Withholding Tax Lowers Golds Potential

Source : Myanmar Business Today
View Count : 546
Sep 02, 2019

Myanmar has only allowed gold and jewelry to be exported from the country since September 2018. Since that time, there have only been three occasions where gold was exported. Those three exports combined to generated a grand total of $10,000 according to U Khin Maung Lwin, Deputy Permanent Secretary of the Ministry of Commerce.

“Exporting gold and jewelry is a very small business because of the taxation. We are in talks with the Internal Revenue Department on that issue,” U Khin Maung Lwing said.

Gold exporters must pay a 2 percent withholding tax fee to the Internal Revenue Department for the total volume of export, but they can claim a refund on that amount of when paying their annual tax.

Due to the high withholding tax requirement and low profit margin of gold, there are only three official gold exports in the country, according to U Kyaw Win, President of Myanmar Gold Entrepreneurs Association.

Gold merchants have requested the Internal Revenue Department to relax taxation for gold trades claiming it can increase gold export.

He went on to relate a similar plight for jewelry dealers, “There are only three jewelry exporters to Japan. They too have to pay a 2 percent withholding tax , in spite of the profit margin being less than two percent.”

Gold prices have been going up since the beginning of August, reached K1,242,000 per kyattha (16.6 g) of gold on August 27.

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