Myanmar has initiated a taxation system targeting Burmese citizens employed abroad, aiming to drive foreign currency influx into the country. This move, however, has raised alarm among employers, fearing the possibility that these taxes might indirectly support the military-led government in Myanmar.
Starting in mid-December of the previous year, Myanmar embassies across several Asian nations announced fresh tax regulations applicable to Myanmar nationals residing within their respective jurisdictions.
According to reports, Myanmar residents working in Japan now face a 2% basic income tax, the exact rate contingent upon their income type. Similarly, those in South Korea, Singapore, Thailand, and Malaysia confront a 2% income tax, the specifics determined by their residency status and earnings.
Failure to comply with this income tax requirement could pose hurdles in passport renewals for Myanmar citizens. Effective since October 1st of the previous year, Myanmar mandates that its citizens residing abroad pay income tax in the currency received from their foreign employers. However, comprehensive details on this tax reform remain undisclosed.
While individual tax amounts may seem minimal, with some Myanmar citizens in Japan potentially paying as little as 1,000 yen (US$7) monthly after deductions, the collective taxation could yield a substantial revenue boost for Myanmar. The Irrawaddy News Agency approximated that over 2 million documented Myanmar workers are employed in Thailand, potentially accruing 300 million baht (US$8.6 million) monthly for the Myanmar military government.
This development has sparked concerns among businesses, fearing implications of indirectly supporting the Myanmar military regime. This apprehension stems from the military’s coup in February 2021, prompting human rights experts and organizations to express apprehension. There are worries that taxes paid by businesses and workers in Myanmar might be channeled into supporting the military, notorious for its crackdown on pro-democracy advocates and other human rights violations.
The imposition of these taxes on overseas workers has stirred unease within Myanmar’s diaspora and international observers, raising questions about the indirect financial backing of a military-led administration that faces global condemnation for its actions.