Sign Up

Personal Income Tax Calculation

Personal Income Tax calculation is required to pay income tax if a person earns more than MMK 4.8 million per year.Reliefs for income tax are following:

  1. Allowance for Parents: MMK 1,000,000 for Father and MMK 1,000,000 for Mother
  2. Allowance for Child: MMK 500,000 for a child (under 18 years old)
  3. Personal Relief: 20% (Maximum MMK 10 Million)
  4. Spouse Allowance: MMK 1,000,000
  5. if a person earns less than MMK 4.8 million per year, he/she is not eligible to pay Personal Income Tax.

Image source: IRD

Example for Personal Income Tax calculation, please see below;

if you earn MMK 1,600,000 per month,                            

Income for 12 month(s)                    19,200,000                         

Personal Relief                                  -3,840,000           20%       

Parent Relief                                      -2,000,000           2000000 for father and mother 

Spouse Relief                                      -1,000,000           Spouse Relief  

Child Relief                                          -1,000,000           Allowance for two children         

Social Security                                    -72,000                

Total Relief                                          -7,912,000                          

Taxable Income                                11,288,000           Employee needs to pay PIT based on this tax

Total Tax (MMK)                                    843,200                

Monthly Tax (MMK)                               70,267     

Details for Myanmar Personal Income Tax Calculation

Description                             Rate              Taxable               Tax Amount (MMK)

Up to 2 Million                        0%              2,000,000              0

2 Million – 5 Million                 5%              3,000,000             150,000

5 Million – 10 Million              10%             5,000,000              500,000

10 Million – 20 Million            15%            1,288,000               193,200

Total                                                                                         843,200 (Yearly Tax)

QNE Cloud Payroll Software can help you get all your payroll ready and able to print Payslip, SSB, Personal Income Tax and all other statutory reports and management reports! With QNE Cloud Payroll, handling payroll is no longer a nightmare but easy even with thousands of employees, Contact Us now!o.