According Myanmar
Investment Law
The Salient
Points of the Myanmar Foreign Investment Law are as
follows:-
Introduction
The Union of Myanmar Foreign Investment Law was promulgated
on 30th November 1988, as The State Law and Order
Restoration Council Law No. 10 / 88, in order to promote all
round development of national economy.
Basic Principles
- promotion and expansion of exports;
- exploitation of natural resources which require heavy
investment;
- acquisition of high technology;
- supporting and assisting production and services involving
large capital;
- opening of more employment opportunities;
- development of works which would save energy consumption;
- regional development.
Applicable Economic Activities
This Law applies to economic activities prescribed by the
Union of Myanmar Foreign Investment Commission from time to
time with the prior approval of the Government.
Form of Organization
Form of investment may be made in any of the followings :-
(a) investment made by a foreigner to the extent of one
hundred percent of foreign capital;
(b) joint-venture made between a foreigner and a Myanmar
citizen.
In order to make an investment, it could be :-
(i) a sole proprietorship, a partnership and a limited
company may be formed;
(ii) if a joint-venture is formed, the foreign capital shall
be at least 35 percent of the total capital.
Acceptance of Proposal
(i) The Commission may accept any proposal which in its
opinion will promote the interests of the State and which is
without prejudice to any existing law;
(ii) The Commission shall in scrutinizing a proposal take
into consideration facts such as financial credibility,
economic justification of the business enterprise and
appropriateness of technology;
(iii) The Commission shall issue a permit to a promoter, on
a proposal being accepted;
(iv) In case an extension, relaxation or amendment of the
terms of the permit or the agreement is submitted by those
concerned, the Commission may allow thereof as it may deem
appropriate;
(v) The Commission shall take necessary and prompt action in
respect of complaints made by investors on failure to
receive, benefits entitled to under this Law;
(vi) The Commission may, at any time require a promoter or
an investor to furnish such evidence or facts as the
Commission may deem necessary;
(vii) The Commission may, for the purpose of carrying out
the provisions of this Law form such committees and bodies
as may be necessary;
(viii) The Commission may prescribe the bank which shall
transact financial matters under this Law;
(ix) The Commission shall, from time to time report its
performance to the Government. It shall also recommend to
the Government measures necessary to facilitate and promote
foreign investments.
Insurance
An economic organization formed under a permit shall in
effect place insurance with the Myanma Insurance in respect
of the prescribed types of insurance.
Exemption
and Reliefs
(a) in respect of any enterprise for the production of goods
or services, exemption from income tax for a period
extending to 3 consecutive years, inclusive of the year of
commencement of production of goods or services; in case
where it is beneficial for the State, exemption or relief
from income tax for a further reasonable period depending
upon the success of the enterprise in which investment is
made;
(b) exemption or relief from income tax on profits of the
business if they are maintained in a reserve fund and
re-invested therein within 1 year after the reserve is made;
(c) right to accelerate depreciation in respect of
machinery, equipment, building or other capital assets used
in the business, at the rate fixed by the Commission to the
extent of the original value for the purpose of income tax
assessment;
(d) if the goods produced by any enterprise are exported,
relief from income tax up to 50 percent on the profits
accrued from the said export;
(e) right of an investor to pay income tax payable to the
State on behalf of foreigner who have come from abroad and
are employed in the enterprise and the right to deduct such
payment from the assessable income;
(f) right to pay income tax on the income of the above
mentioned foreigner at the rates applicable to the citizens
residing within the country;
(g) right to deduct from the assessment income, such
expenses incurred in respect of research and development
relating to the enterprise which are actually required and
are carried out within the State;
(h) right to carry forward and set-off up to 3 consecutive
years from the year the loss is sustained in respect of such
loss sustained within 2 years immediately following the
enjoyment of exemption or relief from income tax as
contained in sub-section (a), for each individual
enterprise;
(i) exemption or relief from custom duty or other internal
taxes or both on machinery, equipment, instruments,
machinery components, spare parts and materials used in the
business, which are imported as they are actually required
for use during the period of construction;
(j) exemption or relief from customs duty or other internal
taxes or both on such raw materials imported for the first 3
years' commercial production following the completion of
construction.
Guarantees
The Government guarantees that an economic enterprise formed
under a permit shall not be nationalized during the term of
the contract or during an extended terms, if so extended.
