Myanmar Legal Update: Deployment of Employees in Myanmar

Reading Time: 2 minutesEmployment law in Myanmar is still a work in progress. Rather than a single labour code, a patchwork of labour legislation covers different aspects of the employment relationship. Currently, the rules and regulations regarding foreign workers are regularly changing and requirements by the authorities may vary from application to application. We understand that the Ministry […]

Myanmar Tax Update: Significant Changes Under the New Tax Administration Law

Reading Time: 2 minutesOn 7 June 2019, the Union Parliament (“Pyidaungsu Hluttaw”) enacted Law No. 20 otherwise known as the Tax Administration Law (“TAL”). This TAL is one of the major pieces of tax legislation being introduced in Myanmar as part of the Internal Revenue Department’s (“IRD”) tax reform program. This Law aims to modernize and provide guidance […]

Myanmar Legal Update: Foreign Companies Allowed to Export Certain Local Products

Reading Time: 2 minutesOn 6 June 2019, the Ministry of Commerce (“MOC”) issued Notification No.24/2019 (the “Notification”) that allows foreign companies to export certain local products by exercising powers under Section 13 (b) of the Export and Import Law. In order to raise the quality of Myanmar exports, boost international demand for local goods and raise earnings for […]

Myanmar Legal Update: INGOs & NGOs Conducting MFI Activities Must Be Registered as Companies and Re-Apply for Microfinance Business License

Reading Time: 2 minutesOn 4 June 2019, the Financial Regulatory Department (“FRD”) issued a letter (“Letter”) directing International Non-Governmental Organizations (“INGOs”) and Non-Governmental Organizations (“NGOs”) which carry out microfinance activities to register as companies and re-apply for Microfinance Business Operation Licenses (“MFBOL”). The FRD had previously issued MFBOLs to 3 INGO groups, 16 NGO groups, 47 foreign companies, […]

Myanmar Legal Update: New Set of Interest Rates for Microfinance Institutions

Reading Time: 2 minutesAmong recent developments happening in the banking and finance sector, the Microfinance Business Supervisory Committee (“MBSC”) issued Directive 1/2019 (the “Directive”). This Directive lays down a new set of interest rates which shall be followed by all microfinance institutions operating in Myanmar. Under the new Directive, the interest rate for microfinance loans shall be charged […]

Myanmar Tax Update: Annual Tax Compliance Reminder for FY 2018-2019

Reading Time: 2 minutesOur Tax Team wishes to remind you of the fast-approaching deadline for submission of your annual Corporate Income Tax (“CIT”) return, annual Commercial Tax (“CT”) return, and annual Personal Income Tax (“PIT”) Salary Statement. For Myanmar taxpayers who follow the financial year ending 31 March 2019 (“FY 18-19”), all annual tax returns must be submitted […]

Myanmar Tax Update: IRD Confirms Changes to the Financial Year for Cooperatives and Private Enterprises

Reading Time: 2 minutesThe Myanmar Internal Revenue Department (“IRD”) recently issued a Letter confirming changes to the tax year of reporting for cooperatives and private enterprises that will take effect from 1 October 2019. This announcement brings the financial year into line with the State’s new budget year as mentioned in the 2018-2019 Union Taxation Law. Previously, only […]

MYANMAR: New Gambling Law Permits Casinos to Operate in Myanmar

Reading Time: 3 minutesFollowing several discussions on significant changes being proposed in Myanmar in relation to the gambling landscape, the Pyidaungsu Hluttaw (Myanmar parliament) finally enacted The Gambling Law (“GL”) on 7 May 2019. The enactment of the GL heralds positive news for investors looking to invest in the “casino” business as the legal avenues for operating such establishments […]

ASEAN Employment Legal Update

Reading Time: 9 minutesDFDL’s Employment Practice Group is dedicated to advising clients on employment and labor issues and preparing human resources documentation that is compliant with local laws.  Our employment team’s in-depth knowledge of the law and practices in the countries where we operate allows us to provide specialized, tailored, and practical advice on issues that arise in […]

Foreign Participation in Myanmar Banking Sector

Reading Time: 5 minutesABSTRACT: Any reform aiming to increase foreign investment in a country can only be accomplished when there is uniformity between the legal provisions and the practices followed by the regulatory authorities. Adherence to legacy legislation and erroneous interpretation of the new laws would erode the objective of the reforms, leading Myanmar off the path toward greater development and progress.   With the doors of the banking industry remaining shut […]

Myanmar Tax Update: The Ministry of Planning and Finance Removes 2% Advance Income Tax Exemption on Exports for Taxpayers Under the LTO and MTO1

Reading Time: 2 minutesThe Myanmar Ministry of Planning and Finance (“MOPF”) recently issued Notification 38/2019 dated 8 April 2019 removing the 2% advance income tax exemption on exports previously granted to taxpayers under the Large Taxpayers Office (“LTO”) and Medium Taxpayers Office No. 1 (“MTO 1”) effective from 1 May 2019. The 2% advance income tax was introduced […]