New MIC Permit or Endorsement to Be Issued to Businesses Suffering Fire Damage in MyanmarSeptember 17, 2021
The Myanmar Investment Commission (“MIC”) released Notification 28/2021, dated 8 September 2021, regarding a support plan for the recovery of businesses in Myanmar (“Notification 28”); the MIC will issue a new MIC Permit or Endorsement to investments that suffered fire damage in March 2021.
Who are entitled to apply?
Notification 28 listed two main groups of fire-damaged industries that can resubmit their investment proposal to obtain a new MIC Permit or Endorsement, including the following:
- Those who operate with an MIC Permit or Endorsement from the MIC or an Endorsement from the Yangon Regional Investment Commission (“YRIC”); or
- Those who operate without an MIC Permit or Endorsement issued by the MIC or an Endorsement issued by the YRIC
Please note that Notification 28 will only be applicable to investments that suffered fire damage in March 2021.
What benefits will be granted?
As the new MIC Permit or Endorsement will be issued, the investment will be entitled to tax exemption and relief in accordance with section 75 (a) to (c) and section 77 (a) of the Myanmar Investment Law, including the following:
- Tax exemption and relief from customs duty and other internal taxes for importation of machinery and construction materials to be used for re-operation of the damaged investment during the construction period
- Three-, five-, or seven-year income-tax holiday for promoted sectors depending on the location of the investment
It is not clear from Notification 28 whether investments that suffered fire damage in regions other than Yangon can also resubmit an application to the MIC for a new MIC Permit or Endorsement. However, as Notification 28 clearly cites the MIC and YRIC as the relevant authorities, it may imply that only damaged businesses within the Yangon region are subject to this Notification. For similarly damaged businesses in other regions, they may need to confirm with the MIC or the relevant regional investment commission.