The State Peace and Development Council
The State Budget Law, 2003
(The State Peace and Development Council Law No. 6/2003)
The 11th Waning Day of Taboung, 1364 M.E. (28th March, 2003)
The State Peace and Development Council hereby enacts the following law:-
PART I
Title and Date of Effectiveness
1. (a) This Law shall be called the State Budget Law, 2003.
(b) The provisions relating to commercial tax contained in section 28 to section 33 under Part VI of this Law and the provisions contained in section 36 to section 45, the provisions contained in section 47 and section 48 and the provisions contained in section 51 to section 62 under Part VII shall take effect commencing from the assessment year 2003-2004.
(c) With the execption of sections contained in sub-section (b) of section 1 of this Law, the provisions of the remaining sections shall take effect commencing from 1st April, 2003 for the financial year 2003-2004.
PART II
The State Peace and Development Council, Multi-Party Democracy General Election Commission, Government, Chief Justice, Attorney General , Auditor General, Ministries and Departments
Chapter i
Receipts and Expenditures
2. The State Peace and Development Council, Multi-Party Democracy General Election Commission, Govenment, Chief Justice, Attorney General, Auditor General, Ministries and Developments shall carry out their functions in accordance with the State Budget Programme. In carrying out such functions, all receipts shall be credited to the State Budget and all expenditures payable shall be debited from the State Budget.
3. (a) The respective persons who have been given the esponsibility for the receipts and expenditures of the State Peace and Development Council, Multi-Party Democracy General Election Commission, Government, Chief Justice, Attorney General, Auditor Genera, Ministries and Departments shall supervise and collect those receipts and administer those expenditures as are shown against them in Schedules (1), (2), (3) and (4).
(b) The respective persons who have undertaken the responsibility under sub-section(a) mayh delegate their powers to the respective persons serving under them.
(c) Supervision and collection of the receipts and administration of the expenditures shall be in accordance with the provisions of this law, relevant laws, rules, regulations, bye-laws, orders, directives and procedures.
4. (a) Out of the estimated receipts shown in Schedules (1) and (3), if foreign aids and loans received under Chapter III exceed the estivated amount, and if expenditures of those works which are to be incurrend out of such excess amount received as foreign aids and loans are in excess of the sanctioned expenditures shown in Schedules (2) and (4), the Government may approve after scrutiny. Provide that, if expenditures to be incurred out of the State Budget in Kyats converted from the aforesaid foreign aids and loans are not covered by the sum shown in Schedules (2) and (4), then it may be incurred out of the reserve fund in accordance with the provisions of section 6.
(b) The Government shall submit matters relating to expenditures in excess permitted under sub-section (a) to the State Peace and Development Council together with objects and reason casewise.
5. In respect of any alterations of sums shown in Schedules (1), (2), (3) and (4) under requirement of work, it shall be shown in the revised estimate budget for the 2003-2004 financial year submitted to the State Peace and Development Council.
Chapter II
Reserve Fund
6. (a) Expenditures incurred by the State Peace and Development Council, Multi-Party Democracy General Election Commission, Government, Chief Justice, Attorney General, Auditor General, Ministries and Departments out of the reserve fund shown in Schedule (4), coloumn 12 shall be effected only in acordance with the following conditions:-
(i) being expenditure which cannot be anticipated.
(ii) being a case in which expenditure must be incurred within the financial year;
(iii) where transfer of budget heads cannot be effected or where there is no allotment for transfer of budget heads under the existing laws, rules, regulations and by-laws.
(b) Any expenditure from the reserve fund shall be made only by the decision of the Government.
(c) The Government shall submit matters relating to expenditure to be incurred out of the reserve fund to the State Peace and Development Council together with objects and reasons casewise.
