Myanmar : Expansion of Permitted Foreign Currency and Updated Tax Incentive Criteria under MIC Framework
PREAMBLE
On March 16, 2026, Myanmar Investment Commission (MIC) issued Newsletter Bulletin No.1/2026 to announce a significant policy update. According to the bulletin, the MIC now permits the use of Chinses Yuan, in addition to the US Dollar, for foreign capital contributions. This measure is intended to facilitate investment processes particularly in applications for Proposal and Endorsement. Both currencies must be remitted through Authorized Dealer Licensed Banks.
KEY UPDATES
On the same date, the MIC also issued Notification No. 1/2026 exercising its authority under section 100(b) of the Myanmar Investment Law 2016. This notification establishes minimum standards for investors seeking to qualify for tax exemptions or incentives in promoted investment sectors.
- Eligibility Criteria for Tax Benefits
- At least 35% of the total investment amount, as stated in proposal or endorsement application, must be contributed in cash.
- Where the investment involves a foreign loan, the investor must submit:
- A loan approval letter issued by the Central Bank of Myanmar which including the loan repayment schedule; and
- Document from an Authorized Dealer Licensed Bank confirming that both the loan proceeds and foreign capital contributions have been remitted in cash.
While the expanded currency framework offers greater operational convenience, the MIC has simultaneously reinforced compliance thresholds for tax benefits. Investors should proactively review their funding strategies and supporting documentation to avoid delays or disqualification during the approval process.
- Procedure for Importing Capital into Myanmar
If company wishes to import capital into Myanmar, the incorporation process must first be completed and a corporate bank account opened through an authorized dealer banks (AD banks). The shareholder must remit the capital amount into the company’s bank account, and the remittance description should clearly state “Investment Capital”.
Capital importation through offshore loans requires prior approval from the Central Bank of Myanmar. Companies approved by the Myanmar Investment Commission (MIC) may also apply for MIC approval, while non-MIC approved companies must comply with the requirements of the Directorate of Investment and Company Administration (DICA). Once approval is granted, the loan must be remitted into Myanmar through an AD bank.
The company must retain the inward remittance advice as evidence of capital importation. Principal repayment and interest must follow the repayment schedule approved by the Central Bank of Myanmar. A bank statement must be submitted together with the company’s Annual Return within two months after incorporation in MyCo.
CONCLUSIONS
The MIC’s dual measures—expanding permitted foreign currencies and tightening tax incentive criteria—reflect a balanced approach to encouraging foreign investment while safeguarding regulatory compliance. By allowing contributions in Chinese Yuan alongside the U.S. Dollar, Myanmar is opening doors to broader investor participation. At the same time, stricter requirements for tax benefits ensure that only well-prepared and financially sound investors qualify.
OUR CAPABILITIES
ILAW Myanmar is well-positioned to assist investors in navigating these updates. We provide:
- Regulatory Guidance: Advising on compliance with MIC requirements and preparing necessary documentation.
- Strategic Planning: Structuring investment contributions to meet both currency and cash contribution thresholds.
- Cross-Border Expertise: Supporting clients with multi-jurisdictional investments, including coordination with authorized banks and regulatory bodies.
With our experience in cross-border legal frameworks, we ensure that clients can capitalize on new opportunities while mitigating risks under the updated MIC framework.
