Myanmar Special Economic Zone Law, 2014(2014, The Pyidaungsu Hluttaw Law No. 1/2014)
8th Waning of Pyatho 1375 ME(2014, January 23)
The Pyidaungsu Hluttaw hereby enacts this Law.
Chapter I
Title, Relevance and Definition
1. This Law shall be called the Myanmar Special Economic Zone
Law, 2014.
2. This Law is relevant to all the Special Economic Zones.
3. The following expressions contained in this Law shall have themeanings prescribed hereunder:(a) Union means the Republic of the Union of Myanmar;(b) Union Government means the Union Government of the
Republic of the Union of Myanmar;(c) Special Economic Zone means the zone notified and establishedby the Central Body as the Special Economic Zone bydemarcating the boundary and issuing the notification under thisLaw;(d) Infrastructures

mean physical fundamental requirements

connected with Special Economic Zone such as electric power
supply, water supply, sewage treatment, transportation, road,
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railway, port, airport and communication network and fundamental
requirements that are not physical such as computer programmes
management programmes which can carry out tasks in easy andeffective ways;(e) Developer means company, person or organization, as the casemay be, which is permitted by the Management Committee to
implement care by case in the development works, constructionof infrastructure, operations or maintenance works of the Special
Economic Zone in accordance with the provisions of this Law
andrules,

regulations,notifications,orders,directives,

procedures issued under to this Law;(f) Investor means citizen and foreigner who establish the joint
venture business or citizen or foreigner who implements theinvestment business permitted by the relevant Management
Committee case by case in the Special Economic Zone;(g) Citizen includes the associate citizen and naturalized citizen. In
this expression the economic organization formed by the citizens
shall also be included by this Law;(h) Foreigner means a person who is not the citizen. In thisexpression the economic organization formed by foreigners shallalso be included by this Law;(i) Free Zone means the area which is deemed to be situated outside
the country which is stipulated by the relevant Management
Committee and the Customs Department to be entitled to theD:¥MSEZ Law¥MSEZ Law Eng reply AG 22-4-2014¥1.Myanmar Special Economic Zone Law 2014.doc

2exemption of the customs duty and other taxes relating to thegoods in the Special Economic Zone and the goods imported into
this zone. In this expression also includes the Free Zone business
manufacturing area, transportation area and international wholesale
area;(j) Promotion Zone means the internal taxation area situated within
the Special Economic Zone and other activities which are not theactivities of Free Zone;(k) Free Zone Activity means activities situated within the Special
Economic Zone and export-oriented activity which has the samerights as the factory activities in the Free Zone which are notseparately prescribed as the Free Zone or the Promotion Zone;.
(l) Other Activity

means activity which has the same rights asfactory activity in the Promotion Zone

situated within theSpecial Economic Zone which are not separately prescribed as
the Free Zone or the Promotion Zone and the activities in the
Promotion Zone;(m) Other Zone means the zones stipulated by the Union
Government from time to time except high-technology industrial
zone, information and technology zone, export products
manufacturing zone, port area zone, providing and transportation
zone, science and technology research development zone,
services zone, subsidiary trade zone;(n) Central Body means the Central Body relating to the Myanmar
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3Special Economic Zone formed by the Union Government under
this Law;(o) Central Working Body means the Central Working Body
relating to the Myanmar Special Economic Zone formed by theCentral Body under this Law;(p) Management Committee means the Special Economic Zone
Management Committee formed under this Law to carry out the
management, administration and supervision works in therelevant Special Economic Zone;(q) Focal Ministry means the Union Ministry prescribed andassigned by the Union Government to take responsibility inimplementing the necessary functions and duties under this Law;(r) Asset means land, building, vehicle and capital assets of thebusiness, the shares, promisory deed and other similar deeds ofagreement;(s) Profit from the asset means the profit received from selling,
mortgaging, exchanging and leasing of the asset.
Chapter II
Objectives
4. The objectives of this Law are as follows:(a) to support the main objectives of the national economic
development plan;

