Today US Dollar Rate: City Bank
Selling - 2100 MMK
Buying - 2100 MMK
Today US Dollar Rate: City Bank
Selling - 2100 MMK
Buying - 2100 MMK
Property Tax is a tax which levy tax yearly, quarterly and monthly in percentage fixing on evaluate the assessment yearly upon unmovable Government, private and organization owned, or land and building and collect during Yangon City Development Committee boundary. This text contained general tax, lighting tax, water tax, waste and sewage tax.
In collecting the property tax of Hotels, Motels, Inns and Resting Houses’ rental rooms, monthly profit and loss figure sending to Ministry of Hotel and Tourism, removing the relieves to the following and levy at 6% on the net balance and collected according to the income list and statement as per submitted for the relevant period-
Relieves on:
| (A) | 10% of the income tax |
| (B) | 10% of the commercial tax |
| (C) | 10% of the service charges |
| (D) | Rental fees should be given or paid to the land building owner(only if rental fees is applicable) |
| (E) | 4% of Bank service charge (only if applicable) |
| (F) | Net Balance = Monthly Ratable Value (MRV) |
| (G) | Property Tax = 6% of MRV |
Property taxes levied for Hotels, Motels, Inns that do not meet the target income requirements are assessed at fixed rates as mentioned below;
| Number of Rooms | Monthly Ratable Value (MRV) | Property Tax per one Month(MMK) |
| 1-30 | 50,000 MMK | 6,500 MMK |
| 31-60 | 70,000 MMK | 9,100 MMK |
| 61-100 | 100,000 MMK | 13,000 MMK |
| 101-200 | 140,000 MMK | 18,200 MMK |
| Above 201 | 190,000 MMK | 24,700 MMK |
Note: To levy the FDI, JV Hotels which are calculated and levied according to the rates of the ordinary land and buildings.
To levy the relevant property taxes, the following documents mentioned below are required;
Levying and collecting the Property Taxes for Apartments, Building Towers, Residences
5. After deducting the rent paid to the relevant party from the monthly rental income of the Apartments, Towers, Residences, the following allowances are subtracted from the remaining amount, and the net balance is levied at 13% and collected accordingly to the income list and statement as per submitted for the relevant period-
Relieves on:
| (A) | 10% of the income tax |
| (B) | 25% on the last balance amount for the cost of renovating the building |
| (C) | 25% on the last balance amount for the cost of general charges |
| (D) | 20% on the last balance amount for the cost of service charges |
| (E) | Net Balance = Monthly Ratable Value (MRV) |
| (F) | Property Tax = 13% of MRV |
Documents required for levying of the property taxes are as mentioned below;
Levying and collecting the Property Taxes for Plazas
As for all the Palazas the income received from the monthly rental fees from it, first of all after deducting the rental fees paid to the party concerned from the remaining balance as mentioned below once again after deducting the relief amount, on the net balance a 13% is hereby levied and collected during the period accordingly when the income list is submitted.
Relieves on;
| (A) | 10% of the income tax |
| (B) | 25% on the last balance amount for the cost of renovating the building |
| (C) | 25% on the last balance amount for the cost of general charges |
| (D) | Net Balance = Monthly Ratable Value(MRV) |
| (E) | Property Tax = 13% of MRV |
Levying and collecting the Taxes for land/buildings/apartments that are in-turn hired/rented
If the buildings/land/apartments are rented for the purpose of living or for business matters after deducting the relief amount as per mentioned below on the balance 13% is levied and collected on one month rental rate according to the period of the contract-
Relieves on;
| (A) | 10% of the Income Tax |
| (B) | 25% on the last balance amount for the cost of renovating the building |
| (C) | 25% on the last balance amount for the cost of general charges |
| (D) | Net Balance =Monthly Ratable Value (MRV) |
| (E) | Property Tax = 13% of MRV |
If the orginal owner of the land/building/apartment leases the same to the second party, when levying the property taxes on the second party for the designated period, an amount of rental fees obtained from the third party which is inclusive of the rental fees which has to be paid from the first owner after deducting the relevant amount on the balance amount a 13% is levied and collected as per mentioned below according to the period of the contract-
Relieves on;
| (A) | The rental fee paid to the original owner. |
| (B) | 10% on the last balance amount for income tax |
| (C) | 25% on the last balance amount for the cost of renovating the building |
| (D) | 25% on the last balance amount for the cost of general charges |
| (E) | Net Balance = Monthly Ratable Value (MRV) |
| (F) | Property Tax = 13% of MRV |
The property taxes which are levied by the Committee (YCDC) shall be collected from the owner of the land/ building/ apartment in the contract between both parties concerned and is hereby mentioned that the person leasing the same will pay all the taxes that are levied accordingly, it is hereby understood that all taxes will be collected as per agreed upon accordingly.
