Investment laws myanmar myanmar investment law 2016 official translation note the investment laws navigator is based upon sources believed to be accurate and reliable and is intended to be uptodate at the time it was generated. The condominium law stipulates criteria necessary for a project to qualify as a condominium suitable for foreign ownership. Foreign investors who wish to undertake specific business activities in myanmar may rely on the foreign investment framework available under the myanmar companies act, the 2012 myanmar foreign investment law and the 2014 sez law. Investment promotion and facilitation in myanmar chapter 5. The following expressions contained in this law shall have the meanings given. Therefore, in 2016, we ramped up our headcount and the number of our senior advisors, and we converted to a system of exclusively dedicated practice teams in myanmar.
Myanmar investment law the pyidaungsu hluttaw law no. Enacted on 18 th october 2016 combines the foreign investment law 2012 and the citizens investment law 20 proposals under the new law submitted since april 2017 distinguishes between citizen investor and foreign. Code, the burma myanmar courts manual, and numerous special laws. Economic growth is priority, asia times, 29 march 2016 4 tourism ministry aims for 6 million visitors, myanmartimes, 26 march. Myanmar investment law 2016 implementation probably 1st april 2017 foreign investment law 2012 citizens investment law 20 mic notification 26 2016 foreign investment rules 20 special economic zones law 2014 electricity law 2014.
Myanmar permits full foreign capital investments in. Myanmars new investment law regulations to take effect next. A revised draft of the myanmar companies law was approved by. Total foreign ownership in any one project, however, is limited to 40 percent of total project space. The republic of the union of myanmar pyidaungsu hluttaw. Enacted on 18 th october 2016 combines the foreign investment law 2012 and the citizens investment law 20 proposals under the new law submitted since april 2017 distinguishes between citizen investor and foreign investor citizen investor includes enterprises established only by citizens which is at odds with the draft of the new companies. Guide to the myanmar company law berwin leighton paisner. In the current reform process, smallholders are reclaiming their legal land rights at the same time that foreign investment is flooding the country, placing all previous land use arrangements under increasing pressure. Myanmar investment law burmese version1810 2016 approved. Myanmar promulgated the long anticipated new foreign investment law the new fil when president u thein sein signed the bill on 2 november 2012.
New investment law helps myanmar rebuild its economy and. However, bylaws implementing the new mil have not been issued yet and as such the rules issued under the old myanmar foreign investment law continue to be in effect to the extent that they are not contrary to the new mil. The foreign investment law the pyidaungsu hluttaw law no 212012 the 3rd waning of thadingyut, 74 me 2nd november, 2012 the pyidaungsu hluttaw hereby enacts this law. Foreign direct investment fdi is projected to increase as the government drafts and enforces businessfriendly measures. Foreign direct investment and economic transformation in myanmar 3 acronyms cmp cutmakepack cso central statistical organisation dica directorate of investment and company administration dtt double taxation treaty fdi foreign direct investment fil foreign investment law fob free on board gdp gross domestic product. Myanmar foreign investment law was issued in 2012 to promote and regulate foreign investments. This action is expected to significantly increase inbound investment into myanmar. Since 1988, the share of agriculture, livestock and fisheries in approved foreign investment has averaged 1. The union of myanmar foreign investment law 1988 statement on foreign investment law of myanmar the government of the union of myanmar has been striving hard to promote all round development of national economy to improve provisions of food, clothing and shelter for the people so as to ameliorate their living standards. Investment law update myanmar garment manufacturers. Investing in myanmar s power sector 10 th november, 2016.
Myanmar investment law draft 2016, pyidaungsu hluttaw law no. The taxable capital gain is calculated based on the difference between the sales proceeds and the cost of the asset, less the accumulated tax depreciation allowed under the myanmar income tax law. Apr 23, 2018 according to unesco data, an average of 7,200 students left myanmar each year between 2011 and 2016 to study in foreign countries, with thailand, japan, malaysia and singapore the most popular destinations. Attorneygeneral lawauditorgeneral lawlaw amending the myanmar red cross society act, 1959adaptation of expressions lawunion of myanmar foreign investment law. In 201516, it more than doubled spending on education to k700 billion, according to the oxford business groups 2018 report on myanmar. Myanmar companies law english and burmese version from dica pdf 1. Naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. This was replaced by the myanmar investment law in 2016 so as to combine the regulation of both foreign and domestic investments under one set of laws.
