| 6. |
Tax Incentives under the Foreign Investment
Law |
| i. |
Exemption from income tax for
3 consecutive years beginning with the year in which the operation
commences and a further tax exemption or relief for an appropriate
period in case if its considered beneficial for the State. |
| ii. |
The Commission
may also grant:- |
| |
- |
exemption or relief from income tax on profit
which is reinvested within one year. |
| |
- |
relief from income tax up to 50 percent on the
profit from exports. |
| |
- |
right to pay income tax on behalf of the foreign
employees and to deduct the same from the assessable income
of the enterprise. |
| |
- |
right to pay income tax of the foreign
employees at the rate applicable to the citizens of Myanmar. |
| |
- |
right to accelerate depreciation. |
| |
- |
right to carry forward and set off
losses up to consecutive years, from the year the loss is sustained. |
| |
- |
exemption of relief from customs duty and other
taxes on:-
|
| |
|
| (a) |
imported machinery and equipment for use
during the construction period. |
| (b) |
imported raw materials for the first 3 years
commercial production following the completion of construction. |
|
| 7. |
Application
Procedures for Foreign Investment |
| |
A promoter for foreign investment
must submit a proposal in prescribed form to the Myanmar Investment
Commission for consideration of issuing a permit. With the Proposal
the following must be attached. |
| |
i. |
Documents supporting financial credibility. (audited
final accounts of a most recent year of the person or the firm
that intends to make investment). |
| |
ii. |
Bank recommendation regarding the business standing.
|
| |
iii. |
Detailed calculation relating to the economic
justification of the proposed project indicating inter alia:- |
| |
|
| - |
estimated annual net profit. |
| - |
estimated annual foreign exchange earnings
or savings and foreign exchange requirement for the operation.
|
| - |
recoupment period. |
| - |
prospects of creating employment. |
| - |
prospects of increase in national income. |
| - |
local and foreign market conditions and
the requirement, if any, for local consumption. |
|
| |
iv. |
If it is a hundred percent foreign investment,
a draft contract to be executed with an organization determined
by the Ministry concerned. |
| |
v. |
If it is a joint venture, a draft contract to
be entered into between the foreign investor and local counterpart.
|
| |
vi. |
If it is a joint venture in the form of a limited
company, draft Memorandum and Articles of Association and also
a draft contract between the foreign and local investors. |
| |
vii. |
Other related draft contracts are also to be submitted
together with the proposal. |
| |
viii. |
The promoter may apply for the exemptions and
reliefs from taxes stated in Chapter 10 Section 21 of the Union
of Myanmar Foreign Investment Law. |
| 8. |
Guarantee |
| Right to Transfer Foreign Currency |
| i. |
A person who has brought in foreign
capital can transfer the following:- |
| |
| - |
foreign currency entitlement of him. |
| - |
net profit after deducting all taxes and
provisions. |
| - |
foreign currency permitted for withdrawal
by the Commission which may include the value of assets
on the winding up of business. |
|
| ii. |
A foreign employee can transfer his salary and
lawful income after deducting taxes and other living expenses
incurred domestically |
| Guarantee |
| |
Enterprises operating under the Foreign Investment
Law shall have the State guarantee against nationalization and
expropriation. |
| 9. |
Importing and Exporting
|
| |
An enterprise permitted under the FIL has to be
registered as exporter/importer upon business requirement with
the Export Import Registration Office under the Directorate
of Trade, Ministry of Commerce.
|
| |
The following persons or enterprises can be
registered as exporters/importers:- |
| |
| (a) |
Partnership firms |
| (b) |
Limited companies, inclusive of foreign
companies and branches or joint ventures formed under
the Myanmar Companies Act 1914 on Special Company Act
1950.
|
| (c) |
Co-operative societies, registered under
the Co-operative Society Law 1992.
|
|
| |
Myanmar products can be exported
with the exception of some selected items or restricted items
under the export license. |
| |
All goods which are not prohibited
by the respective Government departments can be imported under
the import license. |
|
|
Our Ministry
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