CNI News
15 June 2024
When Myanmar nationals went to the Myanmar Embassy in Thailand to carry out documents and other matters, the embassy gave assistance to those who could show evidence of tax payment, the people who are helping in the affairs of migrant workers, told CNI News.
The embassy should not do so, U Aung Kyaw from the Labor Rights Foundation, told CNI News.
" That shouldn't be done at all. Every embassy is responsible to resolve the problems of their citizens. Focusing only on getting money, firstly, Myanmar citizens are asked to pay the tax. The embassy will provide service to other matters only after they can show receipts that they have paid the tax already. This is nothing short of the coercive extortion." he said.
As Myanmar migrant workers in foreign countries, only if they could present tax clearance certificates, could their passports be renewed, stated Myanmar Embassies.
However, recently not only tax clearance certificates but also receipts describing that 23 percent of basic salary have been transferred to the families are being asked.
So, some Myanmar migrant workers are asking the philanthropic organizations for help, U Min Oo, in charge of labor affairs from the Foundation for Education and Development (FED), told CNI News.
" Myanmar migrant workers are asking for help. It would be convenient if the companies that issue compensation or social security fund accepted. They largely accept those with letters of recommendation from the embassy. If the workers who haven't paid tax don't get letters of recommendation, It wil depend on the companies that issue compensation." he said.
2023 Taxation Act of the Union was amended by Sr-Gen Min Aung Hlaing and the provision came into effect from 1st October.
25 percent of basic salary every month or 25 percent of three salaries every three months must be transferred into the country through legal channels.
Moreover, income tax must be paid from the salaries of expatriate Myanmar workers depending on foreign currency starting from 1st October.
Income tax from the salaries of expatriate Myanmar workers is beeing calculated and collected in two ways and according to the income tax law, concessions permitted are not deducted and two percent of monthly income in foreign currency must be paid as income tax.
By calculating tax rates according to income strata after deducting concessions permitted under the income tax law, income tax can be paid, stated the Internal Revenue Department.