Under the Special Economic Zone Law, 104 enterprises, including three domestic businesses, invested capital of US$1.59 billion into the Special Economic Zones (SEZs), according to data released by the Directorate of Investment and Company Administration, Myanmar.
Singapore placed the top on the list, with investments of $639 million, accounting for 40 percent of overall investments, followed by Japan with $456 million and Thailand with over $186.49 million. The Republic of Korea, Hong Kong, the UK, the UAE, Malaysia, Austria, China (Taipei), Panama, China, Brunei, Viet Nam, Australia, France, and the Netherlands also invested in the SEZs.
Myanmar is currently putting in place three Special Economic Zones in Thilawa, Kyaukpyu, and Dawei. Out of the three, Thilawa is leading in investments due to its better infrastructure and successful business. Myanmar Thilawa SEZ Holdings Public Limited’s 2017- 2018 annual report stated that 97 percent of Thilawa Zone A and 61 percent of Zone B have already been sold.
Companies in the promotion zone of Thilawa Special Economic Zone (SEZ) accounted for over 75 percent of overall investments. A company exporting at least 75% of the production in value is registered as a Free Zone investor that will be exempted from corporate taxes for 7 years starting from their beginning commercial operations.
The companies, such as logistics that support export-oriented manufacturing, can also be free zone companies. Domestic-oriented manufacturing companies are regarded as promotion zone companies, and they are eligible to enjoy five-year tax holidays for corporate taxes. There are other tax incentives for the free zone and promotion zone investors on the import of capital goods, raw materials and merchandise, and consigned goods and vehicles.
For further tax information, the public can visit http://myanmarthilawa.gov.mm. The manufacturing sector absorbed the largest share of foreign investments. Additionally, investments flowed into trading, service, transportation and logistics, real estate and hotel sectors in recent years.