China Tax Service
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ATAHK reads from Xinhua News that The Myanmar Investment Commission ( MIC) has prescribed some local and foreign investment business categories which are deemed as ineligible for exemption and relief from commercial tax and custom duties, according to a notification of the commission published Thursday.For details, please refer to the following news from Xinhua News on August 28th:
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These categories of businesses include manufacturing of alcohol, beer, cigarettes and relate services; distribution of gasoline, diesel, machine oil and natural gas; and vehicle services and low technology and low investment industries which can be carried out by Myanmar nationals except industries that require a large labor force.
The non-tax exemption investment businesses also comprise other businesses such as renting forest areas for agriculture and logging; construction of buildings and sale of them; vehicles and machinery rental service; and restaurants and food-selling business.
However, food industry which is related to milk and dairy products will be granted exemption from custom duties, while the commercial tax remains in place without change.
According to official statistics, Myanmar received a tax amount of 1.53 trillion Kyats (about 1.53 billion U.S. dollars) for 2012 and 2.71 trillion kyats for 2013.
The expected amount of tax for 2014 is 3.4 trillion Kyats.
Meanwhile, Myanmar reformed its investment commission in June this year as part of its efforts to draw more foreign investment into the country.
The MIC, standing as an independent organization under the Ministry of National Planning and Economic Development, has so far during this year permitted nearly 30 projects for investment by local entrepreneurs, while 60 for investment by foreigners.
Official figures show that Myanmar attracted from 34 counties and regions a total of contracted foreign investment of 46.71 billion U.S. dollars as of June this year since 1988 when Myanmar opened door to the world.
Sectorally speaking, electric power sector received the largest investment with 19.28 billion USD, accounting for 41.28 percent of the total, followed by oil and gas with 14.37 billion USD (30.76 percent) and manufacturing with 4.12 billion USD (8.84 percent). Other sectors are mining, hotels and tourist, real estate, livestock and fishery and agriculture.
Myanmar promulgated a new foreign investment law in November 2012, replacing the over-two-decade-old 1988 similar law, and reformed its investment commission in June this year as part of its efforts to draw more foreign investment in line with its reform strategy.
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