Myanmar

4 Chapter Accounting

• Chapter

  •  1 Chapter Basic Knowledge

    1.1 Basic Knowledge

    1.2 Reference

     2 Chapter Incorporation

    2.1 Characteristics of business base

    2.2 Establish a business base

    2.3 Company liquidation and withdrawal

    2.4 References

     3 Chapter M&A

    3.1 M&A trend in Myanmar

    3.2 Law and Regulation on M&A

     4 Chapter Accounting

    4.1 Accounting systems

    4.2 Accounting standards [MAS]

    4.3 Disclosure systems

    4.4 Audit systems

     5 Chapter Tax Laws

    5.1 Overview

    5.2 Tax related to personal income

    5.3 Corporation income

    5.4 Commercial tax

    5.5 Tariff

    5.6 Other national taxes

    5.7 Withholding tax system

     6 Chapter Labor

    6.1 Working Environment

    6.2 Labor Law

    6.3 Social security system

    6.4 Points to keep in mind when Japanese people are resided

• 4.1 Accounting systems

  • Accounting systems

    Accounting systems of Myanmar was prepared and unified in 1988. Based on MACL [Myanmar Accountancy Council Law], MAC [Myanmar Accountancy Council] was established in 1994.

    Accounting systems of Myanmar is instead of displaying the financial condition and appropriate business results, it has a strong aspect as a manual for accounting practice.

    Fiscal year is 12monthes which from April 1 to March 31 in principal. Fiscal year matches the taxable year. The company has to make an accounting book which is recorded the company's activities.
     
• 4.2 Accounting standards [MAS]

  • Accounting standards [MAS]

    Myanmar accounting standards was enacted by MAC in 2003. Currently the accounting standard is almost the same as IFRS.
• 4.3 Disclosure systems

  • Disclosure systems

    Myanmar company law disclosure is regulated by the Myanmar Company Law. Company is obligated to prepare an annual report once a year. According to income tax law, it is required to submit a tax return with financial statements within 3 months after the taxable year’s end date. Financial statements are balance sheet, profit and loss statement, statement of changes in shareholders' equity, cash flow statement, and note table.

    All companies should send the annual financial statements and audit report to all shareholders at least 14 days prior to the annual shareholders meeting. However, the company which have less than 15 shareholders is able to omit those steps. In addition, the company which is established under the foreign investment law has to report by financial statements to MIC in every quarter.
• 4.4 Audit systems

  • Audit systems

    In Myanmar, all companies are obligated to receive an audit of financial statements from certified public accountant. MAPS [Myanmar Auditing Practice Statements], MSRE [Myanmar Standards on Review Engagements], and MSAE [Myanmar Standards on Assurance Engagements] will be enacted.
    Myanmar institute of certified public accountants [MICPA] was enacted under the MAC in 2003. However, there are few MICPA who completed to register. And a lot of them are working in Singapore.
    Auditor role is to guarantee whether financial statements appropriately reflects financial condition or business performance. In order to verify that the financial statements are properly prepared, auditor have the rights to request documents and to ask questions to directors or employees.