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August 12, 2020

Promulgating Ordinance on Union Taxation Law

Republic of the Union of Myanmar
Office of the President
Ordinance No. 1/2020

7th Waning of Nayon, 1382 ME
(12 June 2020)

Union Taxation Law Ordinance

The Office of the President has promulgated the following ordinance under the powers conferred by Article 32 of the Union Government Law in accordance with the ‘Overcoming as One: COVID-19 Economic Relief Plan’ for the recovery of crisis-hit businesses resulting from the Coronavirus Disease (COVID-19).
1. The ordinance shall be called the Union Taxation Law Ordinance
2. The ordinance shall have effect for the 2020-2021 Tax Year.
3. The words in this ordinance shall have the same meanings as in the Income-Tax Law and the Union Taxation Law 2019.
4. In order to implement Goal (2) of the “Overcoming as One: COVID-19 Economic Relief Plan”, to reduce the impact on the private sector by promoting investments, trade and banking enterprises, the following tax exemptions have been permitted: –
(a) Non-refundable tax credit on 10 per cent of total additional wage and salary in 2019-2020 Income Year
(b) Deduction of the amount equivalent to 125 per cent of total additional wage and salary in 2019-2020 Income Year from the income as the expenditure
(c) Non-refundable tax credit on 10 per cent of total value for additional inputs of capital equipment in 2019-2020 Income Year
(d) One time depreciation on the amount equivalent to 125 per cent of reduced cost on additional capital equipment for 2019-2020 Income Year

5. The Ministry of Planning, Finance and Industry shall issue Orders to specify which businesses are entitled to enjoy the tax relief plan in accordance with paragraph 4 of this ordinance.

Sd/-Win Myint
President
Republic of the Union of Myanmar

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