7. The State Peace and Development Council, Multi-Party Democracy General Election Commission, Government, Chief Justice, Attorney General, Auditor General, Ministries and Departments shall not be allowed to submit supplementary budget of teh State in respect of receipt of amounts in excess of or less than the estimated amount under this Law or appropriation of allotment by transferring budget heads within the sanctioned expenditure or expenditure incurred from the reserve fund or expenditure incurred with the sanction of the Government under section 4. Provided that, if expenditures in conformityh with the conditions contained in section 6 are not covered by teh reserve fund allowed under this Laws, then such expenditures may be submitted to the State Peace and Development Council together wiith objects and reasons casewise.
Chapter III
Taking of Loans
8. For the purpose of projects or for expenditues shown in the State Budget, the Government may take loans by issuing security bonds guaranteed by Government or debentures or by other means, within the country or from abroad. Reasonable rates of interest may be prescribed for such loans. Conditions for repayment, redemption or provision otherwise may also be stipulated.
9. Regarding loans obtained by issuing security bonds for covering the deficit in the budget of the previous financial year, ne security bonds may be issued when payment of the loan becomes due.
10. The State Economic Organizations and Cantonment Municipalities may take loans from abroad, for their projects with the approval of teh Government.
11. The Government may grant permission to any Government Department to borrow money from abroad for any project.
12. (a) The Government may empower the Minister of the Ministry of Finance and Revenue for carrying out wholly or partly the duties contained in this Chapter III.
(b) The Minister of teh Ministry of Finance and REvenue may, on behalf of the State furnish guarantees for the taking of loans under this Chapter III.
13. During the financial year commencing 1st April, 2003 and ending on 31st March, 2004 the amount of loans actually received by execution of loan agreements under this Chapter III shall not exceed Kyats two hundred thousand million.
PART III
State Economic Organizations
14. The State Economic Organizations shall carry out their functions in accordance with the State Budget Programme. In carrying out such functions, all receipts shall be credited to the State Budget and all expenditures payable shall be debited from the State Budget.
15. (a) The respective persons who have been given the responsibility for the receipt and expenditure of the State Economic Organizations shall supervise and collect those receipts and administer those expenditures as are shown against them in Schedules (5) and (6).
(b) The respective persons who have undertaken the responsibility under sub-section (a) may delegate their powers to the respective persons serving under them.
(c) Supervision and collection of the receipts and administration of the expenditures shall be in accordance with the provisions of this law, relevant laws, rules, regulations, by-laws, directives and procedures.
16. (a) The Government may alter the amounts shown in Schedules (5) and (6), if it becomes necessary for the functions of the State Economic Organizations, such alterations shall be shown in the revised estimate budget for the 2003-2004 financial year submitte dto the State Peace and Development Council together with objects and reasons therefor.
(b) The Government mayh determine the amount of money to be contributed by the State Economic Organizations towards the State.
PART IV
Cantonment Municipalities
17. The Cantonment Municipalities shall subsist on their own funds and shall carry out thier functions in accordance with their Budget Programmes.
18. (a) The respective persons who have been given the responsibility for the receipt and expenditure of Cantonment Municipalities shall supervise and collect those receipts and administer those expenditures as are shown against them in Schedules (7) and (8).
(b) The respective persons who have undertaken the responsibility under sub-section (a) may delegate their powers to teh respecive persons serving under them.
(c) Supervision and collection of the receipts and administration of the expenditures shall be in accordance with the provisions of this Law, relevant laws, rules, regulations, by-laws, orders, directives and procedures.
19. (a) The Government may alter the amounts shown in Schedules (7) and (8), if it becomes necessary for teh functions of Cantonment Municipalities. Such alterations should be shown in the revised estimate budget for the 2003-2004 financial year submitted to teh State Peace and Development Council together with objects and reasons therefor.
(b) The Government may permit Cantonment Municipalities to obtain money required for carrying out their functions or for investment from grants or loans.
20. The Cantonment MUnicipalities may collect only such rates and taxes permitted by teh existing laws, rules, regulations, bye-laws, orders, directives as are relevant to them.
