YANGON, March 2 (Xinhua) -- Myanmar Investment Commission (MIC) announced on Thursday three zones where income tax for investment will be exempted or relaxed in accordance with their development status.
According to the commission, less-developed regions are designated as Zone-1, while relatively developed regions as Zone-2 and developed regions as Zone-3. Investment in the less developed region will enjoy more income tax exemption.
Under the new investment policy, the investors will enjoy income tax exemption for a consecutive 7 years starting from the year of commercial operation for investment in Zone-1, while those will do so for a consecutive 5 years by investing in Zone-2 and 3 years for investment in Zone-3.
Most of the investment are in the developed regions such as Yangon and Mandalay, while the less developed ones are Shan state and Sagaing region.
However, the investors are urged to invest in the government's promoted sectors to enjoy the tax privileges, U Than Aung Kyaw, Deputy Director General of Directorate of Investment and Company Administration (DICA), told Xinhua.
The regulations of the new investment law will be finalized in this month and the law will take effect from April this year along with the tax privileges prescribed.
