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On 24 March 2016, the Myanmar Investment Commission ("MIC") issued Notification No.26/2016 governing the types of business activities which are restricted to foreign investment under the Myanmar Foreign Investment Law. Notification No.26/2016 is intended to supersede Notification No.49/2014 issued on 14 August 2014, providing a new "negative list" of restricted sectors.
Click here to read our client update outlining the key changes introduced by Notification No.26/2016.
The Central Bank of Myanmar ("CBM") granted 4 new bank licences to foreign banks – Vietnam's Bank for Investment and Development of Vietnam, Taiwan's E.SUN Commercial Bank, South Korea's Shinhan Bank and India's State Bank of India, on 4 March 2016 as part of its second round of foreign bank licences. The 4 banks join 9 other licensed foreign banks including OCBC, UOB and SMBC, which have already opened their foreign bank branches in Myanmar as part of the first round of licences awarded in 2015. The CBM's recent decision demonstrates a further relaxation of the country's banking sector to foreign participation. However, it remains to be seen whether the CBM would be willing to further liberalise this sector by expanding the current limited scope of banking activities allowed to foreign bank branches in Myanmar.
From 1 April 2016, special commodities such as cigarettes, alcohol, teak, petrol and most vehicles above 1,800cc will be subject to special goods tax in accordance with the rates stipulated by the Internal Revenue Department ("IRD"). For imported special commodities, the special goods tax will be levied based on the landed costs. On the other hand, for special commodities manufactured within Myanmar, the special goods tax is levied on the higher of the factory selling price or the selling price as estimated by the IRD. This new special goods tax regime in Myanmar serves to clarify the specific tax rates applicable to special commodities and is comparable to the special dutiable goods or excise tax regimes in neighbouring ASEAN countries.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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Rajah & Tann
Myanmar Company Limited
Room No. 408(A), Prime Hill Business Square, No. 60,
Shwe Dagon Pagoda Road, Dagon Township,
Yangon, Myanmar
http://mm.rajahtannasia.com
Contacts: Chester TohDirectorD +65 62320220chester.toh@rajahtann.comJainil Bhandari DirectorD +65 62320601jainil.bhandari@rajahtann.com| Rajah & Tann Asia is a network of legal practices based in Asia. |
Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client. |
This update is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this update. |
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