Cambodia and Myanmar Sign DTA to Enhance Tax Certainty and Facilitate Criss-border Trade and Investment
On 11 September 2026, Cambodia’s General Department of Taxation announced that Cambodia and Myanmar had signed a double taxation agreement (“DTA“) in Phnom Penh. The DTA is designed to prevent income from being taxed twice, give businesses greater certainty, and encourage trade and investment between the two countries. It also sets out how taxing rights are shared, provides for administrative cooperation and information exchange, and includes measures to counter tax evasion and avoidance.
The DTA is not yet in force. It will only take effect once both countries have completed their respective ratification procedures and exchanged the necessary instruments and notifications.
The signing expands both countries’ networks. The agreement makes Myanmar Cambodia’s ninth Association of Southeast Asian Nations (“ASEAN“) treaty partner and the 14th jurisdiction with which Cambodia has concluded a DTA. For Myanmar, it is the country’s 12th signed tax treaty, of which eight are currently in force, and its seventh with an ASEAN member state, of which five are in force. It is only the second new DTA that Myanmar has concluded in recent years, following its agreement with Belarus, which takes effect in Myanmar from 1 April 2027. Once operational, the treaty is expected to reduce double taxation, support cross-border investment, and may lower withholding tax rates on certain cross-border payments, depending on the final provisions.
New IRD Guidance on Real Estate Tax Obligations: Registration, Valuation and Documentation Requirements
On 26 August 2026, Myanmar’s Internal Revenue Department (“IRD“) issued a new guidance on tax obligations for real estate transactions, following an earlier 2024 issuance. The guidance covers the purchase, transfer, exchange, gift, inheritance and court-ordered transfer of real estate. It requires sellers of land, buildings, apartments and other capital assets to comply with capital gains tax (“CGT“) rules, while buyers must substantiate the source of funds used to acquire the property.
A key feature of the guidance is the requirement for ownership to be transferred through formal legal registration rather than informal arrangements, such as private agreements or powers of attorney. Before registration, the market value of the property (other than agricultural land) must be assessed by the relevant Property Value Assessment Committee. The assessed value forms the basis for income tax, CGT and stamp duty. Valuation is typically completed within two weeks if the documents are in order.
The guidance sets out documentation requirements varying by transaction type. Commonly required documents include National Registration Card (“NRCs“), household registration documents, land ownership documents, sale and purchase agreements, and company registration documents for corporate purchasers. Buyers who cannot substantiate their source of funds may face income tax on the unsubstantiated amount at rates ranging from 3% to 30%, while sellers may be subject to CGT at 10% of the gain where the value of capital assets transferred in a financial year exceed MMK10 million. Transfers also attract stamp duty and additional stamp duty totaling 4% of the assessed value. Property valuations are valid for one year from issuance.
MIC Issues New Procedures for Region and State Investment Businesses
On 19 August 2026, the Myanmar Investment Commission (“MIC“) issued Notification No. 5/2026, setting out new Procedures for the Scrutiny of Investment Businesses Undertaken within a Region or State (“2026 Notification“), replacing and repealing Notification No. 26/2021.
A key feature of the 2026 Notification is the introduction of a new defined term, “Applicant,” covering an investor, an authorised representative of an investor, or a subsidiary company involved in the investment. The 2026 Notification also adds a dedicated chapter empowering Region or State Committees to approve amendments to Endorsement terms directly, except for matters such as employment approvals, tax exemptions or reliefs, extensions of construction periods on more than two occasions, transfers of majority ownership or control, transfers of more than 50% of an investor’s assets, and use of restricted or prohibited raw materials, all of which must still be referred to MIC.
The framework introduces clearer rules on suspension and termination, including a one-year cap on suspension periods, a requirement for evidence of continued wage payments during suspension, and repayment of tax benefits previously granted in termination cases. Committees may now approve capacity or scale expansions within the permitted investment threshold, while expansions exceeding that threshold must still be forwarded to MIC. Applicants must be notified of rejections, with reasons, within five working days. Land rights authorisation documents have been streamlined, and the Investment Monitoring Team’s inspection cycle has been reduced from three stages to two.
Separately, MIC issued Notification No. 4/2026 on the same date, revoking Standard Criteria No. 1/2020, which had previously applied to Region or State Investment Committees when scrutinising, accepting, and approving endorsement applications.
Myanmar Introduces Mandatory Mobile Phone Registration for Travellers Entering the Country
Myanmar has introduced a mandatory registration system for mobile phones brought into the country, known as the Central Equipment Identity Register (“CEIR“). The requirements apply to travelers arriving through Yangon, Nay Pyi Taw, or Mandalay International Airport with an unregistered phone. Up to two devices are permitted per trip, including the phone currently in use.
A key feature of the system is the requirement to declare unregistered phones at the airport customs counter by completing a Passenger Declaration Form (“PD Form“) and providing the International Mobile Equipment Identity (“IMEI”) number of each device. Travelers must then submit a formal registration application to the CEIR One-Stop Service (OSS) Team, together with a completed CEIR Registration Application Form, copies of their passport photo and arrival stamp pages, their boarding pass, and the original PD Form.
The framework provides a 30-day window from the date of the PD Form declaration for travellers to submit their application and pay any applicable taxes, with penalties for late submission. Each passenger may register a maximum of two mobile phones within one year from the date of their first PD Form declaration.
New Export and Import Compliance Procedures: Unified Penalty Framework and Stricter Rules on Shipment Timing
On 6 July 2026, Myanmar’s Ministry of Finance and Revenue issued new Export and Import Compliance Procedures (“Procedures“), replacing notifications in place since 2017. The Procedures introduce a unified penalty schedule with commodity-specific fines and stricter consequences for timing violations, creating direct financial and confiscation risk for in-transit shipments.
The consolidated framework repeals four earlier notifications and sets out specific fine rates for specific violations. Unlicensed imports carry consequences based on goods type, ranging from fines of one, two or three times the assessable value to outright confiscation for categories including commercial vehicles, trailers, cigarettes, vapes, beers and playing cards. Explicit day-by-day penalty bands now apply to timing violations: goods arriving before licence issuance are penalty-free for up to 15 days, with penalties escalating to full confiscation at 61 days or more, while goods arriving after licence expiry are penalty-free for up to seven days, with penalties escalating to full confiscation at 31 days or more. Cut-Make-Pack (“CMP”) goods are exempt for up to 50 days with Valid for Prior Arrival (“VPA“) clearance, and aircraft spare parts with VPA clearance are fully exempt.
Key Watch Points for Exporters
A tiered fine structure applies to export discrepancies. CMP goods mislabelled as anything other than “Made in Myanmar” attract a lower fine than general goods with an origin mismatch. Excess-quantity exports carry a fine and require a revised licence before export, while exporting without any documentation results in confiscation of the entire shipment, with no redemption option.
Key Watch Points for Importers
Missing brand name or country of origin information results in confiscation for vehicles and machinery and a fine for general goods, with penalties waived where the missing information can be verified from supporting documents. Penalties for manufacturing year violations are graduated according to the nature of the mismatch, with a manufacturing year significantly below the permitted cut-off resulting in confiscation. Brand and trademark mismatches carry fines, while Electric Vehicle (“EV“) battery capacity or motor power mismatches carry a monetary fine, subject to a tolerance of +/- 3%. Declaring used or reconditioned goods as brand-new results in confiscation for vehicles and machinery, and a fine for general goods.
Where goods are subject to confiscation, an application for redemption against payment of a fine may be made to the Customs Department, except for prohibited goods. Formal appeals may be made under the Sea Customs Act or the Tax Appellate Tribunal Law.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice