5 Oct 2016
MYANMAR: New Investment Regulations Offer Simplified Approval Procedures, Strategic Incentives and Extended Land Leases
Under proposed changes to the country’s investment regulations, only those FDI projects that are capital-intensive, considered of strategic importance by the government or perceived to have a social or environmental impact will require prior approval from the Myanmar Investment Commission (MIC). Overseas-backed projects that fall outside of these categories can instead apply for an MIC endorsement (or certificate) via a newly-introduced streamlined process.
Overall, tax incentives for FDI projects will no longer be automatically granted. With the government now committed to taking a more strategic approach, the MIC may offer tax exemptions of up to seven years for investment projects in priority sectors and for those located in the less-developed regions of the country.
In other moves, smaller companies and FDI projects will now be entitled to apply for 50-year leases on both government and privately-owned land, with the option of two further 10-year extensions.
The above proposed changes were approved by the lower house of the country’s parliament on 28 September. The draft Myanmar Investment Law, which consolidates and replaces the Foreign Investment Law of 2012 and the Myanmar Citizens’ Investment Law of 2013, is expected to be passed by the end of October after approval from the upper house.