Step-by-step calculation
This walk-through covers a Myanmar tax resident manager assigned a company car (with or without driver) for mixed business and personal use. Default: single, no dependant allowances, no donations. Brackets are from the Union Tax Law 2025-2026 (Section 5). Tax year: 1 April – 31 March. The benefit is valued at the employer's running cost attributable to the personal-use share of the vehicle. Strictly business-use vehicles (e.g., delivery vans available only during work) are not assessable.
Step 1 — Apply the 20% basic personal relief on assessable salary including the car benefit
Quantify the car benefit: lease cost or depreciation + insurance + fuel + driver salary, multiplied by the personal-use proportion. Add to gross. Apply the 20% basic personal relief on the combined gross (capped MMK 10,000,000/year).
| Annual base salary | (figure) |
| Plus: car benefit (running cost × personal-use %) | (figure) |
| = 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 24,000,000 + car running cost MMK 12,000,000 × 50% personal-use = MMK 6,000,000 benefit = MMK 30,000,000 annual gross (taxable = MMK 24,000,000 after 20% relief on MMK 6M):
| 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 – 24,000,000 | 14,000,000 | 10% | 1,400,000 |
| Annual PIT (incl. car benefit) | MMK 1,800,000 | ||
Step 3 — Convert to monthly withholding
- Monthly PIT: MMK 1,800,000 ÷ 12 = MMK 150,000/month
- Process car benefit through payroll as an imputed gross amount; no cash to employee.
- Document use log (kilometres, business vs personal trips) to support the personal-use percentage.
What about SSB and the true net salary?
SSB is generally not affected by the car benefit because the wage base is typically already at the MMK 300,000/month cap for staff who receive a company car. Where wages are below the cap and the benefit is treated as part of the wage base by the Social Security Board, contributions may rise (max MMK 6,000 employee, MMK 9,000 employer).
Employer takeaway
Treat company cars provided for mixed personal and business use as a benefit-in-kind. Quantify the annual employer cost (lease/depreciation + fuel + insurance + driver) and apply the personal-use percentage from a documented use log. Add to assessable salary, withhold PAYE, remit to IRD by the 15th of the following month, reflect on the annual reconciliation by 30 June, and retain car logs and cost evidence for at least 7 years.
Common variations to watch for
- Strictly business vehicles (delivery vans, plant cars not taken home) — generally not assessable.
- Pool cars shared by staff — generally not assessable per individual.
- Driver provided — driver's salary forms part of the running cost.
- Cash car allowance — fully taxable salary; see transport allowance.
- Home-to-office commute use — generally personal use, included in the imputed benefit.
Common PIT mistakes to avoid
- Treating company cars as fully exempt — only strictly business vehicles are.
- Skipping the use log — IRD may treat the entire cost as personal benefit on audit.
- Excluding driver salary from the benefit — it is part of the running cost.
- Forgetting the SSB knock-on — confirm with the Social Security Board whether the benefit forms part of the wage base. See SSB and PIT.
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