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Cards by Country MYANMAR , FREE Index cards by country MYANMAR SPECIAL ECONOMIC ZONES, FREE ZONES, BUSINESS DEVELOPMENT ZONES, PROMOTION ZONES Index cards realized by the University of Reims, France Conception: F. Bost Data collected by F. Bost and D. Messaoudi Map and layout: S. Piantoni WFZO Index cards - Myanmar Oicial Terms for Free Zones Year of promulgation of the irst text Special economic zones, Free Zones, of law concerning the Free Zones Business Development Zones, Promotion Zones 2011 Possibility to be established as Exact number of Free Zones Free Points 3 No TABLE OF CONTENTS General information ........................................................................................................................................................................4 List of operating Free Zones .........................................................................................................................................................5 Contacts ...............................................................................................................................................................................................7 Free Zones Web sites selection ...................................................................................................................................................7 2 WFZO Index cards - Myanmar CHINA Pokhara Kathmandu BHUTAN NEPAL Guiyang Patna CHINA Kunming BANGLADESH INDIA Dhaka MYANMAR Nanning Kolkata Chittagong Mandalay VIETNAM Taunggyi Hanoi Hon Gai Bhubaneshwar Sittwe 02 LAOS Thanh Hoa Vientiane Vishakhapatnam Bassein Rangoon Phitsanulok Khon Kaen Hue Da Nang 01 THAILAND Nakhon Ratchasima 03 Bangkok Play Cu Tavoy Batdambang Qui Nhon CAMBODIA Nha Trang Port Blair Phnom Penh Ho Chi Minh City Surat Thani FREE ZONES IN MYANMAR01 150 km International borders Elevations (meters) Cities 0 200 500 1000 Free Zones 01 - Thilawa SEZ 02 - The Kyaukpyu Special Economic Zone 03 - Dawei SEZ © Sébastien Piantoni - Conception: François Bost EA 2076 Habiter - University of Reims - 2017 Map Projection: WGS 1984 3 WFZO Index cards - Myanmar GENERAL INFORMATION Number of free 3 Special Economic Zones (only one is operative in 2017: Thilawa SEZ. The two others, zones Kyaukpyu and Dawei, are in progress). Two others are announced for the future: Kokang and Myawaddy. A SEZ may have several zones: Free Zone, Business Development Zone, Promotion Zone and other Zones. N. of act. comp. in 59 approved companies in 2016 (Thilawa SEZ only). Free Zones http://www.myanmarthilawa.gov.mm/list-investors Main sectors of Steel, fertilizer, power and petrochemical plants, textile, manufacturing and high-tech activity industries, etc. Total job numbers No information Distribution of No information investors Exports and sales No information. Free zones contri- Dawei SEZ: The zone is expected to contribute up to 5% of Myanmar's GDP by 2045. bution to the nat. eco. Corporate Tax and The new MSEZL ofers the following incentives to investors within a SEZ: Incentives • 100% Foreign Ownership; • The right to lease land for 50 years, with a 25 year renewable period; • Income tax exemption for the irst seven years from the commencement of the com- mercial operation in “Free Zones” and for “Free Zone Businesses”; • the irst 5 years income tax exemption for investment business in “the Promotion Zones” or other businesses in the boundary of the SEZ, from the commencement of the commercial operation; • for the investment business within the Free Zone and the Promotion Zone, there shall be 50% relief on the income tax rate stipulated under the existing law for the second ive years; for the investment business within the Free Zone and the Promo- tion Zone there shall be ifty percent relief of the income tax rate stipulated by the existing law for the third ive years on the proit which is obtained from the business if it is reinvested within one year in the business as a reserve fund; • No customs duties in “Free Zones”; and for materials and equipment used during construction and exemptions or relief for other imported materials or equipment; • “Investors” will pay customs on raw materials and goods used for production but can apply for reimbursement if the inished goods are used in the SEZ; • The right to carry forward losses for ive years after they were sustained; • Certain reliefs and exemptions from VAT and Commercial tax; such as the investor of the Free Zone may be given exemption of the commercial tax or value –added tax; the investor may apply for the exemption of commercial tax or value-added tax for manufactured goods which will be exported ; • Investor of the Free Zone may apply the exemption for import tax or value –added tax for the goods imported from the local or Promotion Zone to the Free Zone; • Except for goods which are prohibited and restricted by the Union Government, the goods exported directly or indirectly or re-exported from the SEZ are entitled to exemption of taxes and other assessments; • Developers and investors may apply the exemption of income tax for the dividends distributed to each shareholders based on the proits accrued locally for which tax has been paid; • Right to open foreign currency accounts with approved banks; • It is guaranteed that the investment business in the SEZ shall not be nationalized during the permitted period. 