The new Myanmar Investment Law (“2016 MIL”) was promulgated on 18 October 2016, and since its passage investors have been expected to submit Myanmar Investment Committee (“MIC”) permit applications under the provisions of the new law. However, due to the length of time and complexity of applications, the MIC issued Notification No. 123/2016, which allows a temporary reprieve from this requirement.
The notification allows investors who have been preparing proposals pursuant to the provisions of the 2012 Foreign Investment Law (“2012 FIL”) and the 2013 Myanmar Citizens Investment Law (“2013 MCIL”) to submit their proposals under the provisions of the 2012 FIL and 2013 MCIL until 31 December 2016. All MIC permit applications submitted after this date will be expected to follow the provisions of the 2016 MIL and ensure their applications are compliant with the new law. The MIC has indicated that the regulations implementing the 2016 MIL will be ready by end of January 2017.
Service companies, logistics, engineering and consulting companies are particularly keen to apply before the deadline. These projects all receive income tax incentives under the old investment laws, but it is generally expected no such tax holidays will be granted under the 2016 MIL. For a detailed practical analysis of the differences, read our client briefing note here.
To read the notification from Myanmar Investment Commission, click here.
Should you like additional information or require assistance with your MIC permit application please contact (Jean@VDB-Loi.com).