Myanmar has a vast
potential of land resources for further expansion of cultivable
land. Prevalence of different agro-ecological tracts has made it
possible to grow a multitude of over 60 crops ranging from tropical
ones to moderate temperature varieties.
Myanmar has a long
coast line and continental shelf Fishing ground which is relative
less exploited. Fresh water fisheries are made possible through vast
river systems, and heavy rain falls.
Myanmar is indeed
very rich in forest resources as the forest cover about 50 percent
of total and area. Teak forest of Myanmar are considered to be one
of the largest in the world. Moreover, there are many hardwood and
softwood species which can be exploited for processing value-added
Myanmar is well
endowed with mineral resources and has many famous mines. There are
many possibilities to work under foreign investment in various
fields of mining. Moreover, quality gems are also mined extensively.
Prospects for development of jewellery manufacturing and jade
curving are quite evident, and foreign investment in this areas of
business is a promising one.
Myanmar is a country
with substantial energy resources including crude oil, natural gas,
hydropower and coal. The country has the potential to easily meet
present and future energy needs at relatively low cost. Transforming
the energy sector into foreign exchange earnings could well be a
promising one in the future.
Myanmar is rich not
only in natural resources but also in traditional and cultural
heritage, like the city as Bagan, Mandalay, Sagaing, Myauk-Oo and
etc., Myanmar also has a variety of natural places such as
snowcapped mountain in the north, unspoiled beaches in the west and
south and scenes of exotic beauty all over the country. Tourism
related business could be a promising one.
manpower and skilled labour are available. Myanmar people are
industrious skillful and quick learning, thus representing a strong
The Labour cost in
Myanmar is quite low compared to other neighboring countries. In the
private sector it is usually fixed on mutual agreement between the
employer and employee.
A labour contract may
contain essential information which include job description, working
venue, salary and wages, duration of contracts, terms of trial
period and terms of termination. The Department of Labour can help
the foreign enterprises in scrutinizing work rules and employment
contracts so that they may be in conformity with the provisions of
the existing Myanmar Labour Law.
A flat rate of 30% is
applicable to enterprises operating under the Union of Myanmar
Foreign Investment Law and those formed under the Myanmar Companies
For a non-resident
foreigner (including a branch company), income tax is payable at 35%
or at progressive rates form 5% to 40% whichever is greater.
The income form
“salaries” other than income of non-resident foreigner the tax is
computed at progressive rates of 3% to 30%.
Payments on income
such as interest, royalty and on contracts are subject it
withholding tax as shown below.
ownership of Land
and persons are not allowed to own land Myanmar. However, land nay
be acquired from respective Ministers on long renewable lease up to
Class of income
Rate applicable to resident citizens
and resident foreigners
Rate applicable to
Royalty for use of licenses,
trademarks, parent rights etc.
Payments to contracts made by Government Organizations,
Municipalities and Co-operative Societies
Incentives and Guarantees
A tax holiday period of (3)
years inclusive of the year the enterprise commences its commercial
operation and also to a reasonable period upon application, provided
that MIC, in the interest of the State, considers appropriate. In
addition, MIC may grant one or all of the following exemptions and
a. Exemption or relief from
income tax on reinvest profits within one year;
b. Accelerated depreciation rates approved by the Commission;
c. Fifty per cent relief from income tax on profits accrues from
d. Right to pay income tax on behalf of foreign experts and
technicians employed in the business and right to deduct such
payment from the assessable income;
e. Right to pay income tax on the income of foreign employees at the
rates applicable to Myanmar nationals;
f. Right to deduct R & D expenditures from the assessable income
g. Right to carry forward and set off losses up to three consecutive
years from the year the loss is sustained.
h. Exemption or relief from customs duty or other internal taxes of
both on import of machinery, equipments, machinery components, spare
parts and materials used in the business during the period of
i. Exemption or relief of customs duty or other internal taxes on
imported raw materials for the first three years of commercial
operation after completion of construction.
The FIL provides the State
Guarantee that an enterprise permitted by the MIC under the FIL
shall not be nationalized during the permitted period or the
extended period (if any). It also provides repatriation of profit
after deduction of all taxes due.