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Myanmar: New digital tax collection system to launch next year

Government is amending the tax laws to be clear as well as going to use IT technology for taxpayers to pay tax easily.

The government will make existing tax laws clearer and start using technology to enable taxpayers to pay their taxes more conveniently. 

The tax collection system will be changed from the current paper-based system to a digital system, said U Min Htut, director general of Internal Revenue Department under the Ministry of Planning and Finance, which collects 80 percent of the country’s taxes.

“We’re trying to use technology for the convenience of the taxpayers,” he said at a press conference held in Nay Pyi Taw last week.

By going digital, the ministry also intends to reduce corruption at the tax office. “Currently, taxpayers have to physically be present at the tax office and deal with the officers, which encourages corruption,” he said. With an electronic system, taxpayers can pay their taxes directly to the government, which reduces corruption. 

“Now, only one thing is left and it is to sign an agreement to buy the Integrated Tax Administration System software,” said U Min Htut. The software will be provided by Canada’s Sogema Team Company. 

The agreement is expected to be signed this year, after which it will take another 12 months to ready the system and deploy the new software.   

Apart from enabling the payment of income tax, the software will be able to handle other services such as submissions of customs declaration forms, loan applications and registrations.

The new system will also be connected to other government departments such as the Myanmar Port Authority, Company Registration Office and Immigration Department. This will also help prevent tax evasion, said U Min Htut. 

Source: https://www.mmtimes.com/news/new-digital-tax-collection-system-launch-next-year.html