Tax incentives in Asia-Pacific

Myanmar

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With the transition of a new government in August 2011, Myanmar has been undergoing a series of political, social, and economic reforms. In October 2016, the Myanmar Investment Law (MIL) was introduced to replace the Myanmar Foreign Investment Law and the Myanmar Citizens Investment Law to be in line with the ASEAN guideline and international practice, which do not grant exemption and relief to some industries such as those producing alcohol and cigarettes etc.

Myanmar is the world’s fastest-growing economy and last frontier of investment. The government of Myanmar has been making efforts to make doing business in Myanmar easier. Political and economic reforms, which have made headlines around the world, have supported this economic growth. Increased consumer and investor confidence, and rising exports, have boosted the economy. As the government is making effort to have doing business in Myanmar easier, Myanmar is expected to continue to be a growth hot spot for foreign investors going forward.

Incentive categories and administering body

The Myanmar Investment Law provides for a wide range of tax and non-tax incentives for companies. Myanmar Investment Commission issued the notification to classify the location of the investment based on development level to grant the income tax exemption based on such location.

Further incentives may be available for foreign investors carrying on a business in the Special Economic Zones under the Myanmar Special Economic Zone Law.

Incentive administering body

The Myanmar Investment Commission (MIC) and Investment and Company Administration administer various tax and non-tax incentives under the Myanmar Investment Law (MIL).

General application process

A typical engagement process involves the following:

  • Registration to the relevant authorities for the Permit to Trade and the incorporation of a company.
  • Submission of the project proposal to MIC.
  • The MIC permit will be issued and the applicant is required to submit the Application for Permit to Trade and Application for the incorporation of the company.

Incentive Application timeline

Up to two to three months

Incentive administering body

The Central Body administers various incentives for businesses in the Special Economic Zones (SEZ) under the SEZ Law.

General application process

Generally, the process of obtaining the SEZ permit involves the following:

  • The company is required to obtain a land reservation agreement with Myanmar Japan Thilawa Development (MJTD).
  • The company has to enter into a land lease agreement.
  • During the 120-day period, the company is required to fill up the application form (Form 1), furnishing the financial background and data of the investment project to the Central Body for the SEZ permit approval.

Incentive Application timeline

Up to one month

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