PART V
Development Committees and Municipalities
21. The Government may grant loans and contributions to the Development Committees and Municipalities.
PART VI
Commercial Tax
22. In the list of non-taxable goods contained in annexed Schedule (1) of the Commercial Tax Law, serial numbers 66, 67, 68, 69, 70, and 71 shall be inserted respectively after serial number 65, as mentioned in Schedule (9) of this Law.
23. In the list of goods on which tax shall be levied at 5 per cent contained in annexed Schedule (2) of the Commercial Tax Law, serial numbers 32, 33, 34, 35, 36, 37, 3*, 39, 40, 41, 42, 43, 44, 45, 46, 46, 48, 49, 50, 51, 52, 53, 54, 55, and 56 shall be inserted respectively after serial number 31, as memtioned in Schedule (1) of this Law.
24. In the list of goods in which tax shall be levied at 10 per cent contained in annexed Schedule (3) of the Commercial TAx Law, serial numbers 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, and 131 shall be inserted respectively after serial number 120, as memtioned in Schedule (11) of this Law.
25. In the list of goods on which tax shall be levied at 20 per cent contained in annexed Schedule (4) of the Commercial Tax Law, serial numbers 89, 90, and 91 shall be inserted respectively after serial number 88, as mentioned in Schedule (12) of this Law.
26. In the list of goods on which tax shall be levied at 25 per cent contained in annexed Schedule (5) of the Commercial Tax Law, serial numbers 52, 53, 54, and 55 shall be inserted respectively after serial number 51, as mentioned in Schedule (13) of this Law.
27. In the list of services contained in annexed Schedule (7) of the Commercial Tax Law, serial numbers 6, 7, 8, 9, and 10 shall be inserted respectively after serial number 5, as mentioned in Schedule (14) of this Law.
28. Notwithstanding the provisions contained in annexed Schedule (1) to Schedule (6) and in serial number 3 of Schedule (7) of the Commercial Tax Law, if foreign currency is included in the proceeds of sale or total proceeds of sle received by any person from any production and sale of goods in respect of teh kinds of goods contained in Schedule (1) to Schedule (6) or from any commercial transavtions of purchase and sale of goods contained in serial number 3 of Schedule (7), commercial tax equivalent to 8 per cent of the amount of foreign currency so included shall be paid in such foreign currency.
29. Notwithstanding the provisions contained in annexed Schedule (1) to Schedule (6) and in serial number 3 of Schedule (7) of the Commercial Tax Law, if Kyat is included in proceeds of export and sale receive by the any perso n from produciton and slae of goods in fespectof the kinds of good and contained in Schedule (1) to Schedule (6) or from any commercial transcation of purchase and sale of goods contained in serial number 3 of Schedule (7) in border trade between the Union of Myanmar and the Union of Myanmar and Thailand, commercial tax equivalent to 8 percent of the amount of Kyat so included shall be paid in Kyat.
30. The provisions contained in sections 28 and 29 shall not be applicable to proceeds of sale from export items re-exported by the entrprises by cutting, making and packing (CMP) system. However, it sale is made locally in foreign currency, commerical tax equivalent to 8 per cent of hte proceeds of sale shall be paid in such foreign currency.
31. For the avoidance of double tax payments. if any person has previously paid comercial tax for a certain type of goods in foreign currency, no commercial tax shall be assessed again on export sale proceeds in foreign currency for such goods.
32. The provisions contained in sections 28, 29 and 30 shall not be applicable to the exemption and relief from tax permitted by nottification issued under section 8 of the commercial Tax Law.
33. Whoever imports godds in border trade between the Union of Myanmar and People’s Republic of China, the Union of Myanmar and the Union of Myanmar and Bangladesh, using Kyat or foreign currency, as a special case, the commercial tax on the landed cost of goods shall be paid in Kyat if paid in Kyat or foreign currency if paid in such currency according to the rates prescribed in the commercial tax law. The commercial tax to be paid in this manner shall not apply to the goods exempted from commercial tax on imports under any existing law.
