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In 2016, the Directorate of Investment and Company Administration ("DICA") reduced the company registration fees for private companies from MMK 1,000,000 to MMK 500,000 in order to facilitate business and ensure easier incorporation. In March 2018, the DICA announced that the registration fee for private companies would be further reduced from MMK 500,000 to MMK 250,000 with effect from 1 April 2018.
In March 2018, the Myanmar Investment Commission ("MIC") issued standard criteria for the types of business activities which require recommendations from the Ministry of Industries, the Ministry of Information ("MOI") and the Ministry of Home Affairs, subject to MIC Notification 15/2017 (i.e. list of restricted and prohibited business activities).
For example, FM radio program broadcasting enterprises and cable TV enterprises must only have 30% foreign equity, and foreign investors must obtain permission from the Union Government and feedback from MOI.
Businesses engaged in pharmaceutical production with the use of narcotic drugs and psychotropic substances, and distribution of their products must meet certain criteria such as: (i) Myanmar citizenship of proprietors; (ii) possession of sufficient land; and (iii) location of workplace or industry outside the suburbs.
Detailed criteria can be found here.
The Internal Revenue Department rolled out its online tax payment system in February 2018. The online system aims to reduce delays resulting from manual filing and clearing of checks with local banks. It will also streamline the tax payment procedures with the Myanmar Economic Bank.
The online tax payment system will apply to taxpayers registered under the Large Taxpayers Office, the Medium Taxpayers Office, and those registered under township tax offices. The taxes covered by the online payment system are: Income Tax (Corporate, Capital Gains, and Personal), Commercial Tax, Special Goods Tax, and Withholding Tax. Stamp duty is not covered by the online payment system.
The use of the online tax payment system is optional at the moment as it is still at the pilot stage.
The latest version of the Myanmar Trademark Bill ("Bill"), published in the third quarter of 2017, was submitted to Parliament in January 2018 for the Upper House's consideration. The Bill introduces a first-to-file trademark system in Myanmar, where a first-to-use is currently adopted.
One of the provisions of the Bill relates to the re-registration of existing trademarks. Existing trademark owners who have recorded their trademark rights at the Office of Registration of Deeds will be required to file new applications to enjoy trademark protection under the new trademark framework. Chapter 7 of the Bill sets out the information and documents required for filing trademark applications, such as: (i) the name and address of the person or legal entity applying for registration; (ii) clear and complete representation of the mark; and (iii) names and types of goods and services requested for registration in accordance with international trademark classification. Each registered trademark will be valid for an initial term of 10 years, renewable for an additional term of 10 years. Chapter 6 of the Bill sets out the types of Trademark which cannot be registered.
The publication of the Bill, alongside the Patents Bill, Copyright Bill, and the Industrial Designs Bill marked the first development in the intellectual property sphere initiated by the National League of Democracy government since it assumed office in April 2016.
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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