On 5 October 2016, the Amyotha Hluttaw (the second House of Parliament) approved the latest draft of the Myanmar Investment Law. Because both houses of parliament now agree on the law, there is no need for the law to go to the Union Parliament, and it will go directly to the President’s Office for signing into law.
This law introduces significant changes to the foreign investment regime in Myanmar, in particular a new type of approval called an “MIC Endorsement”, which will provide similar benefits to the current MIC Permit, and will allow investors long term leases. It is not known if this will be easier to obtain than the current MIC Permit. However, the automatic tax exemption will be revoked, and tax exemptions will depend on the location of the investment within different zones within Myanmar, with a maximum income tax exemption of 7 years in less developed areas, an increase from the previous 5 year exemption. MIC Permits will still be required for certain businesses. Interestingly, local skilled employee ratios will now be dispensed with, and there are additional guarantees against expropriation.