More than 5,000 foreign companies fail to contact Internal Revenue Department (IRD) for taxation in 2017-2018 FY, according to an educative talk on taxation at the State Lottery Department (branch) in Yangon on August 15.
Tun Than, Director of the Medium Taxpayers Office-2 at the IRD said: “Only around 1,000 out of 6,000 foreign companies contacted the IRD for the scrutiny of taxation till the end of 2017-2018 FY.”
The IRD highlighted three points why these companies fail to make contact.
“The first point is foreign companies which have got exemptions from Myanmar Investment Commission don’t need to pay taxes. The second point the companies think that they don’t need to pay taxes as they are unable to start their operations and cannot generate income. The last point is companies are in operation and generate incomes. They think that they don’t need to contact the department every year as they have got five-year licenses from the Directorate of Investment and Companies Administration. Some companies contact the department after the expiry of licenses,” Tun Than added.
Companies which fail to contact the IRD every year face difficulty in tax clearance. The IRD has to scrutinize companies for five-year tax clearance, he continued.
The Medium Taxpayers office-2 is working on tax clearance for overseas companies.