In 2016, the foreign investment law and the citizens investment law were. 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. The new law is designed to replace the extant and outdated 1988 investment law. The new fil makes some significant changes to the previous version of the law which was passed in 1988 the old fil. Myanmar investment guide 2018 directorate of investment. Myanmar to release new investment law by next year. 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 law. Law of 1987, foreigners are restricted from owning land. This was replaced by the myanmar investment law in 2016 so as to combine the. Investor means a myanmar citizen investor or foreign investor who invests within the union in. Support labour circulation to enable skilled and experienced employees of foreign firms in myanmar to set up their own enterprises, via mechanisms to assist access to finance and land. Based in yangon and we provide provide the following services to foreign investors.
Myanmar laws1990 is under arrangement for publication in the near future. Under the myanmar income tax law, expenditure incurred for the. The fil does not repeal or amend any other laws in effect that may impact foreign investment, the most notable of which is the myanmar stateowned economics enterprises soee law. 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. Why myanmars revised foreign investment law is over. The law, enacted recently, combines the myanmar citizens investment law and the foreign investment law.
Sep 11, 2019 yangon region investment committee meeting 52020 approved ten foreign investment businesses which created about 7334 job opportunities march, 2020 endorsed enterprises by yangon region investment committee 42020. Support labour circulation to enable skilled and experienced employees of foreign firms in myanmar to. The new myanmar investment law 2016 mil came into force on 18 october 2016, when it was signed by the president, having previously been approved by the pyithu. Mar 01, 2017 myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. 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. The regulations are comprised of two separate notifications, notification 120 and notification 1120 together the investment rules. Considered by many to be one of the last economic frontiers, myanmar has been the object of investor interest for the past three years. Ministry of investment and foreign economic relations mifer. The investment law of 2015 online burmamyanmar library. Foreign direct investment and economic transformation in myanmar 2 ii. The directorate of investment and company administration dica has issued a consultation draft of the rules under the myanmar investment law 2016 mil. On 2 november 2012 myanmars president thein sein endorsed the countrys new foreign investment law fil. The fil does not repeal or amend any other laws in effect that may impact foreign investment, the most notable of which is the myanmar stateowned.
The major legislative codes for businesses are the civil and commercial code, the revenue code, the land code, and, for. Adoption of marketoriented system for the allocation of resources encouragement of private investment and entrepreneurial activity. In 2017, the century old companies law was substantially revised. Investors registered under the new fil are eligible for a lease term of up to 50 years, with the option of two consecutive tenyear renewals. Normally it takes at least three months to release rules and. Regulation and protection of investment in myanmar chapter 4. Being cognizant that the myanmar citizens investment law, pyidaungsu. Laws and regulations governing investment online burma. There is no single definition of what constitutes foreign investment. Pdf the role of foreign direct investment fdi in myanmar. International investment law understanding concepts and. Update on foreign investment in the last week, two important matters have occurred which are relevant to foreign investment in myanmar. This law shall be called the foreign investment law. The content of the codes was drawn from the traditional laws of thailand.
Under the myanmar investment law mil, foreign companies investing under a permit from the myanmar investment commission mic can enter into a 50year lease agreement with two 10year extensions. In particular, the new fil provides for more flexible shareholding ratios for joint ventures between local and foreign. International investment law introduction over the past twenty years, global flows of foreign direct investment fdi have increased at an astounding annual growth rate of over 25 percent. Investment promotion and facilitation in myanmar chapter 5. Myanmar investment law burmese version18102016 approved. Investors registered under the new fil are eligible. Myanmar foreign investment law was issued in 2012 to promote and regulate foreign investments. However, please note that cit rate for companies listed on the yangon stock exchange. These rules shall be called foreign investment rules. Under myanmar income tax law, interest are subject to tax. Key points to note background the new myanmar investment law 2016 mil came into force on 18 october 2016, when it was signed by the president, having previously been approved by the pyithu hluttaw on september 28 2016 and the amyotha hluttaw on 5 october 2016.
Companies registered under the myanmar foreign investment law can be granted a wide range of tax incentives, including all of the following. Myanmar investment guide 2018 directorate of investment and. On 31 january, 20 the ministry of national planning and economic development of myanmar released new detailed regulations to augment the 2012 myanmar foreign investment law. We would like to show you a description here but the site wont allow us. Multinational corporations mncs and their overseas investment activities are an immensely important and often contentious aspect of globalization. This issue myanmar laws2000 is theconinuation of the publication mentioned above. On 31 january, 20 the ministry of national planning and economic development of myanmar released new detailed regulations to augment the 2012 myanmar foreign investment law fil. Since then the law to regulate new foreign investment has. Commission means the myanmar investment commission formed under this law c. Myanmar update on foreign investment baker mckenzie. With the new investment law sailing through both houses of parliament this month, formal approval appears imminent, as a signature from the presidents office is all that is. Myanmar promulgated the long anticipated new foreign investment law the new fil when president u thein sein signed the bill on 2 november 2012.
