8 June 2016
MYANMAR: Corporate Income Tax Cuts Loom for Foreign Investors in Less-Developed States
The Myanmar government is looking to reduce the corporate income tax payable by overseas companies who invest in the country’s less-developed regions, notably the states of Chin, Kayah and Rakhine.
While specific details of the proposed incentives have yet to be announced, government sources have indicated that provisions for these tax breaks will be included in the forthcoming Myanmar Investment Bill, which is currently at the draft stage. This new legislation will merge the existing Foreign Investment Law with the law pertaining to Myanmar citizens.
At present, FDI in Myanmar is largely directed towards the country’s more developed regions, particularly Yangon and Mandalay. It is hoped that the proposed incentives will boost investment in housing, transport infrastructure, electricity and agriculture in the less affluent states.