Under certain circumstances, registration of a PEF in the Republic of Myanmar may be subject to tax exemption. So, let’s take a closer look at what it takes to register a PEF in Myanmar.
Those seeking to get an investment license in the Republic of Myanmar may require it for:
- projects that have a strategic importance for the government;
- projects requiring heavy investments;
- projects involving the use of public buildings & land;
- projects requiring approval of the Investment Committee of Myanmar.
For other investment projects only investment approval is required.
Myanmar: Regulation of PEFs
Investment activities are regulated by the Investment Committee of Myanmar, while company registration in the Republic of Myanmar gets governed by the Investment Act. Investment activities in Myanmar's SEZs are regulated by the MSEZL. The law on land restricts the ownership of real estate by foreign individuals & legal entities (excluding lease permits issued for up to twelve months).
Foreign investors aren’t permitted to engage in the following investment activities:
- manufacture of military & security products;
- air transportation & piloting;
- manufacture of radioactive materials;
- refining of minerals;
- exploration/extraction of oil & precious stones.
The definition of foreign investors is as follows: they are individuals without Myanmar citizenship who invest in the Myanmar economy. The definition also applies to foreign enterprises (i.e. companies in which foreigners own thirty five percent of shares & more), subsidiaries & other companies. The definition of foreign investment is as follows: any investment in the Myanmar economy undertaken by investors from abroad.
Foreign investments are considered as such only if they’re undertaken by legal entities or individuals, including public funds or companies, from other countries.
Myanmar: PEF Registration
Local governments & investment committees have the exclusive prerogative to monitor & regulate activities involving foreign investment. They are also authorized to grant/deny permission for investments whose amount doesn’t exceed five million dollars & activities which aren’t deemed strategic.
The below activities are deemed strategic & should, therefore, be submitted for review of local governments & investment committees:
- projects undertaken in the telecommunications, IT, pharmaceutical, energy, biotechnology, oil & gas industries (i.e. investments in which exceed twenty million dollars);
- projects requiring investments in immovable property & land (whose amount exceeds twenty million dollars);
- projects undertaken in the agriculture sector & requiring more than one hundred acres for their execution;
- non-agriculture projects requiring more than one hundred acres for their execution;
- projects requiring heavy investment (in excess of one hundred million dollars);
- projects that require assessment of their environmental impact;
- projects undertaken in nature reserves & sites designated as cultural heritage sites.
Looking to open a business in the Republic of Myanmar? Need advice on PEF regulation in the Republic of Myanmar? Why not reach out to IQ Decision UK?