However, foreign investors must purchase a condominium through a transfer of funds from abroad, as there is no current allowance for incountry payment. Fet is among the most farreaching, and widely criticized, investor rights that investment treaties grant to foreign investors. The myanmar citizen investment law and myanmar foreign investment law have been repealed with effect from 18 october 2016. Under myanmar income tax law, dividends received are not subject to income tax. The total foreign direct investment in the country amounted to 64. Oct 27, 2016 the 2016 law also enshrines the national treatment standard for foreign direct investment in myanmar. This page provides the latest reported value for myanmar foreign direct investment plus. Aug 01, 2018 naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday.
Positioning myanmar as an attractive new investment. The passing of the myanmar investment law 402016 mil has brought about. Client briefing note 8 october 2016 as most of you will be aware, yanmar m law which would combine the foreign. In 2016 the government of myanmar introduced a new myanmar investment law mil foreign investment law fil. The supportive environment with macroeconomic stability, rule of law, credible dispute settlement procedures, and reliable financial. Myanmar foreign direct investment 20122019 data 2020.
New visa regulations draft law concerning foreigners. Financial institutions law2016 central bank of myanmar. Myanmar investment law draft embassy of myanmar in. Myanmar investment law burmese version1810 2016 approved 1,758 views. Myanmar is in the midst of rapid economic and social change, with dramatic consequences for land tenure. Home law library laws and regulations laws myanmar laws 1988until now union solidarity and development party laws 2012 2016 myanmar laws 2012 pyidaungsu hluttaw law no. Guide to the myanmar investment law berwin leighton.
What changes in practice under the new investment law. Oct 14, 2016 new investment law will make it easier to do business in myanmar. Overview of rules and investment framework for foreign investors in myanmar. This law shall be called the foreign investment law.
On 18 october 2016, the bill of the new myanmar investment law 2016 was signed into law one month later, the myanmar investment commission published notification no. However, no capital gains tax will be levied if the total value of such capital assets within a year does not exceed 10 million mmk. Myanmar permits full foreign capital investments in education sector the myanmar times. A number of investment activities set out in paragraph 1b of myanmar investment commission notification 152017 will now be open for minority investment by foreign investors. The expressions contained in this law shall have the meanings given hereunder. Based on data for actual and approved foreign direct investment fdi from 19892011, this paper explores the major trends in fdi in myanmar, focusing on changes over time in the source and sector of investment. For example, aside from the myanmar investment law 2016, no asean investment law guarantees investors fair and equitable treatment fet. China topped the investment lineup, accounting for 28. Now soon to be in force, we outline what changes in practice. The new law provides corporate tax reductions for foreign businesses investing in myanmar and eases conditions for longterm real estate leases. We would like to show you a description here but the site wont allow us. While by law, foreigners residing in myanmar for more than 90 days are required to apply for a foreigner registration. Day, month, 2016 the pyidaungsu hluttaw hereby enacts this law. In particular, the new fil provides for more flexible shareholding ratios for joint ventures between local and foreign.
It is important for both myanmar and foreign investors to understand the impact of these changes if they are to benefit fully from them. Foreign investment law of myanmar1988 burma library. A foreign investor may want to consider obtaining an mic permit investment permit, which would allow a foreign investor to benefit from certain investment incentives available under the mil. The condominium law aims to establish a framework that promotes and facilitates foreign investment in myanmar. Through these laws, foreign investors may choose to establish a foreign branch office in myanmar. The mil came into effect on 18 october 2016 and consolidated and replaced the previous foreign investment law 2012 and the citizens investment law 20. Under the myanmar investment law 2016 mil the myanmar investment commission mic is the regulator for foreign investment. Historically, myanmar was a major exporter of rice, while in more recent times it has become an important exporter of pulses.
The 2016 law comes close on the heels of the lifting of nearly all sanctions against myanmar by the united states of america on october 7, 2016. Myanmar permits full foreign capital investments in education. The investment law combines the previous myanmar citizens investment law with the foreign investment law, ending myanmar s status as the only asean member with separate investment laws for citizens and foreigners. In 2017, the century old companies law was substantially revised. Conformity to the investment policy announced in 2016 and new investment regime of myanmar under the myanmar investment law and special economic zone sez law. The new myanmar investment law mil took effect in 2017 to combine the old citizens investment law and the myanmar investment law. Regulation and protection of investment in myanmar chapter 4. May 03, 20 on 2 november 2012, president thein sein signed into law myanmars new foreign investment law the new fil, replacing the previous union of myanmar foreign investment law of 1988. The republic of the union of myanmar pyidaungsu hluttaw foreign investment law pyidaungsu hluttaw law no. Economic growth is priority, asia times, 29 march 2016. Myanmar investment law directorate of investment and. Since 2012 the foreign direct investment fdi levels in myanmar have been propelled. Law and policy 24 march 2016 faculty of law, national university of singapore bukit timah campus programme thursday, 24 march 2016 8.
