Investors can get tax break of 7 years for less developed regions: MIC Secy

THE tax holiday offered to investors in less developed regions cannot exceed 7 years under the Myanmar Investment Law, said U Aung Naing Oo, the secretary of the Myanmar Investment Commission. The MIC screens proposals for the flow of investments into the necessary sectors for the economic development of the country and equitable development of regions and states, and grants tax exemptions or relief.

Investors can enjoy a tax break for seven consecutive years in less developed regions that are designated as Zone 1, five years in moderately developed regions identified as Zone 2, and three years in developed Regions labelled as Zone 3. At present, the MIC is offering a 7-year tax holiday in the less developed regions of Chin, Kayah, Kayin, and Rakhine states, said U Aung Naing Oo. “We have granted tax incentives of three to seven years as per the Myanmar Investment Law. All the townships in Chin, Kayah, Kayin, and Rakhine states have a seven-year tax exemption. Other regions and states have not been granted a seven-year tax break,” he said. The chair of Chin State Chambers of Commerce and Industry requested a 10-year tax exemption in Chin State at the recent 23rd regular meeting with entrepreneurs, led by Vice President U Myint Swe, held at the Union of Myanmar Federation of Chambers of Commerce and Industry. For Chin State to attract domestic as well as foreign investment, the tax break must be increased to 10 years, he said. U Aung Naing Oo responded by saying that tax incentives exceeding 7 years are not allowed under the law. “The existing law does not allow tax incentives of over 7 years for those states. That can be done only if the law is amended. But Chin State enjoys other investment opportunities and relief compared with other regions and states,” he said. Chin State has basic infrastructure difficulties in terms of transportation and electricity. Those are the biggest challenges for investors. The State has not attracted investments in the 2017-2018 Fiscal Year, according to a research report on Opportunities and Challenges for Local Business Development in Chin State.
Nyein Nyein
(Translated by Ei Myat Mon)
Ref; The Global New Light of Myanmar