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4(b) to affect employment for the people, to promote their living
standards, to promote the export of goods with the improvementof production and to increase foreign exchange earnings;(c) to encourage, promote and attract being for the balanced
development of the industrial, economic and social sectors in theState;(d) to promote cooperation in industrial, economic and commercial
activities, services and financial transactions between the Stateand other countries, and to provide the opportunities forvocational training to the citizens;(e) to encourage and attract domestic and foreign investments bybuilding good foundations for the Developers and the Investors;(f) to promote the flow of domestic and foreign investments in theSpecial Economic Zone and to establish linkages in continuity
among the industries in and the Special Economic Zone with thecreation of new jobs.
Chapter III
Formation of the Central Body and its Functions and Duties
5. The Union Government:(a) shall form the Central Body relating to the Myanmar Special
Economic Zone, comprising a suitable person as the chairman andfrom the relevant Union Ministers, governmental as departments
and governmental organizations as members, for enabling toD:¥MSEZ Law¥MSEZ Law Eng reply AG 22-4-2014¥1.Myanmar Special Economic Zone Law 2014.doc

5carry out the functions and duties contained in this Law inrespect of establishing and operating the Special Economic Zone;(b) may reform the Central Body formed by subsection (a) as
necessary;(c) shall determine the functions and duties of the Central Body.
6. The functions and duties of the Central Body are as follows:(a) stipulating the policies for the successful implementation of theSpecial Economic Zones in accordance with the provisions under
this Law and giving instructions as necessary;(b) transforming areas in the country which have been selected anddesignated into the business centres of special advanced industry
economy and commerce, service, tourism, agro-based industry
investment, finance and export-oriented industry business center;(c) scrutinizing and obtaining the opinion of the relevant governmental
departments and governmental organizations in relation to the
proposal, the appropriate place, the required land area, the extent andboundary for the establishment of the Special Economic Zone, andsubmitting for the approval of the Union Government;(d) Forming the Central Working Bodies and Management
Committees with the approval of the Union Government, anddetermining their functions and duties;(e) laying down the projects and programmes for the development
and management of the Special Economic Zone, and determining
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6the work programmes

and policy frameworks for the

implementation and supervision;(f) scrutinizing and approving the development plan of Special
Economic Zone submitted by the Management Committee;(g) having right to determine the amount of investment andcategories of business in the Special Economic Zone;(h) supervising the functions of the Management Committees,
carrying out inspections from time to time, and coordinating withtherelevant

governmental

departments

andgovernmentalorganizations;(i) determining the taxes and revenues, rental fees and land use
premiums to be levied under this Law with the approval of theUnion Government and giving exemptions and reliefs thereof;(j) giving extension to the period of the tax exemptions and reliefs
provided under this Law with the approval of the Union
Government in order to develop the whole country;(k) supervising and guiding in order to carry out the office works
speedily at one stop service within the Special Economic Zone;(l) forming organizations with the person from the relevant
governmental departments and governmental organizations tocarry out the matters relating to the administration, security,
management and municipality, and determining the functions andduties of the organizations;D:¥MSEZ Law¥MSEZ Law Eng reply AG 22-4-2014¥1.Myanmar Special Economic Zone Law 2014.doc

7(m) assigning duties to the Management Committee to directlysupervise the organizations formed under Subsection (l);(n) submitting reports on the situation of the implementation of theSpecial Economic Zone to the Union Government from time totime;(o) establishing new Special Economic Zones for the interests of theState and the Citizens, or upgrading the existing suitableindustrial zones into a Special Economic Zone

if it is inconformity with the stipulated prerequisites of the Special
Economic Zone and approval by the Pyidaungsu Hluttaw after
submitting with the agreement of the Union Government;(p) carrying out other functions and duties assigned by the Union
Government in relation to the Special Economic Zone.
Chapter IV
Formation of the Central Working Body and its Functions andDuties
7. The Central Body with the approval of the Union Government:(a) shall form the Central Working Body relating to the Myanmar
Special Economic Zone with persons from the stipulated
governmental departments and governmental organizations toprovide assistance in the implementation of the activities of theSpecial Economic Zone;(b) shall determine and assign duties of the Chairman, Vice
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Chairman, Secretary and Joint Secretary when forming undersub-section (a);(c) may reform the Central Working Body formed by sub-section (a)as necessary.

