Income Tax Exemption

Myanmar Special Economic Zone Law 2014 Myanmar Investment Law 2016
 For Investor
 In Free Zone Zone
 (1) The Least- developed Regions and States- 7 years
 7 years exemption
 50% relief for next 5 years
ZoneThe moderately developed Regions
 50% for next 5 years if profit reinvested within 1 year
(2)
 In Promotion Zone and States - 5 years
 5 years exemption
 50% relief for next 5 years ZoneThe adequately developed Regions
 50% for next 5 year if profit reinvested within 1 year (3)
and States - 3 years
 In Promotion Zone and Other Businesses in SEZ

 income tax exemption for the first Five years from the commencement

of commercial operation
 For Developer
 8 years exemption
 50% relief for next 5 years
 50% for next 5 year if profit reinvested within 1 year
 Exemption of Customs Duties and other Relevant Taxation
Myanmar Special Economic Zone Law 2014
 For Investor
 In Free Zone
Exemptions of customs duties and other relevant taxation for the import of
raw materials for production, machinery instruments and necessary spare
parts for production; construction materials and motor vehicles for building
factory, warehouse and own office
Exemptions of customs duties and other relevant taxation for the import of
trading goods, consignment goods, motor vehicles and other materials which
are essential for the business for free - tax wholesale trading, export trading
and services of provision and transportation.
 In Promotion Zone
 5 year exemption on import of raw material, machinery & spare parts,
construction material and motor vehicles for construction purpose
 50% relief for next 5 years
 For Developer
 Exemption on import of the construction materials for the infrastructures
and own offices; machine instruments; machinery; motor vehicles for works
and work materials
Myanmar Investment Law 2016
 Exemption on import of machineries, equipments,
instruments, machinery components, spare parts,
construction materials unavailable locally, and materials
used in the business
 Exemption on the importation of the raw materials and
partially manufactured goods conducted by an export-
oriented business for the purposes of the manufacture of
products for export
 reimbursement of customs duty or other internal taxes or
both on imported raw materials and partially manufactured
goods which are used to manufacture products for export
 Exemption on machineries, equipments, instruments,
machinery components, spare parts, materials used in the
business, and construction materials unavailable locally for
expended investment
 Other Exemptions and Reliefs

Myanmar Special Economic Zone Law 2014 (Commercial

Tax) Myanmar Investment Law 2016
 For Investor
 In Free Zone  Income Tax Exemption on the profit obtained from business
reinvested in the business within 1 year
 exemptions of commercial tax or value-added tax.
 Right to deduct expenses for the research and development
 may apply the exemption for import tax or value-added tax
for the goods imported from the local or Promotion Zone  Right to pay income tax on the income of foreigners as the
to the Free Zone. citizens
 In Promotion Zone
 exemptions and relief of the commercial tax and value-
added tax during the period of relief provided in the SEZ
Law.
 In SEZ
may apply for the exemption of commercial tax or value-added
tax for manufactured goods which will be exported
 Right to Use Land

Myanmar Special Economic Zone Law 2014 Myanmar Investment Law 2016

 For Investor and Developer  For Investor ( Citizen and Foreign)

 Land Lease up to 50 years + renewal of 25 years upon the  the right to obtain a long-term lease of land or building from
Management Committee approval the private owned or from the relevant government
departments, governmental organizations managed by the
 Shall rent out the land, permit the land use and sell,
Government, or owned by the State (Citizen investors may
mortgage, rent, exchange or give the buildings upon
invest in their own land or building)
Management Committee approval
 Foreign investor may lease land or building either from the
Government or governmental organizations or from owners
of private land or building – Extension 10 years (2 times)
 Employment Requirements

Myanmar Special Economic Zone Law 2014 Myanmar Investment Law 2016

 Investor must employ skilled Myanmar employees at least  may appoint of any citizen for senior manager, technical and
operational expert, or advisor
 25% within 2 years
 shall appoint only citizens for unskilled works
 50% within 4 years
 75% within 6 years
 Investor must employ 100% unskilled Myanmar
employees.
 Protection

Myanmar Special Economic Zone Law 2014 Myanmar Investment Law 2016

 Non Nationalization during the investment permit term  The Government guarantees not to nationalize any
investment in accordance with Law
 No restriction and control on the price of products, services
or exported goods manufactured in free zones or
promotion zones