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| (V) INCENTIVES | ||||||
| (1) CORPORATE INCOME TAXES/INCOME TAX ALLOWANCE | ||||||
| Foreign investors are granted a minimum of 3 year corporate income tax exemption, extendible on a case-by-case basis. | ||||||
(2) EXEMPTION FROM OR REDUCTION OF TAXES ON IMPORTED CAPITAL GOODS |
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| The Union of Myanmar Foreign Investment Law 1988 grants
exemption from customs duty and other internal taxes on imported capital
equipment and materials during the construction, exploration and development
period of the investment project. During the construction period as mentioned in the proposal form or extended construction period approved by MIC, the investor can enjoy this exemption. |
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(3) EXEMPTION FROM OR REDUCTION OF TAXES ON IMPORTED RAW MATERIALS |
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| During the first 3 years of commercial production and
operational period, exemption from customs duty and other internal
taxes on imported raw materials is granted. The investor has to inform MIC the commenced date of commercial operation for approval. After getting MIC approval, the investor can enjoy the exemption on imported raw materials. It is necessary to mention the performance of the project in applying the above incentives. |
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| (4) OTHER INCENTIVES (I.E. GRANTS, DOMESTIC LOANS, SUBSIDIES, ETC.) | ||||||
| Other incentives are also provided such as: • Exemption or relief from income tax on profits which are maintained in a reserved fund and re-invested within one year. • Right to accelerate depreciation. • Relief from income tax up to 50% on the profits accrued from exports. • Right to pay income tax on behalf of the foreigners employed and to deduct the same from the assessable income of the enterprise. • Right to pay income tax of the foreign employees at the rates applicable to the citizens of Myanmar. • Right to deduct the expenditures for research and development carried out within the State. • Right to carry forward and set off losses up to 3 consecutive years, from the year the loss is made. |
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