Tax relief to be given to businesses of prioritised sectors only

Only businesses in the sectors that the government wants to improve will be given tax relief in accordance with the new investment law expected to be enacted soon, according to the Myanmar Investment Commission. An income tax holiday of up to five consecutive years is currently provided for an enterprise in Myanmar as an incentive to attract more foreign investments for development of the country’s economic sector.

The new law will not allow all businesses to enjoy exemption from income tax for up to five consecutive years, said MIC Secretary U Aung Naing Oo.

But, firms making investments which are really needed for the betterment of the country,in line with national policy, will be provided an income tax holiday, added the secretary.

According to sources, exemption from income tax for up to three consecutive years is set for investments made in developed regions while a five-year tax holiday is set to be granted to investments in regions with moderate development and a seven-year tax holiday to investments in the least developed regions.

U Aung Myint, secretary of the Myanmar Rice and Paddy Traders’ Association, expressed his view that possible changes in income tax exemption would decrease foreign investments.

It should be reconsidered at a time when the United States has prepared to lift sanctions against Myanmar as the possible changes can make it less attractive for foreign investors to invest in Myanmar, he added.
The new Myanmar Investment Law that combines the Foreign Investment Law and the Myanmar Citizens Investment Law has been submitted to parliament.

Source: Global New Light of Myanmar

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