Law, Regulations and Incentives
1. Governing Law
Before proceeding with any investment in the Thilawa SEZ, study and understand the Myanmar Special Economic Zone Law, enacted on 23rd January 2014. This law sets the legal framework for investment, defining your rights, obligations, and the boundaries within which you must operate.
http://myanmarthilawa.gov.mm/sez
2. SEZ Laws and Regulations
To operate smoothly in Thilawa SEZ, investors must comply fully with all applicable SEZ regulations. These regulations cover critical operational areas:
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Company Registration – Legal process to establish a company in Thilawa SEZ.
https://www.myanmarthilawa.gov.mm/company-registration -
Construction & Fire Safety – Regulations for building construction, permits, and safety.
https://www.myanmarthilawa.gov.mm/building-construction-fire-safety -
Customs – Rules for import/export and forwarding goods.
https://www.myanmarthilawa.gov.mm/procedure-forwarding-goods -
Employment – Labor registration and compliance.
https://www.myanmarthilawa.gov.mm/employment-registration -
Environment – Environmental protection procedures (ECPP, IEE, EIA).
https://www.myanmarthilawa.gov.mm/environmental-protection-ecpp-iee-and-eia -
Factory Operation – Licensing and operational compliance for factories.
https://www.myanmarthilawa.gov.mm/factory-operation -
Tax – Registration and tax obligations
https://www.myanmarthilawa.gov.mm/tax-registration
Incentives
Investors may access benefits and incentives provided under:
- Myanmar Special Economic Zone Law
- Myanmar Investment Law
Investment Inside SEZ (Myanmar Special Economic Zone Law (2014) |
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TAX INCENTIVES | Regulator of TSEZ Management Committee (TSMC) , One-stop Service Centre (OSSC) | |||
| Free Zone/ supporting Industry (Export at least 75% of gross production) | Promocion Zone | Business Operating License | ||
| Investment | Minimum Investment | 750,000 USD | 300,000 USD | |
| Corporate Income Tax | Tax Exemption | First 7 years from Commercial Operation (*) | First 5 years from Commercial Operation (*) | Not Exempted |
| 50% Tax Relief | Second 5 years | Second 5 years | Not Exempted | |
| 50% Tax Relief for Reinvestment | Third 5 years | Third 5 years | Not Exempted | |
| Dividend | Exempted | Exempted | Not Exempted | |
| Commercial Tax | Land Rent | Exempted | Not Exempted | Not Exempted |
| Imports of Capital Goods for Operational Use (Machinery, Construction Materials, Vehicles) | Exempted | Exempted (5 years from Investment Permit) + 50% Tax Relief (second 5 years) | Follow Outside SEZ Law | |
| Imports of Raw Materials | Exempted | Not Exempted But refunded if exported | Follow Outside SEZ Law | |
| Imports of Merchandise for Trading | Exempted | Not Exempted | Follow Outside SEZ Law | |
| Custom Duties (Depends on Commodities) | Imports of Capital Goods for Operational Use (Machinery, Construction Materials, Vehicles) | Exempted | Exempted (5 years from Investment Permit) + 50% Tax Relief (second 5 years) | Follow Outside SEZ Law |
| Imports of Raw Materials | Exempted | Not Exempted But refunded if exported | Follow Outside SEZ Law | |
| Imports of Merchandise for Trading | Exempted | Not Exempted | Follow Outside SEZ Law | |
| Land Rent | Commercial Tax (5%) | Exempted | Not Exempted | Not Exempted |
| Stamp Duty (Yearly Rent x 2%) | Not Exempted | Not Exempted | Not Exempted | |
| Fees & Charges of Utilities & Others Before Commercial Operation (*) | Commercial Tax (5%) | Exempted | Not Exempted | Not Exempted |
| Fees & Charges of Utilities & Others After Commercial Operation (*) | Commercial Tax (5%) | Exempted | Exempted first 5 years from Commercial Operation (*) | Not Exempted |