Special Economic Zone Trading
Currently, trading is largely off limits to foreign entities. However, on 27 May 2015, the Thilawa Special Economic Zone (“SEZ”) management committee issued instruction 02/2015 to provide some guidance on trading activities that the management committee will now consider.
We are glad to highlight some of the key points which we think will be of interest to potential foreign investors as well as Myanmar businesses.
Free zone businesses will be able to wholesale their products up to 25% of their total sales to the promotion zone businesses or to businesses outside of the SEZ. Unfortunately, free zone businesses will still not be able to partake in retail business.
Promotion zone businesses will be able to import their own products for wholesale and retail of goods within the SEZ with some requirements such as:-
Promotion zone businesses would also be able to undertake the above in relation to other products but in addition to the above requirements, the following would need to be fulfilled:-
In addition, it would seem that wholesale of locally procured products outside of the zone may be allowed whilst retail would only be permitted within the SEZ
However, it is important to note that the above liberalisations would not be applicable to vehicles and any other products restricted in the domestic tariff areas at this stage.
Do reach out to KPMG and we will be happy to provide more details as well as have a discussion on how KPMG can assist. KPMG is experienced in terms of assisting our clients in their applications for investment permits in the SEZ. KPMG in Myanmar will also be able to providing you the necessary advisory and compliance needs to ensure the deployment of your business in Myanmar.
KPMG Tax Alerts highlight the latest tax developments, impending change to law or regulations, current practices and potential problem areas that may impact your company. As certain issues discussed herein are time sensitive, it is advisable to make your plans accordingly.
“Myanmar Tax Alert” is issued exclusively for the information of clients and staff of KPMG Advisory (Myanmar) Ltd and should not be used or relied upon as a substitute for detailed advice on the basis for formulating business decisions.