When paying taxes in a foreign currency, it’s important to know the rules and processes so that you can follow them and avoid any possible penalties. In this blog post, we’ll look at the newly released Instruction No. (2/2023) from the Central Bank of Myanmar, which tells taxpayers how to pay in foreign currency and what steps to take. Whether you are a resident citizen, a resident foreigner, or are working with Union Ministries on a shared project, this guide will give you the information you need to move through the process smoothly.
Getting to Know the Rules:
The Central Bank of Myanmar put out Instruction No. 2/2023 on January 25, 2023. This gives clear directions on how to pay taxes in foreign currency. These rules are based on Notification No. 47/2018 from the Ministry of Planning and Finance, dated June 18, 2018, which is about interest payment licenses and fees for licenses to use trademark copyrights.
Things to remember:
Article 30 of the Union’s Taxation Law says that a resident citizen and a resident foreigner who are both foreign nationals must exchange foreign currency for foreign currency at the rate set by the Central Bank of Myanmar. The stranger must then pay taxes in foreign currency because he or she lives there.
Methods of Payment for Taxpayers in the Middle:
(a) Foreign Emergency Bank Branch: Intermediate taxpayers should open a foreign currency account at a foreign emergency bank branch. The tax that needs to be paid in foreign currency should be priced in Myanmar kyat. Instead of using payment orders, the tax amount should be sent to the foreign emergency bank office through a Nostro Bases Transfer using the Swift Code: MYEBMMMY.
(b) State-Owned Banks: If a payment is made through a state-owned bank like Myanmar Foreign Trade Bank (MFTB) or Myanmar Investment and Commerce Bank (MICB), the taxpayer should get a certificate from the appropriate officer at the Intermediate Tax Payers Tax Office (1) and bring it with the deposit slip. The tax can then be paid at any branch of the Myanmar Commercial Bank.
(c) When sending the tax to be paid in foreign currency to the foreign currency accounts of MFTB and MCB, with SWIFT CODE MFTBMMMY in the case of MFTB. When it comes to how to pay taxes in a foreign currency, if it is MICB, use the SWIFT code MICBMMMY and pay with. Then, get a payment order in kyats from MFTB and MICB, get a certificate from the responsible officer at the tax office for intermediate users (1), and pay the tax at the Myanmar Economic Bank branch (3).
It is important for people and companies in Myanmar to follow the rules and procedures for paying taxes in foreign currency. The Central Bank of Myanmar just released Instruction No. 2/2023, which gives clear rules to make sure obedience. By following the steps in this guide, taxpayers who use foreign currency can successfully meet their tax responsibilities. For the most up-to-date information on how to pay taxes in a foreign currency, it is always best to talk to a tax expert or read government announcements.