4 WFZO Index cards - Myanmar Source: http://www.myanmarlegalservices.com/wp-content/uploads/pdf/Doing-Business-in-Myan- mar(ATC091016)_(2091131_1).pdf http://www.dica.gov.mm/en/special-economic-zones Free Zone law The Myanmar SEZ Law 2011 http://www.dica.gov.mm/sites/dica.gov.mm/iles/documentiles/myanmarspecialecono- miczonelaw.pdf Myanmar Special Economic Zones Law. The Pyidaungsu Hluttaw Law No. 1/20148th Waning of Pyatho, 1375 M.E 23rd January 2014 http://www.burmalibrary.org/docs17/2014-Myanmar-SEZ_Law-en.pdf LIST OF OPERATING FREE ZONES 1 - Thilawa SEZ Located in Myanmar’s southern Yangon region and shares its border with Dawei. Location http://www.myanmarthilawa.gov.mm/geographic-advantage Surface Area - Contacts Thilawa Special Economic Zone Management Committee No. 1234, Thanlyin Township, Yangon, The Republic of the Union of Myanmar Tel: (01) 789 231 - 789 239 - Fax: (01) 789 239 One Stop Service Center: Tel: (01) 2309082, 2309083 - Fax: (01) 2309084 Email: [email protected] URL : www.myanmarthilawa.gov.mm http://www.myanmarthilawa.gov.mm/ Observations Operative since 2016 (59 approved companies in late 2016). The SEZ project is being developed by Myanmar and Japanese investors with Myanmar owning 51 percent and Japan 49 percent. The Thilawa SEZ involves construction and development of textile, manufacturing and high-tech industries, as well as a deep-sea port. It was started in November 2013 and Myanmar-Japan Thilawa Development Limited (MJTD) was established to develop the project. Source: http://www.myanmarlegalservices.com/wp-content/uploads/pdf/Doing-Business-in-Myan- mar(ATC091016)_(2091131_1).PDF Business priorities : • Trading; • Real estate development including housing, hotels, shopping malls; • Engineering and design; • Warehousing and logistics services; • Research and development services; • Computer software services; • Information enabled services such as back-oice operations, call centers, content development or data processing, human resource services, insurance claim processing, legal data bases, medical transcription, payroll, remote maintenance, revenue accoun- ting support centers and website services, animation or graphic information system services; • Distribution services including wholesale and retail services; • Financial services; • Professional services excluding legal and account services; • Long term/short term rental/leasing services; • Other business services including consultation; • Construction and related services; • Educational services; 5 WFZO Index cards - Myanmar • Environmental protection services; • Hospital and other human health services; • Tourism and travel related services; • Recreational and entertainment; • Cultural and sporting services; • Transport services and services auxiliary to all mode of transport. http://www.myanmarthilawa.gov.mm/types-business 2 - The Kyaukpyu Special Economic Zone Location Located along the central western coast of Myanmar on Ramree Island. Surface Area - Contacts BEAC Oice, Kyauk Phyu SEZ Management Committee, Ministry of Rail Transportation, Building No. (29), Nay Pyi Taw, Myanmar Tel.: (+95-67) 405032 Email: [email protected], [email protected] http://kpsez.org/ Observations Not yet operative in 2017 The Kyaukpyu Special Economic Zone serves a port and an oil and gas terminal and is western end of pipelines linking Myanmar and China. There are further plans for the SEZ. A Singapore irm has been appointed consultant. Construction is expected to begin in 2016. This project is attracting several Chinese investors due to its favourable trade loca- tion between China and India. Source: http://www.myanmarlegalservices.com/wp-content/uploads/pdf/Doing-Business-in-Myan- mar(ATC091016)_(2091131_1).PDF 3 - Dawei SEZ (DSEZ) Nabule Village, Dawei District, Tanintharyi Region, The Republic of the Union of Myanmar GPS coordinates N 14.274251°, E 98.068808° Location Approximately 138 km to the Myanmar-Thailand border Baan Phu Nam Ron, 630 km to Yangon, 19 km to Dawei Airport and Dawei Downtown, 20 minute to Dawei IE Port http://www.daweiindustrialestate.com/page_a.php?cid=86&cname=Project%20Overview Surface Area Total: 27 sq.km or 2,700 Hectares Available for Lease: 20 sq.km or 2,000 Hectare Contacts
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