Deciding to cease your tax residency in Myanmar is a significant step that requires careful planning and adherence to legal procedures. Whether you're moving to another country or changing your tax status, it's crucial to follow the correct steps to ensure a smooth transition. Here's a comprehensive guide to help you navigate through the process.
Determine Your Tax Residency Status
The first step is to determine whether you are considered a tax resident in Myanmar. This generally depends on the number of days you have stayed in the country within a fiscal year. According to Myanmar tax laws, a person is considered a tax resident if they stay in the country for 183 days or more in a fiscal year.
Notify the Internal Revenue Department (IRD)
You must formally notify the Internal Revenue Department (IRD) of your intention to cease being a tax resident. This involves submitting a written notification, which should include your personal details, tax identification number, and the reason for ceasing tax residency in Myanmar.
Settle Outstanding Tax Liabilities
Before you can officially cease your tax residency, you need to settle any outstanding tax liabilities. This includes paying any taxes owed up to the date of your departure or change in status. Ensure that all your tax returns are filed and up-to-date.
Close or Transfer Local Bank Accounts
If you have local bank accounts, you may need to close or transfer them. Notify your bank of your change in residency status and follow their procedures for closing or transferring accounts. Ensure that all financial matters are settled to avoid any future complications.
Obtain a Tax Clearance Certificate
A Tax Clearance Certificate from the IRD is essential to confirm that you have settled all your tax obligations. This certificate serves as proof that you have no pending tax liabilities in Myanmar. Submit a request to the IRD along with the necessary documentation to obtain this certificate.
Update Your Address and Contact Information
Ensure that you update your address and contact information with the IRD and any other relevant authorities. This will ensure that any future correspondence is sent to your new address and that you remain informed of any tax-related matters.
Legal References
- Income Tax Law (1974)
- Union Tax Law (2019)
- Internal Revenue Department Regulations
Useful Links
