Crypto Taxation in Myanmar: A Complete Guide

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bullish:

bearish:

Capital control, a falling kyat and the outflow of banking services since the February 2021 coup are driving the bulk of the Myanmar population and ex-pats into peer-to-peer USDT and BTC rails. Nevertheless, the Central Bank of Myanmar (CBM) continues to declare that digital assets cannot be a legitimate currency and its 2020 and 2024 statements impose a threat to be fined or imprisoned in case of trading.

In the meantime, the Internal Revenue Department (IRD) continues to maintain that the taxpayers should report all types of income, including their crypto gains according to Myanmar income tax and capital gains laws. Therefore, it is important to unscramble the possible operations of crypto in this older and fiat move tax code and how traders, miners and freelancers in Myanmar and beyond Myanmar will operate.

Tax Authorities & Regulations

Office charged with the generation of primary taxes: Internal Revenue Department (IRD) of the Ministry of Planning & Finance.
Key legislation:
- Income Tax Law (1974, amended 2019)—covers salaries, business profits, and “other income.”
- Capital-Gains Tax Law (2015)—10% flat rate on gains from disposal of capital assets, including crypto.
- Tax Administration Law (2019)—six-year audit window (12 years for fraud).
- CBM Notification 9/2020 and Public Notice 24 May 2024—declare crypto trades illegal but do not amend tax statutes.
Classification: In practice, the IRD treats cryptocurrency as an intangible capital asset (similar to shares). Profits therefore fall under capital gains or “other income,” not foreign exchange or commodity rules.

Types of Crypto Taxes in Myanmar

Capital Gains Tax (CGT)—10% on net profit when crypto is sold or exchanged for fiat or another asset.
Income Tax—Progressive 1%–25% on crypto earned from:
- Mining rewards
- Staking/yield incentives
- Airdrops or hard-fork distributions
- Wages, consulting fees, or merchant payments in crypto
Commercial Tax (CT)—Myanmar’s 5% CT (analogous to VAT) may apply when crypto directly purchases goods/services, but no specific crypto CT rules exist yet.
Other levies— No wealth, gift, or inheritance taxes are crypto-specific.

Tax Rates & Brackets

CGT: Flat 10% for individuals and companies.
Personal income tax: Progressive 1%–25% on aggregated income (including crypto).
Corporate income on crypto trading desks: Standard 25%.
Exemptions/reliefs:
- Salary income ≤ MMK 4.8 million/year tax-free threshold still applies.
- De minimis disposal rule absent—every crypto gain is reportable.
- Loss carry-forward was allowed for business taxpayers (three years), not for individuals.

Crypto Transactions & Tax Treatment

Buy-and-hold: Purchasing crypto with kyat or foreign currency is not taxable until disposal.
Selling or spending crypto: Realizes CGT on the difference between sale price and cost basis.
Mining & staking: The Market value of coins on the day received is ordinary income; later sale triggers CGT on additional appreciation.
Salary / contractor payments: Employer converts coin value to kyat on payroll date and withholds Paye.
Crypto-to-crypto swaps: Treated as two disposals; each leg valued in kyat at the Myanmar reference market rate.
DeFi lending & yield farming: Token incentives are income; redeemed interest counts as CGT.
NFT mints & trades: Creators owe income tax on primary sale; collectors pay CGT on resale gains.

Crypto Tax Reporting & Compliance

The crypto gain is reported on Form IT1 (salaried) or IT2 (business) within 30 June after the tax year. The annual corporate return is accompanied by a Schedule CG-Crypto attached to it by companies. The evidence required is wallet addresses, exchange statements, transaction hashes, and kyat conversions made.

The IRD suggests that one should maintain records within a period of seven years. Delays in filing are charged a 10% surcharge and interest, and failure to disclose can be followed by fines up to 150% of the unpaid tax and prosecution in accordance with the Tax Administration Law.

Tax Deductions & Exemptions

Direct crypto-related expenses such as electricity expenses to power mining rigs, cloud-server rentals, exchange fees, and professional advisory expenses can be deducted against crypto income by business taxpayers. The cost of hardware wallets and VPN subscriptions that are exclusively used to personal invest cannot be deductible.

Losses to trade in one coin can be used to offset profit in other coins in the same year; surplus business losses can be carried to the next three years. Losses can only be used by individual investors within the tax year—any losses not used during the tax year are lost and therefore it is important to time disposals properly.

Enforcement & Penalties for Non-Compliance

The IRD works together with the CBM, telecom operators, and police anti-money-laundering units in tracing digital-asset flows. Transfers of large amounts of kyats that have been marked as suspicious by banks/mobile-money apps are vetted and CBM can freeze the accounts associated with them until an investigation is made.

Blockchain-analytics software (procured in 2024 from a regional RegTech vendor) clusters wallet addresses and cross-references Facebook/Telegram OTC adverts to real-name users. Exchanges servicing Myanmar IPs are periodically asked for KYC files under double-tax-treaty exchange-of-information powers.

Penalties:

Administrative: 10% – 150% of understated tax plus monthly interest.
Criminal: Knowingly concealing crypto income ≥ MMK 50 million can lead to up to 3 years’ imprisonment under the Anti-Money-Laundering Law.
Regulatory: CBM may close domestic bank accounts and blacklist national registration cards, limiting future financial access.

Timely voluntary disclosure before an audit usually reduces fines by two-thirds and averts criminal charges.

Future of Crypto Taxation

A draft Virtual-Asset Service Provider Bill—circulated informally in early 2025—would introduce licensing fees, mandatory transaction reporting, and withholding tax on large OTC swaps. While the junta-controlled CBM leans toward stricter enforcement, opposition groups lobby for a sandbox regime once political conditions stabilize. Either outcome will likely formalize crypto tax treatment and could offer reduced CGT for start-ups that register in Myanmar’s new Special Economic Zones.

Conclusion

Myanmar taxes crypto within its long-standing income and capital gains framework: 1%–25% on earnings and 10% on realized gains. Every disposal, swap, reward, or crypto-denominated payment is potentially taxable, and the IRD now wields blockchain forensics to catch non-filers. Keep meticulous records, apply the correct kyat conversion, and set aside cash for the April-June filing season. Given the fluid legal environment—and severe CBM sanctions—consult a Myanmar-qualified tax adviser before executing large trades or mining projects.