8. The functions and duties of the Central Working Body are as follows:(a) submitting the suggestion to the Central Body after scrutinizing
the proposals for the construction of Special Economic Zone andinvestment business which are submitted by the Management
Committee, the developer or the investor;(b) scrutinizing the development project of Special Economic Zone
submitted by the Management Committee for the implementationof Special Economic Zone and submitting the suggestion to theCentral Body;(c) submitting the suggestion to the Central Body after scrutinizing
the types of the zone, priorities activities, the types of business to
be carried out in each zone of the Special Economic Zone;(d) submitting its advice to the Central Body, after observing on thematters relating to international special economic zone, in otherspecial economic zones and sites which should be carried out in
Myanmar;(e) coordinating with the relevant organizations in order to undertakethe investment businesses which will be done in the respective
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Special Economic Zone with the approval of the Central Body inaccordance with the stipulations;(f) submitting the suggestion to the Central Body after scrutinizing
the administrative, managerial, legal and other matters relating to
the investment business in the Special Economic Zone;(g) having right to assign the duties after forming other appropriate
working bodies under the Central Working Body if necessary.
Chapter V
Formation of the Management Committee and its Functions
9. The Central Body:(a) shall form each Management Committee for the respective
Special Economic Zone with the persons from the relevant
governmental departments and governmental organizations, theexternal persons and persons from external organizations to
implement the functions and duties under this Law;(b) shall include a representative from relevant region or state
government as a member in the respective Management
Committee;(c) shall determine the Chairman, Vice Chairman, Secretary and
Joint Secretary in forming under Subsection (a);(d) may reform the Management Committee formed under
Subsection (a) as necessary.

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10.

The Chairman of the Management Committee shall be

responsible to the President through the Central Body.
11.

The functions and duties of the Management Committee are as

follows:(a) obtaining the approval after submitting the development project
for the implementation of the Special Economic Zone to theCentral Body through the Central Working Body;(b) making arrangement to enable the investment business inaccordance with the stipulations;(c) issuing the permit of allowing investment business within 30
days from the application date if the application of the intending
investor under section 30 is completed with the requirements;(d) supervising and carrying out inspection on the development
matters of the Special Economic Zone such as implementation of
the investment and development projects, land use, environmental
conservation, education, health, finance, taxation, municipality,transportation, communication, security, electricity, energy andwater supply, and coordinating with the relevant governmental
departments and governmental organization;(e) coordinating with the relevant governmental departments andgovernmental organizations as may be necessary to protect theproperties, profits and other rights of the investors in conformity
with the existing laws;

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(f) stipulating the matters which are to be abided by the investors by
issuing notifications, orders, directives and procedures;(g) coordinating with the relevant governmental departments andgovernmental organizations, as may be necessary, for enabling toobtain the entry visa and residency for foreign investors and theiremployees, technicians, staff and family members if they areforeigners working in the Special Economic Zone;(h) coordinating as may be necessary to facilitate implementation offinancial management by the Central Bank in the Special
Economic Zone, and exchanging of foreign currency for theinvestors, supervising the financial matters and communicating
and operating with the banks which are authorized to carry out
foreign banking businesses in Myanmar;(i) giving permission in accordance with the stipulations in theSpecial Economic Zone to the developers, investors and thecompanies, and supervising their activities;(j) supplementing, amending and repealing, from time to time, thestipulations relating to the registered investment business in theSpecial Economic Zone without affecting the registeredinvestment business;(k) determining the contagious zones and areas in the Special
Economic Zone;(l) establishing one-stop services centre the approval for investment,
company registration, issue of the entry visa relating to theD:¥MSEZ Law¥MSEZ Law Eng reply AG 22-4-2014¥1.Myanmar Special Economic Zone Law 2014.doc

12business, issue of the certificate of origin, collection of taxation,
approval of employment permit and permission, giving
permission for factory construction and other investment andeconomic business licenses and permits can be provided;(m) managing the departments formed by sub-section (l) directly andunder its purview;(n) determining to ensure that the construction work and designs of
the Special Economic Zone are in conformity with the main
project or not;(o) determining the types of businesses, the minimum investment
amount which must be invested for each type of investment, theminimum number of citizen employees to be employed,
standardization of advanced technology and matters which haveto be abided by in the Free Zone and the Promotion Zone;(p) supervising and ensuring compliance with the existing laws
relating to theconservation

andprotection of naturalenvironment, scrutinizing the industrial waste disposal systemfrom the factory, ensuring in conformity with the stipulations to
the developer or investor in the Special Economic Zone;(q) forming a supporting body if necessary with the representatives
from the relevant governmental departments and governmentalorganizations, the representatives of the developer and investor
and other suitable persons and persons from organizations;(r) directing to improve the investment business and changing
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13management pattern based on the advice of the supporting bodyrelating to the construction, operation, repair and maintenance of
the investment projects in the Special Economic Zone;(s) issuing rules and regulations to carry out the business operationand management in the respective Special Economic Zones inaccordance with the stipulations;(t) allowing the exemptions and reliefs to the investor or developerin accordance with Myanmar Special Economic Zone Law;(u) carrying out the functions and duties specifically assigned by theUnion Government and the Central Body.
Chapter VI
The establishment of Special Economic Zone
12.