Requirements to levy the Property Tax are as follows:
| (A) | Original/Copy of the leased contract of the land/ buildings/ apartments(Original leased contract, second party agreement) |
| (B) | Original/ Copy of the National Registration Card (NRC) of the taxer |
| (C) | Designated application form to levy taxes (To be filled in the respective department concerned) |
| (D) | Original/ Copy of the tax receipt if already paid. |
Levying of taxes on Factories/Workshops
Taxes are levied on factories /workshops once every financial year accordingly as per mentioned below-
| i. | Annual Value of land | = 3% of land value |
| ii. | Annual Value of Building | = 6% of Building value |
| iii. | Annual Value of Machine | = 6% of Machine Value |
| iv. | Total Annual Value | = AV of land + AV of building + AV of Machine |
| Property Tax for per year | = 13% of Total Annual Value |
One square feet rating for land and building are designated as follow;
| Value per square feet of land | = 1000 MMK | |
| Value per square feet of building | = 700 MMK |
To levy property taxes the requirements are as follows:
| (A) | Copy of the National Registration Card (NRC) of the Taxer |
| (B) | To hereby calculate the amount of the property taxes which is to be levied on the total measurement of the land area/ the type of building structure/ the levels (or) storeys of the building/ type and value of the machinery equipment such as all the necessary information should be filled up into the application form as designated by the department accordingly |
| (C) | Original/ Copy of the agreement pertaining to the ownership of the land/building. |
| (D) | Copy of Licenses (enterprise) issued by YCDC |
| (E) | If it is a company, a copy of the Company Registration |
| (F) | Copy of form VI, XXVI |
| (G) | If the said land area is hereby leased, an original/copy of the rental contract |
Levying of property taxes on Ordinary/Normal buildings
As for ordinary/normal buildings, Government buildings in accordance with its Townships/ type of roads/streets and type of buildings, as designated by the Committee property taxes are levied as mentioned below; 3% of the value of the land and 6% of the value of the building is monthly calculated and designated on that monthly calculated amount a 13% of its hereby levied and collected as taxes accordingly. For private enterprises, taxes are collected once in every 6 months and as for Government owned buildings, taxes are collected once in every year accordingly.
