FAQs for Investors
What is the master plan of Pathein Industrial City?
Master Plan of Pathein Industrial City is 6,700 acres in total with 3 phases and will be developed Phase by Phase. Phase 1 (1,200 acres); which is Industrial Zone; is started to implement since 2016. Currently, 80% of infrastructure for Industrial Zone is completed and Phase 2 (2,000 Acres); Residential and Commercial Area; will be implemented after Phase 1 completion. Phase (3,500 Acres) will be further development for Recreation and Innovation.
What is the type of land from Pathein Industrial City?
The type of land from Pathein Industrial City is Industrial Granted Land.
Do foreigners have the opportunity/right to buy land in Myanmar?
Foreigners do not have the right to buy land in Myanmar. However, they can lease the land in long term (50+10+10years) with MIC (Myanmar Investment Commission) Permit or Endorsement.
What is the current Ayeyarwaddy labors market, including skilled and unskilled labors?
According to Population Census in Myanmar, Ayeyarwaddy Region is the second largest population in Myanmar with over 6 million people. Both of skilled and unskilled labours are mainly from Pathein, Myaung Mya and Latputta. With 94% of Ayeyarwaddy’s Literacy rate brings abundant skilled labours certainly for the reason of that Technological Universities, Computer Studies Universities, Vocational Training Centers are all around Ayeyarwaddy Region.
What are the tax exemption policy for investors in Pathein Industrial City?
- An investor will be exempted for corporate income tax for 5 years starting from commercial operation.
- Profit which is reinvested within one year will be exempted from Corporate Income Tax, including the profit reinvested in another similar type of business.
- Accelerated depreciation may be allowed to start from the date of commercial operation
- Income tax rates on foreign investors are the same as on resident citizens
- Right to deduct R&D costs from assessable income
- Customs duty and other local taxes for imports of machinery, equipment, materials, spare parts, construction materials that cannot be purchased locally will be exempted during the construction period and expansion period of the project.
- Customs duty and other local taxes for raw materials and semi-finished goods which export their entire production will be exempted.
- When goods are exported, refund of customs duty and other local taxes paid on the import of the raw materials and semi-finished goods of those goods that are exported.
What is tax rate for the purchase or lease of industrial land?
- Property Tax (miscellaneous tax, lighting tax, water tax and sanitation tax) is levied on the annual value of land or premises in question but subject to different tax rates and is payable once in a year. The rates and calculation of Property Tax depend on the purposes of use of the premises. The general user of the premises is liable to pay Property Tax on an annual basis once Pathein City Development Committee has already assessed the annual value of the premises.
- If the lease purports to be for a term of less than one year, the proper stamp-duty as a Bond (0.5%) for the whole amount payable or deliverable under such lease.
- If the lease purports to be for a term of not less than one year but not more than three years, the proper stamp-duty as a Bond (0.5%) for the amount or value of the average annual rent reserved.
- If the lease purports to be for a term in excess of three years, the proper stamp-duty as a (2%) for a consideration equal to the amount or value of the average annual rent reserved.
- If the lease does not purport to be for any definite term, the proper stamp-duty as a (2%) for a consideration equal to the amount or value of the average annual rent which would be paid or delivered for the first ten years if the lease continued so long.
- If the lease purports to be in perpetuity, the proper stamp-duty as a (2%) for a consideration equal to the one‐fifth of the whole amount of the rents which would be paid or delivered in respect of the first fifty years of the lease.
What are the restricted investment activities in PIC?
All investments which have received permits from Myanmar Invesment Commission (MIC) will be allowed in Pathein Industrial City.
How long does it take to get an MIC Permit and an Investment Endorsement? What is the fee for and MIC Permit and an Investment Endorsement?
- An MIC Permit will be appraised and, if approved, will be issued within 60 working days from the date when the investment proposal was accepted.
- An Investment Endorsement application will be appraised and, if approved, will be is-sued within 30 working days from the date when the investment proposal was accepted.
When is an Environmental Impact Assessment (EIA) definitely needed?
According to Myanmar Investment Law, EIA is needed for the investments which have a large potential impact on the environment and the local community. An EIA type project means the type of project prescribed under the Environmental Conservation Law, Rules and Environmental Impact Assessment Procedures. In these cases, an EIA is definitely needed. And investors shall need to obtain an MIC Permit and can only implement the investment activity after receiving the Permit from the MIC.
How does an investor get the right to use land?
An investor who obtains a Permit or an Endorsement under the Myanmar Investment Law can get a long-term land lease from private owners for private-owned land/building or from the relevant government organizations for the state-owned land/buildings. The initial leasing period is up to 50 years and it can be extended twice for 10 years respectively (a total of 20 years). Therefore, to get the right to use land, it is required that the investor undergo either the MIC Permit process or Endorsement application process.
How to continue after obtaining Endorsement?
After obtaining Endorsement, licenses or permits from relevant ministries, government agencies and organizations might be needed depending on the nature of the business or other requirements. Then five (5) copies of all approvals, licenses, permits, Joint Venture Agreements and the Land Lease Agreements shall be submitted to the MIC.
Before submitting proposals to the MIC, can an investor build the factory in that area?
Investors can start building the factory in the proposed area by negotiating with the relevant municipal committee and get an agreement from them.