As part of overall efforts to improve the business environment in Myanmar, the Union Government recently announced changes to the nation’s fiscal year calendar, while the Myanmar Investment Commission (MIC) has expanded eligibility for MIC benefits to companies currently operating in the country.
Following Union Government Meeting 17/2017 on September 7, 2017, the Myanmar government has decided to change the country’s fiscal year calendar from the previous system, which ran from April 1 to March 31, to a new system, which runs from October 1 to September 30. The aim of this change is to optimize national budgetary management and revenue collection. The change will take effect in the 2018-2019 fiscal year.
Separately, on October 10, 2017, the MIC issued Notification 84/2017: Announcement of Applicable Tax Exemption and Relief, in order to promote investments by providing added benefits to investment businesses currently operating in Myanmar. The notification allows for:
1. investment businesses without an MIC permit or MIC endorsement to apply for endorsement benefits; and
2. investment businesses that hold an MIC endorsement to apply for tax exemptions and relief from other internal taxes besides income tax.
Although a list of criteria for eligible companies was not disclosed in the notification, it is expected that the MIC will consider endorsement applications on a case-by-case basis, taking into account factors such as investment amount, company location, and environmental and social impacts.