As the financial market in Myanmar tries to reform from a collateral-based loan to credit-based system, having a GAAP accounting system to monitor the company’s financial position and performance becomes vital for any business at all stages of development. Not only does it help business owners make informed decisions, it also helps businesses build credibility and communicate effectively with shareholders, investors, and regulators.
SMEs especially should keep their book keeping and financial statements up to date with accurate data and proper accounting standards from inception. This is especially relevant in times like this.
The Myanmar government announced last month, March 2020 an initial stimulus package of approximately 70 million USD to alleviate the impact of COVID-19 on local businesses and the economy at large. On 29 March 2020, one of FocusCore’s clients tasked our team to provide a turnkey service for COVID-19 Fund application. The loan application was submitted on 1 April 2020 and was approved by Myanmar Government on 8 April 2020. Our client was awarded with a 12 month loan at 1% per annum.
“We took the decision to outsource our accounting and finance department to FocusCore since we incorporated in 2015, which means our accounts are kept to a high standard. With their professional guidance, we always file our taxes on-time with the respective tax office in Yangon. This certainly helped with the loan approval process.” said the SME owner after receiving the approval notice from DICA.
When businesses follow correct accounting standards and practices, applying for stimulus packages from their respective Government in a time of crisis becomes much easier. Businesses that interpret their results using informal accounting practices and failing to file taxes on time or not filing at all will be at a disadvantage in the long term.
The Government also announced easing deadlines for tax payments for Myanmar-owned businesses that have been hit by the global pandemic. Qualifying businesses now have until the end of September to make their quarterly corporate income tax and monthly commercial tax payments.
Corporate Income Tax can now be made at the end of the current fiscal period ending 30 September.
The deadline for monthly commercial tax payment has also been extended to 30 September.
Businesses will be exempt from paying 2 percent advance income tax on exports until the end of the current fiscal period ending 30 September.
Since 2014, FocusCore has been advising companies in Myanmar for compliance, accounting and legal services. We strive to take the corporate administration load off operational staff, so they can do what they do best and focus on their core business. Contact us today to discuss how you can streamline your business performance and build a better business for tomorrow.