Step-by-step calculation
This walk-through assumes a Myanmar tax resident receiving a base salary plus a fixed monthly meal allowance. Default: single, no dependant allowances, no donations. Brackets are from the Union Tax Law 2025-2026 (Section 5). Cash meal allowance is salary; meals provided in the employer's canteen and receipted business-travel meals are generally not assessable. Tax year: 1 April – 31 March.
Step 1 — Apply the 20% basic personal relief
Add the cash meal allowance to base salary. Apply the 20% basic personal relief, capped at MMK 10,000,000/year. Receipted business-travel meals are excluded from assessable income.
| Annual base salary | (figure) |
| Plus: cash meal allowance | (figure) |
| Less: receipted business-travel meals | excluded |
| = Annual gross assessable salary | (sum) |
| 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
| 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% |
Worked illustration — base salary MMK 4,800,000 + meal allowance MMK 600,000 (MMK 50,000/month) = MMK 5,400,000 annual gross (taxable = MMK 4,320,000 after 20% relief):
| Band | Amount in band (MMK) | Rate | Tax (MMK) |
|---|---|---|---|
| First 2,000,000 | 2,000,000 | 0% | 0 |
| 2,000,001 – 4,320,000 | 2,320,000 | 5% | 116,000 |
| Annual PIT (with meal allowance) | MMK 116,000 | ||
Step 3 — Convert to monthly withholding
- Monthly PIT: MMK 116,000 ÷ 12 ≈ MMK 9,667/month
- Monthly gross (base + allowance): MMK 450,000
- Monthly PIT-only net: MMK 450,000 − 9,667 ≈ MMK 440,333
What about SSB and the true net salary?
Cash meal allowance enters the wage base for SSB. The 2% employee deduction is capped at MMK 6,000/month (MMK 300,000 wage base) and the employer 3% at MMK 9,000/month. Most employees with a meal allowance are below the cap; their SSB then rises proportionally.
| Monthly gross (base + meal) | MMK 450,000 |
| Less: PIT | − MMK 9,667 |
| Less: SSB (employee, 2% on MMK 300,000 cap) | − MMK 6,000 |
| Monthly take-home | MMK 434,333 |
Employer takeaway
Pay meal benefits as either a taxable monthly cash allowance, on-premises canteen meals (PAYE-free), or receipted business-travel meals (PAYE-free with receipts). Withhold PIT on the cash allowance line each month, remit to IRD by the 15th of the following month, reflect on the annual reconciliation by 30 June, and retain canteen invoices, meal vouchers, and the meal policy for at least 7 years.
Common variations to watch for
- Meal vouchers — face value is generally salary unless tied to specific business meals.
- On-site canteen, free or subsidised — typically not assessable when available to all staff.
- Per diem on overseas business trips — receipted meals non-taxable; flat per-diem assessable to the extent it exceeds reasonable cost.
- Late-shift meals — generally exempt where employer provides food on premises during overtime.
- Festival meals — one-off employer-funded staff lunches generally not assessable.
Common PIT mistakes to avoid
- Calling a flat monthly meal payment a "canteen contribution" — without delivered meals it is salary.
- Excluding meal allowance from SSB — it is part of the wage base.
- Forgetting to PAYE meal allowance on the bonus month if paid quarterly.
- Mixing reimbursement and allowance on the same line — keep payroll lines separate. See reimbursement tax rules.
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