The fine for late or deficient stamp duty payment in Myanmar has been reduced by 70 per cent, following the approval of a proposal in parliament last month.

The Myanmar Stamp Act (1899) states that certain instruments, such as lease agreements, should be subject to the payment of stamp duty on or before the date of execution.

Late payment or non-compliance could result in a fine equal to 10 times the payable stamp duty.

At a glance: 

• Myanmar's parliament has approved a proposal to reduce the penalty for stamp duty non-compliance.
• Under the amendments to the Myanmar Stamp Act, the penalty for late or deficient stamp duty has been reduced to three times the amount payable, instead of ten times the amount payable.
• Failure to pay stamp duties in Thailand brings a fine up to six times the unpaid amount, while Singapore charges four times.

On November 26, Myanmar's Union Parliament passed a proposal from the Ministry of Planning and Finance to reduce the penalty to three times the payable duty.

The reduction means Myanmar goes from having one of the heftiest punishments of stamp duty non-compliance in South East Asia to one of the lightest - failure to pay stamp duties in Thailand brings a fine up to six times the unpaid amount, while Singapore charges four times.

Myanmar lawyer Fabian Lorenz told Myanmar Times the move may help the government collect further tax revenue.

“Businesses should keep in mind that instruments non-properly stamped may not qualify as deductible expenses during tax assessments,” he said.

The proposal was initially submitted to parliament at the start of November.

Source: Myanmar Times

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