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Compliance Training for Non-Financial Professionals in Myanmar: A Guide to Audit and Compliance Requirements

As Myanmar continues to open up to foreign investment, it’s essential for non-financial professionals to understand the audit and compliance requirements set by the government. In this guide, we’ll cover the key requirements and regulations that businesses must comply with.

Assessment Systems in Myanmar

Myanmar operates two assessment systems: the self-assessment system (SAS) and the official assessment system (OAS). Companies are required to submit audited financial statements to the Directorate of Investment and Company Administration (DICA) and the Internal Revenue Department (IRD).

Key Legislation and Regulations

The main legislation governing audit and compliance requirements for businesses in Myanmar is the:

  • Myanmar Companies Law of 2017
  • Myanmar Accountancy Council Law

Foreign investors should seek the services of registered local advisors to ensure they stay compliant with these regulations.

Self-Assessment System (SAS)

Under the SAS, companies are not required to submit audited financial statements to the IRD. However, those under the OAS must submit their statements to DICA and the IRD.

  • Exemptions: Small companies with less than 30 employees and revenue of less than 50 million kyat (US$37,000) do not need to submit their financial statements to DICA.

Annual General Meetings (AGMs)

Companies are required to hold their first AGM no later than 18 months from incorporation. The annual return must be filed within 21 days of the AGM, which includes information such as:

  • List of directors
  • Capital structure
  • Shareholder information

Financial Year and Tax Filings

The financial year in Myanmar runs from October 1 to September 30. Companies are required to file corporate income tax returns and audited financial statements to the IRD.

  • Auditor Appointment: Companies must appoint an auditor by their directors, who must present the audited financial statements at each AGM.
  • Certification: Auditors must hold a certificate from an authorized body entitling them to act as an auditor for companies.

Penalties for Non-Compliance

Penalties apply for non-compliance, including:

  • Fines of five percent of the tax due
  • An additional one percent for each month
  • A fixed fine of 100,000 kyat (US$74)

Companies must also file annual returns with DICA within two months of incorporation, and at least once annually after. The deadline is electronic reminders from DICA.

Conclusion

Compliance training is essential for non-financial professionals in Myanmar to ensure they meet the audit and compliance requirements set by the government. Foreign investors should seek professional advice to navigate these regulations and avoid penalties.