Myanmar's Rules For Offshore Remittances Of Foreign Currency Take Effect

• Law Firm: Tilleke & Gibbins
• Subject Matter: Finance and Banking, Tax, Financial Services, Income Tax, Withholding Tax
• Author: Mr Derrick Khoo, Khin Pearl Yuki Aung and Aye Thuzar Hlaing
• Published date: 26 May 2023

On April 25, 2023, Myanmar's Ministry of Planning and Finance issued a standard operating procedure (SOP) requiring entities and individuals remitting foreign currency equivalent to more than USD 10,000 out of Myanmar to clear their tax payments prior to the remittance. The SOP took effect on May 1, 2023. This is the latest development since Myanmar began imposing restrictions in April 2022 on the remittance of foreign currency out of the country, implemented by the Central Bank of Myanmar and the Foreign Currency Supervisory Committee.

The SOP requires the remitters described above to obtain certain documents evidencing payment of all requisite taxes and duties, and to submit them to their licensed authorized dealer (AD) bank as part of the remittance process. The documents required as evidence differ depending on the purpose of the remittance. The SOP details three main categories, as summarized below.

Payments for Interest, Royalties, Trademarks, Copyrights, or Services

A remitter of foreign currency for payment of interest, royalties, trademarks, copyrights, or services, must first apply to the Internal Revenue Department (IRD) for evidence that all applicable withholding tax has been paid. In addition, if the country to which the...