Myanmar's Custom Department has reduced customs duties on imports of semi-knocked-down ("SKD") and completely-knocked-down ("CKD") vehicles with effect from 1 June 2023 until 31 May 2024.
The new customs duty rates for SKD systems as compared to the old rates are set out below.
|
SKD |
New Rate |
Old Rate |
|
Passenger vehicles |
5% |
7.5% |
|
Motorcycles |
1.5% |
3% |
|
Three-wheeled motorcycles |
3% |
7.5% |
|
Buses |
3% |
7.5% |
|
Trucks and trucks for body building |
3% |
7.5% |
The new customs duty rates for CKD systems as compared to the old rates are set out below.
|
CKD |
New Rate |
Old Rate |
|
Passenger vehicles |
3% |
5% |
|
Motorcycles |
1.5% |
3% |
|
Three-wheeled motorcycles for transportation of passengers |
1.5% |
5% |
|
Three-wheeled motorcycles for transportation of goods |
3% |
5% |
|
Buses |
3% |
5% |
|
Trucks and trucks for body building |
3% |
5% |
On 23 May 2023, the Department of Trade under the Ministry of Commerce ("MOC") issued new guidelines on importer and exporter registration through Notification 35/2023, which replaces the previous Order 42/1954 and Export and Import Bulletin No. 6/2018. Under the new procedure, MOC has divided the importer and exporter registration structures into two categories: (i) for trading purposes and (ii) for non-trading purposes. Both categories require an import export registration certificate ("EIR").
Applicants must apply for the EIR through the TradeNet 2.0 system, and pay the application fee directly through the system. Upon receipt of the application, MOC will carry out an on-site inspection. If MOC is satisfied, it will grant approval after 15 working days.
Renewal applications for an EIR must be submitted six months before its expiry, as opposed to the previous requirement of three months. An EIR will be automatically cancelled if a renewal application is not made within one year after its expiration.
If a director of a company ("Company A") is also a director of another company (Company B) whose EIR has been suspended or cancelled, Company A will not be eligible to apply, renew or amend its EIR during the penalty period. An applicant may appeal the rejection, suspension or cancellation of an EIR to MOC within 30 days from the date of MOC's decision.
Myanmar's Internal Revenue Department ("IRD") has informed newly-registered companies, entities, and individuals to register for tax using the e-Registration Management System ("ERMS") commencing 23 May 2023.
Before the ERMS was put in place, taxpayers applying for a Taxpayer Identification Number ("TIN") had to manually submit the application to IRD's Central Taxpayer Service Unit ("CTSU"), and the processing of the application could take up to two weeks. With the new system, companies, entities and individuals may now apply for a TIN by registering via their accounts on the IRD website. Currently, only TINs may be registered through the ERMS. It does not extend to registrations for commercial tax and special goods tax.
On 12 May 2023, the Ministry of Education issued the new Private Education Law ("PEL"), which repeals the 2011 Private School Registration Law. Under the new PEL, private education institutions including technical and vocational training schools, whether operating for profit or not, as well as private education institution teachers, are now required to register with the new Central Supervisory Board ("CSB"). Moreover, the schools are now required to meet new sets of registration criteria including the submission to CSB documents evidencing (i) their ownership or lease of school premises; (ii) student and teacher living spaces (if any); and (iii) that the status of the campus is in good condition. The schools must also submit their curricula and teaching plans, emergency health care programmes, and school safety and fire prevention programmes.
It may also be necessary for some schools to obtain a separate permit or endorsement from the Myanmar Investment Commission.
Schools which are established prior to 12 May 2023 must register within one year and the registration is valid for five years.
On 1 May 2023, the Ministry of Planning and Finance ("MOPF") issued new set of rules regarding offshore remittances. These rules require all taxpayers including entrepreneurs, companies, organisations and individuals to provide tax documentation such as tax payment receipts or tax exemption letters issued by the Internal Revenue Department ("IRD") and tax clearance certificates, to the Authorised Dealer Banks when remitting offshore payments exceeding US$10,000 per transaction.
The taxpayers must now make Withholding Tax or Personal Income Tax payment first with IRD before making offshore remittances. This is a matter of question since this particular requirement conflicts with the Income Tax Regulations and Withholding Tax Notification 47/2018. Approval from the Foreign Exchange Supervisory Committee (FESC) is still required for any offshore remittances.
