Myanmar issues 2026 Union Tax Law

27 March 2026

On 15 March 2026, Myanmar issued the Union Taxation Law 2026 (“UTL 2026”), which will enter into force on 1 April 2026. The Union Taxation Law has been issued annually since 2014 to apply to the forthcoming financial year.

With effect from 1 April 2026, the exemptions from specific goods tax and commercial tax for electric vehicles will no longer apply. In particular, UTL 2026 removes the commercial tax exemption previously applicable to “battery electric tricycles; battery electric vehicles, including two-wheelers; their batteries; [and] accessories used exclusively for battery electric vehicles”. The importation and domestic sale of these items will therefore be subject to 5% commercial tax. In addition, specific goods tax will apply to battery electric passenger vehicles. The applicable tax base is the landed value or the sales price, including any specific goods tax.

UTL 2026 also increases the income tax exemption threshold for newly established micro, small, and medium-sized enterprises engaged in local production, home industries, or small-scale industries. Under UTL 2026, “the annual net income up to MMK 20,000,000 … is exempted from income tax for three consecutive years, including the year in which the business started. If more than the aforementioned income is earned, income tax shall only be levied on the income in excess”. This represents an increase from the previous threshold of MMK 15,000,000.

As in previous years, UTL 2026 also revises the specific goods tax value bands and applicable rates for cigarettes, cheroots, liquor, and wine.