Myanmar Investment Law

Chapter VIII

 Submission of Proposal

  1. The investor shall submit a proposal to the Commission and invest after

receiving the Permit for the following businesses stipulated in the rules;

(a)      investment businesses that are essential to the Union strategy;

(b)     large capital intensive investment projects;

(c)      projects which are likely to cause a large impact on the environment

and the local community;

(d)     investment businesses which use state-owned land and building ;

(e)      investment businesses which are designated by the government to

require the submission of a proposal to the Commission.


Chapter IX


Submission of Endorsement Application

  1. No investor requires to submit a proposal to the Commission for other

investment businesses except investment businesses stipulated under section


  1. However, in order to enjoy the rights to use land under Chapter XII, and

all or more than or any exemptions and reliefs under sections 75, 77 and 78,

an endorsement application must be submitted in the stipulated form to the

Commission office .


  1. When submitting the endorsement application, all approvals or licenses or

permits or similar documents issued by the relevant organizations according

to the type of business have to be attached.


  1. The Commission may accept after scrutinizing the endorsement application

submitted under section 37, if it is complete and allow resubmitting the

endorsement application after corrections are made, if it is not complete.

  1. The following investments businesses shall be stipulated as the prohibited


(a)      investment businesses which may bring or cause the hazardous or

poisonous wastes into the Union;

(b)     investment businesses which may bring technologies, medicines, flora

and fauna and instruments which are still being tested abroad or which

have not been obtained approvals to use, plant and cultivate, except

the investments which made for the purpose of research and


(c)      investment businesses which may affect the traditional culture and

customs of the ethnic groups within the Union;

(d)     investment businesses which may affect the public;

(e)      investment businesses which may cause an enormous impact to the

natural environment and ecosystem;

(f)      investment businesses which manufacture goods or provide services

that are prohibited under the applicable laws.

  1. The following types of investment businesses shall be stipulated as restricted


(a)      investment businesses allowed to carry out only by the Union;

(b)     investment businesses that are not allowed to carry out by foreign


(c)      investment businesses allowed only in the form of joint venture with

any citizen owned entity or any Myanmar citizen; and

(d)     investment businesses to be carry out with the approval of the relevant


Chapter XII


Rights to Use Land

  1. (a) An Investor who obtains permit or endorsement under this Law has

the right to obtain a long-term lease of land or building from the

owner if it is private land or building, or from the relevant government

departments or government organization if it is land managed by the

government, or land or building owned by the Union in accordance

with the stipulations in order to do investment. Citizen investors may

invest in their own land or building in accordance with relevant laws.

(b)     Foreign investor may lease land or building either from the

government or government organizations or from owners of private

land or building from commencing on the date of receipt of the permit

or endorsement of the Commission up to an initial period of (50) years

in accordance with the stipulation.

(c)      After the expiry of the term of the right to use land or building or the

period of right to lease of land or building permitted under subsection

(b)     a consecutive period of (10) years and a further consecutive

period of (10) years extension to such period of lease of land or

building may be obtained with the approval of the Commission.

(d)     The investor shall register the land lease contract at the Office of

Registry of Deeds in accordance with the Registration Act.

(e)      The Government may grant more favorable terms and conditions for

the lease of land and the use of land by Myanmar citizen investors.

(f)      The Commission shall obtain the approval of the Pyidaungsu Hluttaw

through the Government, when granting an extension to investor for

the rights to lease land or building and the rights to use land or

building in this Law, in less developed and remote region for the

purpose of the development around the Union.

Chapter XVI


Responsibilities of Investors


  1. The Investor:

(a)      shall respect and comply with the customs, traditions and traditional

culture of the ethnic groups in the Union;

(b)     shall establish and register a company or sole proprietorship or legal

entities or branches of such entities under the Laws in order to invest;

(c)      shall abide by the terms and conditions, stipulations of special

licenses, permits, and business operation certificates issued to them,

including the rules, notifications, orders, and directives and

procedures issued by this Law and the applicable laws, terms and

conditions of contract and tax obligations;

(d)     shall carry out in accordance with the stipulations of the relevant

department if it is, by the nature of business or by other need, required

to obtain any license or permit from the relevant Union Ministries,

government departments and government organizations, or to carry

out registration;

(e)      shall immediately inform to the Commission if it is found that natural

mineral resources or antique objects and treasure trove are not related

to the investment permitted above and under the land on which the

investor is entitled to lease or use and not included in the original

contracts. If the Commission allows, the investor shall continue to

carry out the investment in such land, and if not allowed, the investor

shall transfer and carry out, by obtaining the permission, at the

substituted place which is selected and submitted by him;

(f)      shall not make any significant alteration of topography or elevation of

the land on which he is entitled to lease or to use, without the approval

of the Commission;

(g)     shall abide by applicable laws, rules, procedures and best standards

practiced internationally for this investment so as not to cause

damage, pollution, and loss to the natural and social environment and

not to cause damage to cultural heritage;

(h)     shall list and keep proper records of books of account and annual

financial statement, and necessary financial matters relating to the

investments performed by permit or endorsement in accordance with

internationally and locally recognized accounting standards;

(i)      shall close and discontinue the investment only after payment of

compensation to employees in accordance with applicable laws for

any breach of employment contracts, closure of investment, sale and

transfer of investment, discontinuation of investment, or reduction of


(j)      shall pay wages and salaries to employees in accordance with

applicable laws, rules, procedures, directives and so forth during the

period of suspension of investment for a credible reason;

(k)     shall pay compensation and indemnification in accordance with

applicable laws to the relevant employee or his successor for injury,

disability, disease and death due to the work;

(l)      shall supervise foreign experts, supervisors and their families, who

employ in their investment, to abide by the applicable laws, rules,

orders and directives, and the culture and traditions of Myanmar;

(m)    shall respect and comply with the labor laws;

(n)     shall have the right to sue and to be sued in accordance with the laws;

(o)     shall pay effective compensation for loss incurred to the victim, if

there are damage to the natural environment and socioeconomic losses

caused by logging or extraction of natural resources which are not

related to the scope of the permissible investment, except from

carrying out the activities required to conduct investment in a permit

or an endorsement.

(p)     shall allow the Commission to inspect in any places, when the

Commission informs the prior notice to inspect the investment;

(q)     shall take in advance permit or endorsement of the Commission for

the investments which need to obtain prior approval under the

Environmental Conservation Law and the procedures of

environmental impact assessment, before undertaking the assessment,

and shall submit the situation of environmental and social impact

assessment to the Commission along the period of activities of the

investments which obtained permit or endorsement of the


Chapter XVIII


Exemptions and Reliefs


  1. The Commission shall, for the purpose of supporting the development of the

Union by allowing investment in sectors which need to be developed, and

for the proportionate development of Regions and States, scrutinize and may

grant one or more tax exemptions or reliefs if the investor applies for such

exemptions or reliefs.


  1. (a) With respect to the income tax exemption , designated the less

developed regions as Zone (1) , the moderate developed regions as

Zone(2),and the adequate developed regions as Zone (3), the

Commission shall, with the approval of the Government , issue a

notification and may grant income tax exemptions to investment

businesses in Zone(1) for a period of 7 consecutive years including

the year of commencement of commercial operation, investment

businesses in Zone (2) for a period of 5 consecutive years including

the year of commencement of commercial operation ,and investment

businesses in Zone(3) for a period of 3 consecutive years including

the year of commencement of commercial operation.


(b)     With the approval of the Government, the Commission may change

the designation of the zones from time to time depending on the

development of the respective regions.


(c)      Income tax exemptions shall be granted only for the sectors specified

by the Commission in the notification as the sectors to promote the