Are you eligible for commercial tax payment to IRD?
Commercial Tax (CT) is levied on the following four types of activities
· Domestic production and sale of goods
· Importing of goods
· Trading (selling goods for cash, credit, deferred payment, advance selling, exchange, or consignment)
· Providing services
Register
· Any person commences operation of business shall give notice of commencement with the form “Kathakha-3” to the relevant Township Revenue Office.
· A person, who carries on business liable to pay commercial tax shall apply for Taxpayer Registration with the form “Kathakha-1” to the relevant Township Revenue Office.
· The Township Revenue Office will give the taxpayer the Taxpayer Registration Certificate the form “Kathakha-2”
Tax Rate
Revenue Threshold : MMK 50million
0% to 15% based on types of Goods/Services
Payment Timeline
Penalties
Why Important to be timely?
Why GRM?
With GRM International, you could fulfill all the compliance by the guidance of expertise in tax advisory services and better concentration on business operation is much effective.
Save your time, engage GRM!
Commercial Tax (CT) is levied on the following four types of activities
· Domestic production and sale of goods
· Importing of goods
· Trading (selling goods for cash, credit, deferred payment, advance selling, exchange, or consignment)
· Providing services
Register
· Any person commences operation of business shall give notice of commencement with the form “Kathakha-3” to the relevant Township Revenue Office.
· A person, who carries on business liable to pay commercial tax shall apply for Taxpayer Registration with the form “Kathakha-1” to the relevant Township Revenue Office.
· The Township Revenue Office will give the taxpayer the Taxpayer Registration Certificate the form “Kathakha-2”
Tax Rate
Revenue Threshold : MMK 50million
0% to 15% based on types of Goods/Services
- Exempt goods / services : 0%
- Exportation : 0% (All goods / services except crude oil and electricity)
- Sales of gold jewelry : 1%
- Sales proceed for building and repairing infrastructures : 3%
- Hotel and Tourism services : 3%
- Export of crude oil : 5%
- All other goods/services except exempt goods/services : 5%
- Export of electrical power : 8%
- Services of internet : 15%
- Sales of SIM card and services of SIM card : MMK 20,000/ SIM card
Payment Timeline
- Pay commercial tax monthly within 10 days of the following month.
Penalties
- Ten percent of monthly commercial tax liability
Why Important to be timely?
- Timely payment is essential not only for the compliance of tax regulations but also for avoidance of penalty for late payment.
- If failure is due to willfully impede or to attempt to impede the collection and/or payment of tax in accordance with the Tax Administration Law, you are guilty of an offense and are liable on conviction to a fine of K 250,000, or, to imprisonment for a term up to one year, or both.
Why GRM?
With GRM International, you could fulfill all the compliance by the guidance of expertise in tax advisory services and better concentration on business operation is much effective.
Save your time, engage GRM!
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