The Central Body may establish the Special Economic Zone by

the approval of Pyidaungsu Hluttaw with the agreement of the Union
Government in the suitable place or area for the development of Stateeconomy based on the following criteria:(a) having international gateways such as port, airport, or cantransport easily to international border or domestic markets;(b) being the area designated for regional development by the Union
Government;(c) having the infrastructural pre-requisites or having the prospect
for the implementation;

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(d) availability of the water resource and electric power;(e) having sufficient land area to establish the industries and theinvestment business;(f) availability of the skilled workers, semi-skilled workers andtrainable workers;(g) able to arrange the training courses for the recruitment of
required skilled workers;(h) being the strategic area or land in the condition of transportation
or linkage to the market in the country.
13.

Notwithstanding the non-conformity of any of the criteria in

section 12 , the Central Body may establish the Special Economic
Zone by the approval of the Pyidaungsu Hluttaw with the agreementof the Union Government, if it considers that the establishment of theSpecial Economic Zone would be beneficial for the State and its
people.
14.

The Central Body may:(a) select the developer by calling tender according to the international
procedures;(b) select the developer, as another way of selection, by giving
priority to those who have managerial experience in the Special
Economic Zone, considering on the benefits for the State and thecitizens, favourable conditions for speedy implementation of the
project, participation of the people and transparency.
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15.

Foreigner may carry out any other business approved by therelevant Management Committee, either as one hundred per centforeign investment or a joint venture with the citizen.
Chapter VII
Stipulations of Free Zone and Promotion Zone
16.

The relevant Management Committee in a Special Economic

Zone:(a) may stipulate any specifie demarcation as Free Zone or
Promotion Zone as may be necessary;(b) may stipulate other zones according to the market demand in
addition to the Free Zone and Promotion Zone;(c) may stipulate any export oriented activities as Free Zone
Business on each activity if there is no specifie stipulations as
Free Zone or Promotion Zone.
17.

The Free Zone business stipulated by Section 16 Subsection (c)may obtain the privileges of the businesses located in the Free Zone,
and other activities which are not stipulated as the Free Zone
businesses in the Special Economic Zone may obtain the privilegesof the businesses located in the Promotion Zone.
18.

The Customs Department:(a) shall protect the imported goods from overseas and the
manufactured products of the Free Zone so as not to enter thedomestic market or into the Promotion Zone without respective
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clearance of customs duties;(b) shall specify the entries and exits of the Free Zone and the ways
to be applied in order to secure for the safety of the Free Zone
boundary;(c) shall carry out the matters of customs duty clearance in theSpecial Economic Zone in accordance with international norms
which is clear and comprehensible customs duty procedures. If it
is necessary, the Custom Department may carry out the actual
inspection at the place where the investor’s business is situated;(d) may take action according to the relevant customs duty procedures in
examining under sub-section (c), if it finds any non-conformity withthe stipulations.
19.

The Customs Department and the relevant department shallstipulate the procedures relating to customs duty clearance for thetransportation of manufactured products of the Free Zone to thedomestic market or to the Promotion Zone.
20.

It shall be deemed that the goods transported from the Free Zone

to the domestic or to the Promotion Zone as imported goods fromoverseas, and the transportation of raw materials from overseas to theFree Zone which are then manufactured in the Free Zone as finishedor partly finished products and then transported to the domestic or to
the Promotion Zone as importation to the domestic;
21.

If there is no other provisions relating to the goods under section

20, the customs duties and other related taxation shall be paid
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according to the existing laws.
22.

The goods transported from the domestic region or the Promotion

Zone to the Free Zone shall be deemed as the export products of theState.
23.

The manufacturing business located in the Free Zone or Free

Zone businesses shall mainly be export oriented manufacturingbusiness. Such supporting business and export oriented business in
the Special Economic Zone where there is no specifie stipulation on
Free Zone and Promotion Zone may be determined as Free Zone
business.
24.

A hundred percent citizen investment or a hundred percent

foreign investment or joint venture between citizen and foreigner canbe carried out in the Free Zone.
25.

The maximum percentage of the amount of goods manufactured

in the Free Zone which may be delivered and sold to the domestic
market or to the Promotion Zone may be prescribed by the Rules.
26.

