Step-by-step calculation
This walk-through assumes the employee is a Myanmar tax resident, single, with no spouse, child, or parent allowances claimed and no allowable donations. All amounts in MMK. The Myanmar tax year runs 1 April – 31 March. Brackets are from the Union Tax Law 2025-2026 (Section 5), as applied by the QHRM Myanmar Tax Calculator and reviewer-verified against the gazetted text.
Step 1 — Apply the 20% basic personal relief
Myanmar's Income Tax Law allows a flat 20% basic personal relief on assessable salary income, capped at MMK 10,000,000 per year. The cap binds only when annual salary exceeds MMK 50,000,000. The relief applies once, to gross assessable income — never to a net figure.
| Annual gross salary | (your 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
Myanmar PIT uses six progressive bands from 0% to 25%. Note: 1 Lakh (L) = MMK 100,000 — the local payroll convention.
| 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 for a salary of MMK 10,000,000/year (taxable = MMK 8,000,000 after 20% relief):
| Band | Amount in band (MMK) | Rate | Tax (MMK) |
|---|---|---|---|
| First 2,000,000 | 2,000,000 | 0% | 0 |
| Next 6,000,000 (within 2M–10M) | 6,000,000 | 5% | 300,000 |
| Annual PIT | MMK 300,000 | ||
Step 3 — Convert to monthly withholding
Employers withhold PIT monthly through PAYE and remit to IRD by the 15th of the following month. For the worked example:
- Monthly PIT withheld: MMK 300,000 ÷ 12 = MMK 25,000/month
- Monthly gross salary: MMK 10,000,000 ÷ 12 ≈ MMK 833,333
- Monthly PIT-only net (before SSB): MMK 833,333 − 25,000 = MMK 808,333
What about SSB and the true net salary?
PIT is one of two statutory deductions. Employees also pay 2% SSB on wages, capped at a MMK 300,000/month wage base — so the maximum employee SSB is MMK 6,000/month. Employers contribute an additional 3% (max MMK 9,000/month).
| Monthly gross | MMK 833,333 |
| Less: PIT | − MMK 25,000 |
| Less: SSB (employee, 2% on MMK 300,000 cap) | − MMK 6,000 |
| Monthly take-home | MMK 802,333 |
Employer takeaway
Calculate annual PIT in three steps: gross less 20% basic relief and dependant allowances, run the residual through the 0–25% Union Tax Law bands, then divide by 12 for monthly PAYE. Remit PIT to IRD by the 15th of the following month, file the annual reconciliation by 30 June (Myanmar tax year 1 April – 31 March), and retain payroll records for at least 7 years.
Common variations to watch for
- Married, no working spouse — claim MMK 1,000,000 spouse allowance.
- Children — claim MMK 500,000 per child per year (see child relief details).
- Non-resident expat — flat 25% on Myanmar-source income, no reliefs (under 183 days presence).
- USD-denominated salaries — convert to MMK at the Central Bank reference rate on payment date.
- Bonuses or 13th-month — assessable in the year paid; gross up PAYE in the month of payment.
Common PIT mistakes to avoid
- Stacking the 20% relief on a net figure — apply once, to gross salary only. See the basic relief explainer.
- Granting allowances without supporting documents — IRD may audit spouse and parent claims.
- Under-withholding early in the year — even out PAYE from month one rather than catching up in March.
- Missing the 15th remit deadline — late PIT triggers interest and penalty per IRD circulars (see penalty details).
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.