The Special Economic Zone Law was enacted on 23 January 2014. This represents an important step forward in developing export oriented industries as the SEZ Law looks to not only provide incentives for export oriented industries but also for the much needed supply chain industries to support the export oriented industries.
Incentives for investors under the Myanmar SEZ Law include:
• Income tax holidays for the first seven years starting from the date of commercial operation in respect of those investment businesses operated in exempted zone or exempted zone businesses
• Income tax holidays for the first five years starting from the date of commercial operation in respect of those investment businesses operated in a business promoted zone or other business in a promoted zone.
• 50% income tax relief for the investment business operated in an exempted zone and a business promoted zone for the second five year period
• For the third five year period, 50% income tax relief on the profits of the business if they are maintained for re-investment in a reserve fund and re-invested therein within one year after the reserve is made
• Exemption on customs duty and other taxes for raw materials, machinery, equipment and certain types of goods imported for investors in exempted zones, whereas for investors in prompted zones, exemption on custom duty and other taxes for the first five years in respect of machinery and equipment imported which are required for construction starting from the date of commercial operation, followed by 50% relief of custom duty and other taxes for a further five years
• Carry forward of loss for five years from the year the loss is sustained