The role of the Thilawa SEZ Management Committee is to ensure (a) that favorable, predictable and friendly investment climate is created (b) that investors in the Thilawa SEZ are responsible investors and (c) that the Thilawa SEZ would not pose any environmental threat to the surrounding areas and communities. In order to ensure that the Thilawa SEZ Management Committee effectively plays its role, monitoring mechanism is developed. The investors or locators of the Thilawa SEZ are encouraged to participate in the monitoring mechanism. Hence, the Thilawa SEZ Management Committee plays the multiple roles as a facilitator, a coordinator, a regulator and a monitor. It also cooperates very closely with the Developer, the Myanmar Japan Thilawa Development Co., Ltd. (MJTD). The investors or locators having any kind of difficulty during their business operation are welcome to consult with the Thilawa SEZ Management Committee at the Industrial Park Center in the Thilawa SEZ. The online enquiry system is also available through which any difficulty or complaint can be reported. The One Stop Service Center under the Thilawa SEZ Management Committee is also ready to provide investors or locators with necessary licenses, permits and other services required. The investors or locators requiring any services are welcome to the Front Office of the One Stop Service Center. The online applications are also available for some services so that investors do not even need to come to the One Stop Service Center.
- 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.
There are various tax exemptions available to investors and the developer in the Thilawa SEZ. As laid out in the 2014 Myanmar Special Economic Zone Law, business in both Free Zone and Promotion Zone receive income tax (corporate tax) exemptions for the first 7 or 5 years respectively.
After these periods, the exemption remains at 50 percent for another 5 years. Following this, it is still possible for an extension of the 50 percent tax exemptions. In addition, investors in the Thilawa SEZ are exempted from customs duties and other taxes for the capital goods they import. The Free Zone investors are exempted from customs duties and commercial tax even for the imports of raw materials. These exemptions allow firms to keep both their administrative and construction costs low.
There are various other advantages for investors in Thilawa, including the ability to lease the land for up to 75 years (50 years with option for a 25 year extension), tax deductions for the training of staff or research and development, and exemptions from commercial taxes as well. These are all put in place to make Thilawa a place where investors can do business as easily and profitably as possible.
Further details on these exemptions are available in the 2014 Myanmar Special Economic Zones Law.For investors, what is more important than tax exemptions is to have a favorable investment climate. It is the most attractive incentive for them these days. The Thilawa SEZ Management Committee and its One Stop Service Center are dedicated to ensure that a favorable, predictable and friendly investment climate for investors.
The developer and investors need to register the Master List, Material List and Bill of Materials (BOM) with the Thilawa SEZ Management Committee. These lists can be amended from time to time before the arrival of goods.
The Master List is the list of capital goods such as machinery, equipment, construction materials, etc., that will be imported by the developer or investors. The duties and taxes on the importation of these goods in the Master List are exempted for free zone investors at all time. The duties and taxes on the importation of these goods in the Master List are exempted for non-free zone investors during a period of 5 years from the date of investment approval and are reduced by 50% for the next consecutive 5 years.
For import of used machinery, the Mechanical Performance Certificate issued by a reliable institute is required to be attached at the time of Master List registration with the Thilawa SEZ Management Committee. Such import of used machinery is also subject to the approval of the Thilawa SEZ Management Committee.
The Material List is the list of raw materials, manufacturing inputs or goods for sale that will be imported by the developer or investors, as the case may be. The duties and taxes on the importation of these goods in the Material List are exempted for free zone investors but are not exempted for non- free zone investors.
Bill of Materials (BOM) List is the list of raw materials or manufacturing inputs required for the production of one unit of product. The importation or exportation of products that are already included in the registered Master List or Material List will not require import/export license. The developer or investors need to submit the import or export declaration, as the case may be, to the Customs Section of OSSC at the Thilawa Logistic Center of before importation or exportation.
The procedures for importation and exportation can be downloaded from the following link.
- FORM-CT1-1_Sample of Master List
- FORM-CT1-2_Sample of Material List
- FORM-CT1-3_Sample of Bills of Materials (BOM)
- FORM-CT2_Sample of Import Declaration
- FORM-CT3_Sample of Export Declaration
- FORM-CM1-1_Application Form for Import License
- FORM-CM1-2_Import License
- FORM_CM2-1_Application Form of Exporter Importer Registration
- FORM_CM2-2_Exporter Importer Registration Certificate