from 30 June. See penalty schedule.
We publish practical, legally-grounded HR guidance for Myanmar employers. Each piece is reviewed by our compliance team against current MLIP and Labor Law requirements.