On 10 October 2017 the Myanmar Investment Commission (“MIC”) issued Notification No. 84/2017, announcing that it has expanded the criteria of Myanmar entities which qualify for MIC endorsement benefits under the Myanmar Investment Law.
MIC endorsement benefits are now being extended to 1) existing companies which have not previously sought MIC benefits and 2) companies holding MIC endorsement approval that did not previously seek importation tax exemptions. While the full scope of the entities covered was not specified in the announcement, the MIC has indicated that the intended beneficiaries are those entities that have already established operations, with at least USD 150,000 in registered capital.
This marks a significant revision in government policy. Before the Notification, existing DICA companies were not entitled to seek these MIC endorsement benefits. These benefits had initially been implemented with the goal of attracting new investment into Myanmar. Now, by virtue of this new Notification, existing companies may apply for MIC endorsement benefits. Generally, endorsement benefits include allowing foreign-held companies to obtain long-term lease rights, which had otherwise not been previously available to them. On a case-by-case basis, the MIC will consider the merits of the investment and determine whether it is indeed eligible to receive endorsement benefits.
More specifically, the Notification provides for tax exemptions and reimbursements from customs duties on the importation of raw materials and partially manufactured goods that are imported for the purpose of manufacturing products to be exported.
The Notification provides further exemptions and reimbursements from customs duty or taxes on the importation of the following:
- machinery;
- equipment;
- instruments;
- machinery components;
- spare parts;
- materials used in the business; and
- construction materials unavailable locally.
This Notification emphasizes Myanmar’s ongoing commitment to incentivizing investment, and rewarding enterprises that are actively engaged in Myanmar.
The information provided in this email 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.
DFDL Contact:
William D. Greenlee, Jr.
Partner; Managing Director, Myanmar
william.greenlee@dfdl.com