Values per square feet of land (kyat)
| Township Class | Main Road | Wide Road |
| First Class | 1,000 MMK | 800 MMK |
| Second Class | 600 MMK | 400 MMK |
Values per square feet of building (Kyat)
| Township Class | RC/street structure | Brick-nogging | Timber | Bamboo/Straw |
| First Class | 700 MMK | 600 MMK | 400 MMK | 200 MMK |
| Second Class | 600 MMK | 400 MMK | 200 MMK | 100 MMK |
The rules and negotiations for levying and calculation of property taxes as mentioned below;
Classification of Townships
| A. | (1) First Class Townships (23) Townships - Pazundaung Township, Botahtaung Township, Kyauktada Township, Pabedan Township, Latha Township, Lanmadaw Township, Dagon Township, Ahlone Township, Mingala Taung Nyunt Township, Sanchaung Township, Kamayut Township, Bahan Township,Tamwe Township,Yankin Township, Mayangone Township, Hlaing Township, Kyeemyindine Township, South Okkalapa Township, North Okkalapa Township, Thingangyun Township, Tharketa Township, Insein Township and Dawbon Township. | |
| (2) Second Class Townships (9) Townships - Shwepyitha Township, Hlaingthayar Township, Mingaladon Township, Dagon (South) Township, Dagon (North) Township, Dagon (East) Township, Dagon (Port) seikkan Township, Dala Township and Seik Kyi Kha Naung Toe Township. | ||
| B. | Taxes should be levied and calculated to the least for buildings which are 625 square feet and if the building is smaller/narrow than 625 square feet, taxes should be levied and calculated on 625 square feet. If it is more than 625 square feet, the exact measurement should be calculated and taxes should be levied accordingly. | |
| C. | If the house is a high-rise building according to each level/floor, the higher the level and floor based on ground floor, after a reduction of 20% of the cost of value of the said building up to the 5th level /floor, taxes should be levied accordingly. From the 5th level /floor and above, for the higher levels/ floors rates for taxes should be levied equally as the same as the 5th level /floor. | |
| D. | When levying taxes on high-rise buildings, which are built elevators, the value of the whole building by adding the ground floor should be calculated accordingly. | |
| E. | As for half-storeyed buildings, the assessment value for this type of half-storeyed buildings should be set by assessing the value for them, the assessment value for these type of buildings should be set as 50%. | |
| F. | For each level/floor/ that has sub-rooms, assessment value each of its floors/levels should be set according to its measurement of the width/breadth of the room accordingly. | |
| G. | The value of the land should be set and levied according to the wideness and broadness of the existing total area. | |
| H. | Before levying taxes on sub rooms for high-rise buildings having an area of 625 square feet a rental fee as classified by in the first class Townships a sum of 2,000MMK as classified for second class Townships a sum of 1,000MMK should be added on and calculated accordingly. | |
| I. | For all types of buildings that are built for only the purpose of business matters, when property taxes are levied without dividing or classifying the types of Townships or roads/streets up to the most one square feet rates should be calculated and hereby levied accordingly. | |
| Note: As for Government buildings, offices Government owned properties, which are being used for the purpose of departmental use and etc… basically general tax of 8% should be levied with a 5% for lighting tax, apart from it, for Townships which are situated in the down-town areas only 8.5% for garbage/rubbish taxes should be collected and hereby levied accordingly.The remaining townships are levied at 6.5%. | ||
Requirements for levying property taxes and private properties/possessions
Requirements for levying property taxes for respective Government Departments
Levying and collecting property taxes for Warehouses/Stores
When property taxes are being calculated and levied on Bayint Naung warehouse, economic zones, for one square feet of land a 3% rate is calculated, for one square feet of building 6% rate is calculated on every month after assessing and calculating the value, on the same value of the assessment, general tax is 8%, lighting tax is 5%, a total of 13% is levied as property taxes.
The valuation rates hereby used for calculating taxes for Bayintnaung warehouse/ economic zones which are being used according to its land/buildings is as mentioned below:
| a. Land | 1 square feet | valuation rates | 800 MMK |
| b. Brick buildings | 1 square feet | valuation rates | 700 MMK |
| c. Brick nogging | 1 square feet | valuation rates | 600 MMK |
Levying and collecting of property taxes on private owned business buildings according to its respective Townships
1. First Class Townships (21) Townships such as Kyauktada Township, Pabedan Township, Lanmadaw Township, Latha Township, Dagon Township, Kamayut Township, Bahan Township, Ahlon Township, Kyimyindaing Township, Sanchaung Township, Botahtaung Township, Pazundaung Township, Mingalar Taung Nyunt Township, Tharketa Township, Thingangyun To wnship, South Okkalapa Township, Tarmwe Township, Yankin Township, Insein Township, Mayangone Township, Hlaing Towns hip.