On the expiry of the term of the contract, the Government
guarantees an investor of foreign capital, the rights he is
entitled to, in the foreign currency in which such
investment was made.
Foreign Capital
The Commission shall evaluate the foreign capital in terms
of kyat in the manner prescribed, and register it in the
name of the investor. In so registering, the types of the
foreign capital and the type of the foreign currency
evaluated shall be stated.
In the event of termination of business, the person who has
brought in foreign capital may withdraw foreign capital
which he is entitled to withdraw as prescribed by the
Commission within the time stipulated.
Transfer of Foreign Currency
The following shall be transferable abroad in the relevant
foreign currency through the bank prescribed by the
Commission, at the prevailing official rate of exchange:-
(a) foreign currency entitled to by the person who has
brought in foreign capital;
(b) foreign currency permitted for withdrawal by the
Commission to the person who has brought in foreign capital;
(c) net profits after deducting from the annual profits
received by the person who has brought in foreign capital,
all taxes and the prescribed funds;
(d) legitimate balance, after causing payment to be made in
respect of taxes and after deducting in the manner
prescribed, living expenses incurred for himself and his
family, out of the salary and lawful income obtained by the
foreign personnel during performance of service in the
State.
Opening of Bank Accounts
An economic organization formed under a permit shall open in
the bank prescribed by the Commission, a foreign currency
account in the type of foreign currency accepted by the
bank, and a kyat account and carry out all financial
transactions relating to the business enterprise.
Foreigners serving in any such economic organization shall
open a foreign currency account and a kyat account in any
bank prescribed by the Commission.
According
Hotel and Tourism Law
Case 1 : TMC
Case 2 : Myanmar Andaman Resort
Myanmar Andaman
Resort is located on Fork (Macleod) Island in Myeik (Mergui)
Archipelago, Southern part of Myanmar (Burma) at Latitude 10
10 and Longitude 97 58 and 40 nautical miles from Kawthaung
(Victoria Point) and Ranong, Thailand and 160 nautical miles
from Myeik (Mergui).
To date Myanmar
Andaman Resort is said to have invested 1 million dollors
(US$) and it is operational.
Its strong
points are beautiful beach, and they claimed one island one
resort project. Forest in the background is full of tropical
trees and wild animals. When it was being, much of the
timber came from the forest on the island and from those of
nearby islands. The timber accounts for about 50% of the
cost of construction. It also has a year-round fresh water
stream.
On the other
hand, the island is quite far from Kawthaung - the nearest
town. This makes logistical problems during construction.
And now the normal operation time, it is very costly to get
to the island and is facing staff movement problems.
On the island
live at least 5 species of bird of prey: White-bellied Sea
Eagle (Haliaeetus leucogaster), Crested Serpent Eagle (Spilornis
cheela), Crested Goshawk (Acipiter trivirgatus), Brahminy
Kite (Haliastur indus) and an unidentified Buzzard. Beside
from bird of prays. Macleod Island is an important breeding
and foraging site for Wreathed Hornbills (Aceros undulates),
which is another species indicator of the good health of the
forest. Other interesting birds of the island include
important populations of Edible-nest Swiftlets (Collocalia
fuciphage) that breed in caves at sea leve, Collared
kingfishers (Todiramphus chloris) and the elusive Beach
Thick-knee (Esacus neglectus), which is a larger wader that
requires undisturbed sandy beaches to live on. Many more
bird species breed in the forest on the island, making it a
real bird sanctuary. And some Butterfly, Cricket, Squirrel
and wild life, like Wildpig and Monitor Lizard, etc., can
also be found.
Accommodation
• 14 Superior
Cottages (26 sqm)
• 8 Suit Chalets (40 sqm)
Facilities
• Hot and Cool
Shower (Suite Chalet)
• Air-con (Superior Cottages / Suite Chalet)
• Mosquito Net, Hair dryer
• Water Purification System
• Bio Sanitary System
• Laundry Service
• IDD Telephone available at Reception
• Own Generator : voltage 220-230
• Dive Center
Case 3 : Andaman Pearls
Case 4 : Zee Kone
Case 5 : Rubber (Powergyi Pa We Island)
Case 6 :
Soft Shell, Crab / Mud
Crab
Case 7 : Fishery & Cold Storage
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