Investors in the project are exempt from income taxes on their businesses for their first seven years of operation in the exempted zone, and for their first five years of operation in the promotion zone. In both zones, investors receive 50% relief in their second five years of operation, and 50% relief on all profits in their third year of operation. Developers have all of the same stipulations, except they are exempted from income tax in their first eight years of operation.
Dawei port project have been granted a number of rights by the law which are not common elsewhere in Burma. They are given the right to open foreign bank accounts, and have relaxed currency exchange restrictions. Additionally, foreign companies and investors are allowed to invest in the project, and the government does not regulate product pricing. The law also stipulates that the government will not seize, or nationalize businesses in the zone.
The State Peace and Development Council Law No. 17, was passed on 27 January 2011. The law has a number of notable tax breaks for investors and developers, in order to spur investment in the region. The law stipulates that two zones, the promotion zone and the exempted zone, are to exist within the special economic zone itself. The two zones differ in their tax breaks. Incentives
- A five year tax holiday;
- 50 percent income tax relief on items exported overseas for five years;
- 50 percent income tax relief on reinvested profits from overseas exports for five years;
- A five year exemption on custom duties on approved products; and
- The granting of 30 year land leases.
Developers are exempted from customs duties for construction materials, machinery, equipment, heavy machinery, and vehicles. Investors have the same exemption in the exempted zone, but in the promotion zone pay 50% of normal duties for the first five years of transport into Dawei.