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 Legal Update: Oil & Gas Blocks Tender 2019 – The new Draft Petroleum Law and Revised PSC
Reading Time: 3 minutesIn early 2019, the Ministry of Electricity and Energy (“MOEE”) announced that it would soon be calling a new round of international tenders for 18 onshore and 15 offshore oil and gas blocks expected to take place in early 2019. The tender round was subsequently delayed and is now anticipated to occur in Q3 or […]
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 […]
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 […]
Myanmar Tax Update: Myanmar IRD to Implement Integrated Tax Administration System Starting FY 2019-2020
Reading Time: 2 minutesThe Myanmar Internal Revenue Department (“IRD”) recently issued a notice with regard to the implementation of the Integrated Tax Administration System (“ITAS”). This is an electronic system that aims to modernize tax administration procedures in Myanmar starting FY 2019-2020. The aim of the ITAS is to implement an electronic-based system that will administer the tax […]