Myanmar’s economy and businesses, like many around the world have been impacted by the COVID-19 pandemic. In view of the impacts, the Myanmar government has introduced various measures intended to provide relief to the affected businesses. Businesses in Myanmar should consider the various financing options and tax reliefs that may be applicable to them, while at the same time to consider the accompanying conditions attached to these respective measures.
This blog post will highlight the measures introduced by the Myanmar government. This information is accurate as of 16 Jun 2020. However, because of the evolving pandemic situation, this information may not reflect the most updated developments. We encourage you to contact the relevant authorities from time to time for the latest updates.
This blog post will highlight the measures introduced by the Myanmar government. This information is accurate as of 16 Jun 2020. However, because of the evolving pandemic situation, this information may not reflect the most updated developments. We encourage you to contact the relevant authorities from time to time for the latest updates.
Tax Related Measures
Employment and Manpower Related Measures
Economy Related Measures
The Myanmar government had already launched the COVID-19 Economic Relief Plan (CERP) to cushion the impact of the pandemic on its economy and businesses. Several measures under the CERP have already been implemented and have benefited many individuals and businesses. While the CERP is comprehensive, we can expect the relevant authorities to issue further directives and guidelines to provide clarity on the various measures announced in the CERP.
We urged businesses to take note of the accompanying conditions set by the various government agencies and assess their eligibility. You may refer to the following sources for more information:
- Payment of income and commercial tax for Q2 payments ending 31 March 2020 and Q3 payments ending 30 June 2020 will be extended to 30 September 2020.
- Payment of commercial tax for the period 31 March to 30 August 2020 deferred to 30 September 2020.
- One-time increase of capital depreciation equivalent to 125% of depreciation rates for the current year.
- A tax deduction of up to 125% of wages paid.
- Waiver of advance income tax of 2% on exports until 30 September 2020.
- Provision of 10% non-refundable tax credits for incremental wage bills.
- Provision of 10% non-refundable tax credits for incremental investments on capital equipment.
- Waiver of Specific Goods Tax for critical medical supplies and products related to the prevention, control and treatment of COVID-19.
- Waiver of Customs Duties on importation of critical medical supplies and products related to the prevention, control and treatment of COVID-19.
Employment and Manpower Related Measures
- Deferment of Social Security Board (SSB) contributions up to 3 months.
- Extension of healthcare benefits for unemployed SSB members from 6 months to 1 year from the date of unemployment.
- The Directorate of Investment and Company Administration (DICA) is facilitating the stay permit and visa extension process to be conducted digitally.
Economy Related Measures
- Lower interest rate of 1.5% by the Central Bank of Myanmar.
- Deposit rates will be subject to minimum 5%, with secured lending rates subjected to a maximum of 10%.
- Unsecured lending rates subjected to maximum of 14.5%.
- Small, medium-sized enterprises (SMEs), hotel & tourism companies and cutting, making, packaging (CMP) companies will be able to apply for working capital loans (disbursed from a relief fund of MMK 100 billion) with 1% interest rate for a period of 1 year.
- Agricultural, rural development and livestock loans offered at reduced rates approximately 1 – 1.5% lower.
- Banks are allowed to restructure and reschedule SMEs loans that regularly pay interest and principal on a timely basis for a longer period (not more than 3 years).
- Establishment of a MMK 100 billion fund designated to commercial banks to promote trade financing of any products.
- Myanmar Investment Commission (MIC) will reduce its service fees by 50% for all application until further notice.
- Large private pipeline investments proposed and committed by reputable international firms will be expedited for approval through fast-track procedures.
- Solicitation of renewable energy projects will be expedited subjected to monitoring of costs developments and assessment of quality of deals available.
The Myanmar government had already launched the COVID-19 Economic Relief Plan (CERP) to cushion the impact of the pandemic on its economy and businesses. Several measures under the CERP have already been implemented and have benefited many individuals and businesses. While the CERP is comprehensive, we can expect the relevant authorities to issue further directives and guidelines to provide clarity on the various measures announced in the CERP.
We urged businesses to take note of the accompanying conditions set by the various government agencies and assess their eligibility. You may refer to the following sources for more information: