In order to address tax evasion by healthcare professionals, Ministry of Planning and Finance has issued a directive that income tax be collected in advance from doctors and healthcare providers who provide medical services in private hospitals.
From September 1, doctors and healthcare providers who provide fee for service treatment at private hospitals will be required to deduct 2% advance income tax from their collections.
This deduction must take place at the time of settlement of fees. The funds collected on behalf of Inland Revenue by the medical establishment (hospital, clinic, etc) must be forwarded to relevant township office within 15 days and deposited into the bank account of the Tax Office.
In the case of salary income paid monthly to healthcare providers appointed as permanent employees in private health enterprises, the person responsible for disbursing the money shall proceed according to the method of income tax under the title of salary without the need to withhold and submit the income tax withheld from the source.
Healthcare services in Myanmar are ranked 190th out of the total of 200 countries in the world by World Health Organisation.