In the transportation of goods from the Special Economic Zone toother country, if passing the outside areas of the Special Economic
Zone, shall be transported by the sealed containers.
27.

A hundred percent citizen investment, or a hundred percent

foreign investment or joint venture between citizen and foreigner canbe carried out in the Promotion Zone.
28. (a) The Promotion Zone is the location of the business which isD:¥MSEZ Law¥MSEZ Law Eng reply AG 22-4-2014¥1.Myanmar Special Economic Zone Law 2014.doc

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based on the domestic market or the market in the Special
Economic Zone and it is also the place where the businesssuch as manufacturing business based on the domestic market,
housing, departmental store, banking business, insurance
business, school, hospital and recreatinal places can be invested.
(b) The manufacturing business in the Promotion Zone are mainly
based on the domestic market , and they can be exported directlyfrom such business and delivered to the Free Zone businesses.
(c) Other businesses

situated in Special Economic Zone where

there is no specific stipulation of Free Zone or Promotion Zone
which are not the Free Zone business shall be specified as thebusiness invested in the Promotion Zone.
Chapter VIII
Types of Investment Business, the Duties and the Exemptions of theInvestor
29.

The investor is entitled to carry out the following investment

business in the Special Economic Zones in accordance with thestipulations:(a) manufacturing finished products from raw materials, processing
goods warehousing, transportation and providing services;(b) transporting and importing raw materials, packaging materials,
machinery instruments and equipment, and fuel oils to be used in
the investment business from the domestic or overseas to theSpecial Economic Zone;
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(c) trading the manufactured products from the investment businessto the domestic and overseas in accordance with the stipulations;(d) establishing and operating the offices for investment businessand overseas service works at the stipulated place in the Special
Economic Zone with the permission of the Management
Committee;(e) carrying out other economic business which are not prohibited by
the State, with the permission of the Management Committee.
30.

The person intending to invest in the Special Economic Zone

shall apply to the Management Committee to obtain the investment
permission in accordance with the rules and regulations stipulated
under this Law
31.

The investor shall complete the investment construction in the

stipulated period and operate profitably the investment business. If
the investment business is unable to be completed during the
stipulated period, the investor shall submit the justification reason to
the Management Committee in advance. If delay is found without
any justification reason, the Management Committee may revoke theinvestment permission in accordance with the rules and regulations.
32.

The investor is entitled to the following income tax exemption

and reliefs:(a) for investment business in the Free Zone or the Free Zone
business, there shall be income tax exemption for the first sevenyears from the commencement of the commercial operation;
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(b) for investment business in the Promotion Zone or other business inthe boundary of the Special Economic Zone, there shall be income
tax exemption for the first five years from the commencement of thecommercial operation;(c) for the investment business within the Free Zone and thePromotion Zone, there shall be fifty percent relief on the income
tax rate stipulated under the existing law for the second five
years;(d) for the investment business within the Free Zone and thePromotion Zone there shall be fifty percent relief of the income
tax rate stipulated by the existing law for the third five years on
the profit which is obtained from the business if it is reinvested
within one year in the business as a reserve fund.
33.

After the expiry of the tax exemption and relief period under

Section 32, if the tax exemption and relief under this Law are notpermitted again, the investor shall pay the income tax at the rate
stipulated by the existing law.
34.

The investor shall:(a) register the business, company, organizations to be operated in
the Special Economic Zone in accordance with the stipulations at
the Branch Office of Directorate of Investment and Companies
Administration which is opened jointly with the Office ofManagement Committee within the Special Economic Zone;(b) report the situation of the implementation on the investment
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business to the Management Committee in accordance with thestipulations;(c) compile and keep the business statistics, accounts and records
accurately in accordance with the international standards;(d) destroy the perished, unusable or sub-standard medicines and food
stuffs of the investment business in accordance with thestipulations of the Management Committee at the stipulated place.
35.

The investor shall not only abide by the environmental standards

described in the Myanmar Environmental Conservation Law andinternational standards, but also carry out them in accordance withthe existing laws in order not to have undesirable health and social
impact.
36.

The investor who has intention of terminating or liquidating thebusiness or company or organization shall carry out in accordancewith the stipulations after giving prior notice to the Management
Committee.
37.

The investor may re-register the transfer of part or whole of theshares of the business or company or organization after giving priornotice to the Management Committee.
Chapter IX
Development Business, Duties and Exemptions of Developer
38.

