Effective 16 March 2026, the Myanmar Investment Commission (“MIC“) has issued two significant updates for foreign investors in Myanmar: the acceptance of Chinese Yuan (CNY) as an additional foreign investment currency alongside United States Dollars (USD), and the introduction of minimum eligibility criteria for investors seeking tax exemption or relief in promoted sectors. Investors are encouraged to review these developments and assess their impact on current or planned investments in Myanmar.
Key Developments
Acceptance of CNY for Investment Capital
The MIC has announced that foreign capital submitted for investment, together with proposals and endorsement applications, may now be denominated in either United States Dollars (USD) or Chinese Yuan (CNY).
Currency-Specific Transfer and Payment Rules
Investors should note that the currency in which foreign capital is brought into Myanmar will determine the currency in which it may be transferred and paid: capital brought in USD may be transferred and paid in USD, while capital brought in CNY may be transferred and paid in CNY. In both cases, transfers and payments must be conducted through banks holding an Authorized Dealer (AD) license for foreign exchange transactions.
Minimum Criteria for Tax Exemption or Relief
Pursuant to MIC Notification No. 1/2026, issued on 16 March 2026, investors seeking tax exemption or relief for investment businesses in a promoted sector must satisfy at least the following minimum criteria:
| Criteria | Requirement |
|---|---|
| Minimum cash contribution | At least 35% of the total investment amount stated in the proposal and endorsement application must be contributed in cash |
| Foreign loan documentation | Where the investment is to be carried out with foreign loans, the investor must submit: (i) the loan approval letter from the Central Bank of Myanmar, including the loan repayment schedule; and (ii) evidence that the foreign loan and foreign capital have been remitted in cash through a bank holding an AD license for foreign exchange transactions |
These criteria are subject to revision or adjustment in accordance with State policy requirements.
Implications for Investors
This development is noteworthy for several reasons:
- Greater flexibility for Chinese investors and joint venture partners: Investors whose capital is denominated in CNY may now invest directly without the need to convert to USD prior to remittance, potentially reducing conversion costs and exchange rate exposure.
- Compliance requirements remain: Regardless of the chosen currency, all remittances must pass through an AD-licensed bank. Investors should ensure their banking arrangements are in order before proceeding.
- Tax exemption eligibility: Investors seeking tax incentives in promoted sectors should review whether they meet the updated minimum criteria, particularly the 35% cash contribution threshold and the documentary requirements for foreign-loan-funded investments.
- Policy flexibility: The MIC has reserved the right to revise or adjust these criteria in line with evolving State policy, and investors should monitor future notifications accordingly.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
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