Nothing unworkable had been suggested and some changes, such as allowing foreign shareholders and directors, would make direct investment in myanmar companies easier, he said. Foreign exchange regulation act central bank of myanmar. Foreign investment overview for myanmar myanmar 2016. The union of myanmar foreign investment law aseankorea. The myanmar times sat down with myanmar investment commission secretary u aung naing oo this week to discuss what the new law means for both foreign and local businesses and how the mic plans to. The major legislative codes for businesses are the civil and commercial code, the revenue code, the land code, and, for many, the foreign business act. Since sanctions were lifted in 2012, economic growth in myanmar has been on a steady rise in. 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. On 3 november 2012, a new foreign investment law 2012 fil came into force, replacing the myanmar foreign investment law 101988. Myanmar laws 19881989, myanmar laws 1997 and myanmar laws 19981999. No person shall have dealings in foreign exchange at rates of exchange other than the rates for the time being authorized by the central bank of myanmar. Myanmar the investment law of 2015 consolidating and replacing the myanmar citizens investment law, pyidaungsu htluttaw law no.
Myanmar investment law burmese version18102016 approved 1. Nov 15, 2016 the new myanmar investment law 2016 mil came into force on 18 october 2016, when it was signed by the president, having previously been approved by the pyithu hluttaw on september 28 2016 and. Around 69% of fdi in myanmar goes to a limited number of sectors that are. This law shall be called the union of myanmar foreign investment. Use similar mechanisms to attract diaspora entrepreneurs back to myanmar. The information in this book give insights into the business opportunities that exit in myanmar and the practical steps that need to be taken to bring them to fruition. International investment agreements usually define investment. The study was based on secondary data source of myanmar over the. Attorneygeneral lawauditorgeneral lawlaw amending the myanmar red cross society act, 1959adaptation of expressions lawunion of. Myanmar foreign investment law implementing rules table of contents prohibited activities joint ventures restricted activities procedural information on 31 january, 20 the ministry of national planning and economic development of myanmar released new detailed regulations to augment the 2012 myanmar foreign investment law fil. Tax holiday from corporate income tax of five years or more for enterprises engaged in the production of goods or. The soee law restricts private sector participation both local and foreign in most sectors of the economy, unless granted an. Oecds dissemination platform for all published content books, serials and statistics.
Myanmars upcoming new companies act and revised foreign investment law. Foreigners are allowed to lease land, and the lease duration is a maximum of one year. Aug 01, 2018 naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. The mil was drafted by the myanmar investment commission mic in consultation with the international finance. Soepaing said the proposed foreign investment law revisions were likely to have a positive effect on foreign investment in the country. The objective of the study is to examine the role of foreign direct investment fdi and the situation of fdi flows in myanmar. Myanmar foreign investment law implementing rules table of contents prohibited activities joint ventures restricted activities procedural information on 31 january, 20 the ministry of. Oct 14, 2016 with the new investment law sailing through both houses of parliament this month, formal approval appears imminent, as a signature from the presidents office is all that is required to see it passed. Myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. Approved date published by name of authority printed date.
Member of union of myanmar federation of chambers of commerce and industry umfcci. Law and policy 24 march 2016 faculty of law, national university of singapore bukit timah campus programme thursday, 24 march 2016 8. May 03, 20 foreign investors will be entitled to income tax exemption for a period of 5 consecutive years as compared to 3 years under the previous law, although the myanmar investment commission the mic. 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. In line with his broad reform agenda, president thein sein announced plans for a more liberal investment regime in late 2011. 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. Naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. Myanmar myanmar investment law investment laws navigator. Puchniak, director centre for asian legal studies faculty of law, national university of singapore. Oct 19, 2016 myanmar investment law burmese version18102016 approved 1. Union government means the union government of the. 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.
Attorneygeneral lawauditorgeneral lawlaw amending the myanmar red cross society act, 1959adaptation of expressions lawunion of myanmar foreign investment law. Foreign investors will be entitled to income tax exemption for a period of 5 consecutive years as compared to 3 years under the previous law, although the myanmar. The foreign investment law, pyidaungsu htluttaw law. The myanmar foreign investment law also expressly provides that recipients of an mic permit will not be nationalised during the term of their investment.
It was the first decline in international inflows since the 201220 fiscal year. Foreign direct investment policy myanmars foreign direct investment policy is a component of the overall restructuring and development policy of the government. The words and expressions in this law shall mean as designated hereundera the state means the republic of the union of myanmar. Myanmar burma human rights report 2020 myo aung myanmar. Consult myanmar for fruitful investment in myanmar. The republic of the union of myanmar pyidaungsu hluttaw. Laws477 international investment law course syllabus. The investment challenges in a context where the economy is still dominated by the interests of the. Since then the law to regulate new foreign investment has undergone several rewrites and heated debate in parliament. This law shall be called the myanmar investment law. The expressions contained in these rules shall have the same meaning as are assigned to. Where any foreign exchange is acquired by any person other than an authorized dealer for any particular purpose, or where any person has been permitted conditionally to acquire foreign. Yangon region investment committee meeting 52020 approved ten foreign investment businesses which created about 7334 job opportunities march, 2020 endorsed. New myanmar foreign investment law enacted on 2 november.
643 813 1304 1415 1236 1559 1247 337 769 1519 963 695 31 762 109 605 1426 988 157 1518 769 326 1230 100 1337 298 1075 446 1118 748 712 49 1361 604 929 605 1060 537