It has been confirmed that when the new Myanmar Investment Law is passed, one of the key changes will mean a stop to the benefits currently available for a five-year tax break, but only in terms of how these are allocated – this is really good news for foreign investors. The new law, which will incorporate the Foreign Investment Law and the Myanmar Citizen’s Investment Law, will remove inequality as to the way foreign or local investors are regarded for tax purposes and place both on an equal footing.
Tax exemption will still indeed be available but will be allocated according to the type of business and where it proposes to operate within Myanmar.
These details were recently confirmed by the secretary of the Myanmar Investment Commission, (MIC), Mr U Aung Naing Oo.
This is of course good news for foreign investors and it clearly shows the Government’s wish to raise even further the investment volumes from overseas, entering Myanmar. Not surprisingly, the MIC works hard to promote the interests of the Myanmar population and gain more growth in investment for Myanmar. This has, already, shown a very healthy and impressive recent track record. If you review Bloomberg you will find, amongst others, this headline,
“Foreign Investors Are Starting to Flock to Myanmar Deals”
“Already, approved foreign investment increased 18.4 percent to $9.48 billion in the year ending March 31, 2016, compared to 2015, according to the country’s Directorate of Investment and Company Administration. Myanmar may attract as much as $100 billion in foreign direct investment by 2030 if it spends enough to achieve its economic growth potential, the McKinsey Global Institute reported.” Source Bloomberg.
What further endorsement can we add to encourage you to contact us with all speed to learn how you can launch your company in Myanmar, now.
There are concerns that the new Myanmar Investment Law is taking time to obtain Government approval. All parties concerned are aware of the importance, not least because it currently blocks access for joint venture companies to be listed on the stock exchange. No Initial Public Offerings, IPOs, are available at this time.
We see this as a vehicle already in motion with inertia and these changes will in effect take off any remaining hand brake.
You should see it as a signal showing, without doubt, that now is the time to jump onboard this rapidly growing and prosperous economy. Call us now for a discussion in total confidence.