Cluster Senior Sales Manager at Hilton Hotels & ResortsRecently, I had a breakfast meeting with DG from DICA and below are some take-aways from his presentation on the updates of newly approved Myanmar Investment Law.
1) Now DICA and MIC are merged to streamline the process and save time for the investors while submitting the proposals.
2) State Governments will now involve in the investment approval process and will approve 75% of the investments however, investments that want to be considered for investment incentives offered need to go through MIC for approval as well.
3) Incentives. Investment incentives will be handled 100% by MIC. There will be different zones (1,2,3) based on the development levels. For incentives, for example, Yangon is considered Zone 3 while Chin State is Zone 1. Emerging cities are in Zone 2. Any investments made in Zone 3 will get 3 years tax exemption while 2 and 1 get 5 and 7 years exemption respectively. Other criteria will include performance of the investor.
4) Guarantee The most attractive guarantee in this Investment Law is the provision of funds transfers. No Nationalization and No Termination are guaranteed. In addition, expropriation of funds are allowed.
5) Focused Sectors are manufacturing, infrastructure investments, PPP, Agriculture, Food-processing and Establishments of industrial zones
6) New Initiatives as below
11 Oct 2016