The new fil makes some significant changes to the previous version of the law which was passed in 1988 the old fil. In april 2017, myanmar will begin implementing a new investment law designed to promote and facilitate both foreign and domestic investment in the economy and open more economic sectors to private investment. Myanmar s new financial institutions law fil came into force on january 25 2016. This update to the most important investmentrelated legislation helps establish the coherent legal framework for both domestic and foreign investors. The expressions contained in these rules shall have the same meaning as are. Foreign direct investment promotion plan in myanmar fdipp in 2014. The draft law combines elements of the myanmar companies act of 1914 and the special companies act of 1950, reworked in hopes of attracting foreign investment, said deputy minister for planning and finance u maung. Foreign direct investment policy myanmar s foreign direct investment policy is a component of the overall restructuring and development policy of the government.
The investment law, which passed the lower house of myanmars legislature on september 28 th and the upper house on october 5 th, was signed by president htin kyaw on october 18 th and represents further liberalization of the southeast asian nations foreign investment. Investor means a myanmar citizen investor or foreign investor who. Adoption of marketoriented system for the allocation of resources encouragement of private investment and entrepreneurial activity. Oct 19, 2016 myanmar investment law burmese version18102016 approved 1. Myanmar update on foreign investment baker mckenzie. Capital gains tax is levied on gains from the sale, exchange or transfer of capital assets. Positioning myanmar as an attractive new investment destination in southeast asia 8thmeeting of the asiapacific foreign direct investment fdi network united nations conference centre, bangkok, thailand 2526 september 2018. Foreign direct investment policy myanmars foreign direct investment policy is a component of the overall restructuring and development policy of the government. The fiml applied to financial institutions including commercial banks, investment or development banks, finance companies, and credit societies. Fdi has mainly focused on the energy, oil and gas sectors. It was the first decline in international inflows since the 201220 fiscal year. Myanmar investment law draft 2016, pyidaungsu hluttaw.
The myanmar investment commission mic has permitted foreigners to make full capital investments in private schools in myanmar, according to notification 72018 issued by the mic on april 20. Section 47 of the 2016 law requires the myanmar government to offer treatment to foreign investors and their businesses in myanmar that is no less favourable than that offered to myanmar nationals. Conventus myanmar keeps the market up to date on the legal and business landscape in myanmar and gives the market access to new ideas on how to navigate the myanmar business environment. On the international day against drugs 26th june in 2016, the government of myanmar formally requested unodc financial and technical support to design a new policy for myanmar. Myanmar myanmar investment law investment laws navigator.
While the exact contents of the new law have yet to be finalized, many of its key features have already come to the surface. This law shall be called the myanmar investment law. Mar 01, 2017 myanmar investment law the pyidaungsu hluttaw law no. A guide to the myanmar investment law the passing of the myanmar investment law 40 2016 mil has brought about significant changes to myanmar s investment framework affecting both myanmar and foreign investors. Investors registered under the new filare eligible for a lease term of up to 50 years, with the option of two consecutive tenyear renewals. The myanmar investment law 2016 mil was enacted to replace the foreign investment law 2012 and the myanmar citizens investment law 20 on 18th october 2016. These rules shall be called foreign investment rules. Foreign investment overview for myanmar myanmar 2016. Investor means a myanmar citizen investor or foreign investor who invests within the union in accordance with the law.
The rights for myanmar to impose capital gains tax on nonresident investors are limited in several of myanmars income tax treaties. Myanmar investment law burmese version18102016 approved. Puchniak, director centre for asian legal studies faculty of law, national university of singapore. Overview of rules and investment framework for foreign. With the mil affecting all investments in myanmar, no matter how large or small, or whether being made by local or. The new investment law enacted on 18 th october 2016 combines the foreign investment law 2012 and the citizens investment law 20 proposals under the new law submitted since april 2017 distinguishes between citizen investor and foreign investor citizen investor includes enterprises established only. It is made available with the understanding that unctad is not engaged in rendering legal or other professional. On 30th march 2017, the ministry of planning and finance, therefore, published the myanmar investment rules mir under the myanmar investment law 2016 mil as notification no. The condominium law, for the first time, allows foreign nationals to legally purchase condominiums in myanmar. Myanmar citizens investment law of 20 mcil myanmar special economic zone law of 2014.
On november 3, 2012, a new foreign investment law 2012 fil came into force, replacing the myanmar foreign investment law 101988. The myanmar investment commission and the relevant government organizations are sure to facilitate foreign investments through transparent, clear and expeditious procedures. It replaces the financial institutions of myanmar law fiml of 1990. At a landmark economic policy event in naypyitaw on october 22, 2016 state counsellor.