Tax exemptions to be granted to 100 per cent of export factories

TAX exemptions will be granted to 100 per cent of export factories operating in Myanmar without time limit if both nationals and (if applicable) their foreigner partners export all finished products they manufacture, it has been learned from the Directorate of Investment and Company Administration (DICA).

Export enterprises will be exempted from certain taxes. That means they will receive a refund of the duties levied on their imported raw materials when they export their finished products. This tax exemption has been enshrined in the new Investment Law to bolster the export volume, said U Aung Naing Oo, secretary of the Myanmar Investment Commission (MIC).

According to existing business law, both custom duties and other general taxes levied on imported raw materials will be exempted for three years after the MIC has granted permission to an enterprise. However, this kind of exemption will not be granted according to the new MIC law, said U Aung Naing Oo.

Export factories will be able to enjoy, however, a right to duty exemption without time limit. If they want to be engaged in exporting for 20 years, they will be granted a 20- year tax exemption. A 50 year tax exemption is also available. Companies will be refunded the tax levied on imported materials against the volume of export, he added.

Myanmar’s trade deficit has increased recently due to the value of imports rising above export earnings, triggering a need for US currency.

Source: Global New Light of Myanmar

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