PART VII
Income Tax
Chapter 1
Definition
34. The expressions contained in this Part shall have the same meanings as are in the Income- tax Law.
35. Any person having income under the head of salary shall be assessent at rated prescribed in the following table: –
Table
36. In case of non-resident Myanmar citizens, the income tax shall be 10 per cent on the total income accured abroad in foreign currency before any reliefs allowed under section 6 of the Income-tax Law are deducted.
37. In case of a foreigner engaged in a State Enterprise of a State sponsored project, enterprise or in any transaction with the approval of the Ministery concerned the income-tax shall be 20 percent of the total income, before any feliefs allowed under section 6 of the Income-tax Law are deducted.
38. In the case of an association of persons formed in a foreign country, which si enganed in a State Enterprise of State sponsored project, enterprise, or in any transaction with the approval of the Ministry concerned, the tax shall be 30 per cent of the total income, before any reliefs allowed under section 6 of the Income-tax Law are deducted.
39. In the case of company establishment in Myanmar under the Myanmar Compainies Act of under the Special Company Act of 1950, the income tax shall be 30 per cent of the total income, before any feliefs allowed under section 6 of the Income-tax Law are deducted.
40. In the case of non-resident foreigner the income tax shall be 35 per cent of the total income before any reliefs allowed under section 6 of the Income-tax Law are deducted. (If the income is earned in foreign currency, the income-tax shall be paid in that foreign currency. However, if the Income-tax calculated at the relevant rates mentioned in table under section 41 exceeds the sum calculated at 35 per cent, then the grater sum shall be paid.)
41. Except provisions contained in secitons 36, 37, 38, 39 and 40 the income under the heads-profession, business, property, income from undisclosed source and income from other source-shall be assessed at rates prescribed in the following table: —
Table
Chapter III
Rates for Cp-operative Sector
42. Income of Primary Co-orprative Society, Co-operative Syndicate, Union of Coopertaive Syndicates of Central Co-operative Scoiety formed and registered under the Cooperative Law, Shall be assessed income tax rates prescribed in the following table: —
Table
Chapter IV
Income -Tax Rates for State Economic Organizations
43. The income tax on the total income of State Economic Organizations shall be 30 per cent, before any reliefs allowed under section 6 of Income- tax Law are deducted.
Chapter V
Income-tax Rates on Profits Gained from Capital Assets of Proivates
Co-operative and State Sectors
44. The tax on the capital gains shall be 10 per cent before any feliefs allowed under section 6 of the Income-tax Law are deducted. However, for non-resident foreigner, the income tax shall be charged at the rate of 40 per cent foreigner, the income tax shall be charged at the rate of 40 per cent.
Chapter VI
Income-tax Rates of Enterprises of Private and Co-operative Sectorstak
Under taken by the Permit of the Myanmar Foreign Investment Comession
45. If the enterprise is formed under the permit issued by the Myanmar Foreign Investment Comession, the Income tax shall be 30 per cent on its total income before any reliefs allowed under section 6 of the Insome-tax Law are deducted.
Chapter VII
Determination of Assessable Income
46. Under the head of salary in section 35, no income-tax shall be assessed on a total income more than Kyat 30000.
47. NO income-tax shall be assessed under sections 41 and 42, if the total income is not more than Kyat 30000.
48. Capital assets of one or more if sold, exchanged or transferred, and if the total value of such transaction within a year does not exceed Kyat 100000, income tax shall not be paid.
49. In case where, although the income exceeds te hamount shown in sections 46, 47 and 48, if the excess is not considerable, the Ministry of Finance and Revenue may,bby notification prescribe special modes of caluclating the assessment of income-tax as required, so that there shall be fairness in assessment and without burdening the tax payer.
