Step-by-step calculation
This walk-through covers two common patterns: an executive director on Myanmar payroll receiving salary plus board fees, and a non-employee (independent or foreign) director receiving fees only. Default: Myanmar tax resident director, single, no dependant allowances, no donations. Brackets are from the Union Tax Law 2025-2026 (Section 5). Tax year: 1 April – 31 March. Director compensation is assessable salary; the only branch is the residency test, which determines progressive vs flat-rate treatment.
Step 1 — Apply the 20% basic personal relief (resident directors)
Aggregate salary, board fees, sitting fees, and any equity compensation. Apply the 20% basic personal relief on the total (capped MMK 10,000,000/year). Non-resident directors receive no relief and pay flat 25%.
| Annual director salary (executive) | (figure) |
| Plus: board / committee / sitting fees | (figure) |
| Plus: stock options or equity vested in year | (figure) |
| = Annual gross director income | (sum) |
| Less: 20% basic personal relief (resident only) | − 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 — resident executive director: salary MMK 30,000,000 + board fees MMK 6,000,000 = MMK 36,000,000 annual gross (taxable = MMK 28,800,000 after 20% relief on MMK 7.2M):
| Band | Amount in band (MMK) | Rate | Tax (MMK) |
|---|---|---|---|
| First 2,000,000 | 2,000,000 | 0% | 0 |
| 2,000,001 – 10,000,000 | 8,000,000 | 5% | 400,000 |
| 10,000,001 – 28,800,000 | 18,800,000 | 10% | 1,880,000 |
| Annual PIT (resident director) | MMK 2,280,000 | ||
For a non-resident foreign director receiving MMK 6,000,000 of Myanmar-source board fees only: flat 25% × 6M = MMK 1,500,000 PIT, no relief.
Step 3 — Convert to monthly withholding
- Resident executive director: MMK 2,280,000 ÷ 12 = MMK 190,000/month PAYE.
- Non-employee resident director: may settle via the annual return with quarterly estimated payments.
- Non-resident director fees: withholding tax at the applicable rate by the paying company; the director's PIT on those fees is settled against the withholding.
What about SSB and the true net salary?
Executive directors on payroll are subject to SSB on regular wages — 2% employee + 3% employer up to the MMK 300,000/month wage base (max MMK 6,000 employee, MMK 9,000 employer). Non-employee directors receiving fees only are typically not in the SSB scheme since they are not employees in the labour-law sense.
Employer takeaway
Aggregate every item of director compensation — salary, board fees, sitting fees, equity — into a single annual figure. For resident directors, apply the 20% relief and run the bands; for non-resident directors, apply flat 25% on Myanmar-source fees. Withhold PAYE for executive directors monthly and remit to IRD by the 15th of the following month. File the annual reconciliation by 30 June, and retain board minutes, fee approvals, and PAYE math for at least 7 years.
Common variations to watch for
- Foreign director who attends only board meetings in Myanmar — non-resident; flat 25% on fees.
- Executive director on offshore + onshore split — apportion based on duties; see expat PIT.
- Director with multiple board memberships — aggregate fees on annual return.
- Director equity at vest/exercise — see stock options.
- Non-employee director with own business — fees taxed as employment-style income; business income separate.
Common PIT mistakes to avoid
- Treating board fees as outside PAYE for an executive director — they are part of total compensation.
- Applying the 20% relief to a non-resident director — non-residents pay flat 25%.
- Skipping withholding tax on non-resident director fees — paying company is liable.
- Mismatch between board minutes and PAYE — invites IRD audit. See record retention.
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