Myanmar Implements 2026 Union Tax Law with Key Amendments
On March 17, 2026, Myanmar's National Defence and Security Council enacted the Union Taxation Law 2026 (Law No. 18/2026), setting forth the applicable tax rates and procedures governing income tax, commercial tax, specific goods tax, and gemstone tax. The law took effect on April 1, 2026, marking the commencement of the financial year 2026-2027.
The 2026 Union Tax Law retains most provisions from the previous year but introduces notable amendments, particularly concerning the Specific Goods Tax (SGT). Key changes include:
- Increased SGT tiers and rates for products such as cigarettes, cheroots, liquor, and wine.
- Removal of the SGT exemption previously granted to battery electric vehicles (BEVs), which are now subject to a fixed rate of 5%.
Additionally, the law updates the income tax exemption threshold for eligible start-up micro, small, and medium enterprises, cottage industries, and small-scale domestic production-based industries. Effective April 1, 2026, the threshold has been increased from MMK 15 million to MMK 20 million per year. This exemption applies for three consecutive years, including the year of business commencement, with income exceeding the threshold remaining taxable.
These amendments reflect Myanmar's efforts to adjust its tax policies in response to economic developments and to provide support for small and medium-sized enterprises, while also expanding the tax base through the inclusion of previously exempted goods.