50. Notwithstanding anything contained in sub-section (b) of section 4 of the Income-tax Law, no additional income-tax shall be paid other that the taxes shoen above.
Chapter VIII
Exemption and RElief from Tax
51. The basic relief allowed under section 6 of the Income-tax Law shall be equibalent to 20 per cent of each class of income. Provided that total relief for a year shall not exceed Kyat 12000.
52. Reliefs for the sppuse of a tax-pay aer and children, other than an association of persons under section 6 of the Income-tax Law, shall be allowed as follows:–
(a) Kyat 5000 for tax-payer’s spouse;
(b) Kyat 1000 for each child not over 5 years of age.
(c) Kyat 1200 for each child above 5 years of age, who has not yet completed 10 years
(d) Kyat 1600 for each child above 10 years of age, who has not yet completed 15 years;
(e) Kyat 2000 for each child who is above 15 years.
53. REliefs allowed under sub-sections (b) (3) an (4) of section 6 of the year Income-tax Law shall be teh amount actually paid by teh tax-payer during the relevant assessment year.
Chapter IX
Income – tax Assessment in Kyat an Foreign Currency
54. Notwithstanding the provisions contained in the Income-tax Law, Myanmar citizens, who earn foreign currency for the sale of commodities produced and carrying out of any kind of business, shall pay 2 per cent of the total foreign currency earning as income-tax in such foreign currency.
55. Payment of 2 per cent income-tax for foreign currency earning prescribes in section 54 shall not be applicabel to receipts of enterprises doing business under permit issued by the Myanmar Investment Commission.
56. If the enterprise doing business under permit issued under the Myanmar Citizens Investment Law receive foreign currency, teh income-tax shall be calculated according to the provision prescribed in Regulation 5-B of the Income-tax REgulations an income-tax shall be paid in such foreign currency.
57. Notwithstanding the provisions contained in sub-section (n) (1) of section 3 of teh Income- tax Law, if resident foreigner earns the following types of income in foreign currency, the income tax shall be paid at the rate of 15 per cent in that foreign currency earning for the receipts of such total foreign currency; —
(a) Income from renting building, vehicles, machineries and other properties;
(b) Income under the head of salary;
(c) except association of persons, the income derived by a person for service rendered as representtive, adviser, agent, incoem under the head of profession and other type of services.
58. Notwithstanding the provisions contained in sub-seciton(n) (1) and (2) of section 3 of the Income-tax Law, if resident Myanmar citizens and non-resident Myanmar citizens earn any type of income prescribed in section 57 in foreign currency, the income-tax at the rate of 10 per cent shall be paid in such foreign currency for the total foreign currency received.
59. The provisions contained in sctions 57 and 58 shall not be applicable to income ofenterprises doing business under the permit issued under the Union of Myanmar Foreign Investment Law, teh income-tax shall be paid at the same rate which is applicable to Myanmar citizens who earn foreign currency.
60. If resident foreigner earns foreign currency from the sale of commodities produced, doing any kind of business and carrying out of any kind of service, the income- tax on that receipt shall be calculated according to the provisions prescribed in Regulation 5-B of Income-tax Regulation and paid in foreign currency.
61. If Kyat is included in the export sale in borde trade between the Unio of Myanmar an dpeople’s Republic of China, the Union of Myanmar and republic of India, the Union of Myanmar and Thailand, the income-tax equivalent to 2 per cent of the amount of Kyat so included shall be paid in Kyat. Provided that it is not applicable to the income of enterprises under permit issued by the Myanmar Citizens Investment Law.
62. If Kyat is included in the income of enterprise doing business under permit issued by the Myanmar Citizens Investment Law, the tax shall be calculated and paid according to the provisions of the Income-tax Law. If both Kyat and foreign currency are included in the income, the tax shall be calculated and paid according to the provisions of Regulation 5-B of the Income-tax Regulations.
Sd./ Than Shwe
Senior General
Chairman
The State Peace and Development Council
.jpg)
.jpg)