Investors must repay tax exemptions if businesses shutdown: MIC

Investors must repay tax exemptions if businesses shutdown: MIC
Published 23 July 2019

Licensed investors shall repay the tax exemptions if they want to close their businesses, according to a press conference by the Myanmar Investment Commission (MIC).

Acting Director-General of the Directorate of Investment and Company Administration (DICA) said: “Some investors who have got the permits from the MIC no longer want to run their businesses. We revoke the permits after the repayment of tax exemptions. The reason they enjoy tax exemptions for the imports of machines. But it doesn’t turn five years. They are unable to return their permits after the expiry of this tax exemption period. The relevant divisions will scrutinize and calculate the amount of tax exemption for the to-be-closed businesses since the day of inception till termination.”

From 1988-1989 FY to May, 2019, Myanmar granted the permits to 1,836 foreign investments including Thilawa Special Economic Zone, worth 81.936 billion US dollars, according to the DICA. 

Only 1,489 businesses worth 67.223 billion US dollars are in operation. 

During 30 years, 338 foreign businesses worth 14.712 billion US dollars stopped their operations.

During this period, the MIC allowed over 22 billion US dollars of FDI for the oil and gas sector, over 21 billion US dollars for  the energy sector, the production sector for 

The oil and gas sector top the list of FDI with 27.94 per cent, followed by the energy sector, with 26.40 per cent, the production sector with over 13 per cent, the transport and communications with over 13 per cent, the real estate sector, with over six per cent, the hotel and tourism sector, with around four per cent, the mining sector, with over three per cent, other services sector, with over three per cent. 

The inflows of FDI into the agricultural sector, industrial real-estate sector and construction sectors see less than one per cent.