| 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 The Republic of the Union 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 The Republic 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.
|
|
| |
The Republic of the Union of 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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