Second Class Townships (7) Townships such as North Okkalapa Township, Dawbon Township, Mingalardon Township, Shwepyitha Township, Hlaingthayar (East) Township, Dagon (South) Township, Dagon (North) Township.
Third Class Townships (5) Townships such as Dagon (East) Township, Dagon (Port) Township, Hlaingthayar (West) Township, Dala Township and Seikkyikanaungtoe Township.
2.Designation of Type of Road
| (a) | Main Road: Main Roads (or) connecting townships to township roads |
| (b) | Wide Road: Wide streets in the townships or connecting quarter to quarterroads in the township. |
| (c) | Other Road: Neither main roads nor wide roads (or) street, lane and one-side closed road, etc. |
3.Identifying and dividing the types/batches of business enterprises
| (a) | First Batch: Big business enterprises |
| (b) | Second Batch: Medium business enterprises |
| (c) | 25% on the last balance amount for the cost of general charges |
| (d) | Separate batches: According to the respective Townships concerned the highest rates of which property taxes should be levied as specifically must be within the same level/grade especially of businesses that are being undertaken on spacious land space and vast building space |
4.Designation of one square feet rates and values of Businesses on the Main Road
| Township class | Business Group | |||||
| Land | Building | |||||
| Business | 1st Class(MMK) | 2nd Class(MMK) | 3rd Class(MMK) | 1st Class(MMK) | 2nd Class(MMK) | 3rd Class(MMK) |
| 1st Class Townships | 15 | 13 | 10 | 30 | 26 | 20 |
| 2nd Class Townships | 13 | 11 | 8 | 26 | 22 | 16 |
| 3rd Class Townships | 11 | 9 | 6 | 22 | 18 | 12 |
| 5. | Calculation Systems for Property Tax | |
| (a) | Land area (sqft) x rate = Land Value (M.R.V) | |
| (b) | Building area (Sqft) x rate = Building Value (M.R.V) | |
| (c) | Total M.R.V = Land Value + Building Value | |
| (d) | Fair Ratable Value = Whole Number of M.R.V | |
| (e) | Property Tax for one month = Ratable Value x 13% (General + Lighting) | |
Note
| 1. | As specified by the Union Government in accordance with the financial budget year and period of every financial year for each budget year taxes should be calculated and levied. | |
| 2. | If the business enterprises is located on wide roads rates should be collected as the same for main roads after calculating the MRV, a reduction of 20% on the MRV value should be levied and collected. | |
| 3. | If the business enterprises is located on a different type of roads, rates should be collected the same as the main roads, after calculating the MRV a reduction of 40% on the MRV value should be levied and collected accordingly. |
To levy and collect property taxes the documents mentioned below are required
The original and copy of the business enterprise licenses issued by the Township YCDC office along with the recently paid tax receipts. (Only when it is new tax)
The original and copy of the documents proving ownership and possession of land/ building apartment.
Original and copy of the National Registration Card NRC of the taxer.
Original and copy to the Family List of the taxer.
Specified Application forms to be filled out for payment/levying of property taxes.
Levying of Property taxes on Myanmar Port Authorities
Regarding levying property taxes on Myanmar Port Authorities which are within the city limits/areas each year for all types of revenue respectively received a 5% of which is said to be the same equal amount is hereby levied as property taxes and collected accordingly.
Levying and collecting property taxes in Foreign currency
In levying and collection property taxes in foreign currencies it depends on how it is placed and for what it is used for according to its relevant type of enterprises or businesses as calculated and levied according to its rates in Myanmar Kyat currencies, according to the date of which the taxes are made payment of in foreign currencies for the revenue in accordance with the official exchange rates issued by the Yangon City Bank (YCB). The rates hereby differ, but in accordance with the exchange of currency purchase rates for each 1US$ into Myanmar Kyat currency on these rates the property taxes will be levied and collected accordingly.
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