Development business may be carried out as follows:(a) it may be carried out as a developer by the private, or by theD:¥MSEZ Law¥MSEZ Law Eng reply AG 22-4-2014¥1.Myanmar Special Economic Zone Law 2014.doc

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government, or by incorporation of private and the government;(b) Establishment of the Special Economic Zone may be carried out
as a developer by a one hundred per cent citizen investment, or a
one hundred per cent foreigner investment, or a joint venture
investment of the citizen and the foreigner or intergovernmental
investment.
39.

The developer:(a) may, after entering into a leasing contract with the relevantManagement Committee, carry out the implementation ofbusiness in the Special Economic Zone, sub-leasing the land to
the investors and making maintenance in the Special Economic
Zone under the supervision of the Management Committee;(b) may, if it is the Union Government, or Divisional or State
Government, carry out the activities such as construction,
management and maintenance in the Special Economic Zone,
whether directly or by contracting out the work to otherorganizations in transparency;(c) shall complete each of development in project the stipulated
period. If it cannot be completed in the stipulated period, he shallsubmit sufficient justification in advance to the Management
Committee. If finding of being delayed without sufficientjustifications, the contract of land lease between the Management
Committee and the developer shall be null and void;(d) may carry out the infrastructures in the Special Economic Zone
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by him self or by contracting out to other organizations;(e) may develop by forming specifie organizations to construct anyof the infrastructures with the agreement of the Central Body , indeveloping infrastructures related to the Special Economic Zone
which are located outside the Special Economic Zone. These
organizations shall have separate accounts. The developer of therelated infrastructure may be entitled to the privileges of thedeveloper of the Special Economic Zone. The development ofrelated infrastructures such as road, railway, bridge and water supply
which will take longer time to recoup the costs of investment may
be granted more privileges with the agreement of the Central Body.
(f) shall, if a related infrastructure renders its services not only
within the Special Economic Zone but also outside the Special
Economic Zone, enter into contracts in respect of each sector
with the relevant governmental organizations in relation to its
services to outside the Special Economic Zone.
40. The developer is entitled the following income tax exemptions andreliefs:(a) income tax exemption for the first eight years from thecommencement of business operation;(b) fifty per cent relief of the income tax rate stipulated by theexisting law for the second five years; and(c) fifty per cent relief of the income tax rate stipulated by theexisting law for the third five years on the profit which isD:¥MSEZ Law¥MSEZ Law Eng reply AG 22-4-2014¥1.Myanmar Special Economic Zone Law 2014.doc

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obtained from the business if it is reinvested within one year in
the business as a reserve fund.
41.

The developer shall, after the expiry of the tax exemption andrelief period under Section 40, if the tax exemption and relief under
this Law are not permitted again, pay the income tax rate stipulatedby the existing law.
42.

If the developer who carries out the business operation by himself

in the Special Economic Zone, he may sublease the land andbuildings in the Special Economic Zone to the investors during thepermitted period or during the period of land lease to operate thebusiness by the Management Committee.
43.

The developer shall pay the payable fees for the right to use landor the right to operate business activities either in one lump sum or
regular instalment to the relevant department in accordance with theland agreement with the relevant Management Committee.
Chapter X
The Exemptions and Reliefs on the Import Revenue of theDeveloper and the Investor
44. The entitlement to the exemptions and reliefs on the importtaxation shall be as follows:(a) for the developer, the exemptions of customs duties and otherrelevant taxation on the import of the construction materials forthe infrastructures and own offices; machine instruments;
machinery; motor vehicles for work and work materials;
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(b) for the investor of the Free Zone, the exemptions of customs
duties and other relevant taxation for the import of raw materials
for production, machinery instrument and necessary spare partsfor production; construction materials and motor vehicles forbuilding factory, warehouse and own office;(c) for the investor of the Free Zone, the exemptions of customs
duties and other relevant taxation on the import of trading goods,
consignment goods, motor vehicles and other materials which areessential for the business for free-tax wholesale trading, export
trading and services of provision and transportation;(d) for the investor of the Promotion Zone, the exemptions ofcustoms duties and other relevant taxation for five years from thebusiness commencement on the import of equipment andinstrument not for sales and their required spare parts, theconstruction materials for factory, warehouse and own office, themotor vehicles and other materials which are essential for thebusiness, and fifty percent relief of the custom duties and othertaxation for the consecutive five years.
45.

The investor of the Promotion Zone:(a) shall regularly pay the customs and other taxation upon theimportation of raw materials and other goods for production;(b) may apply to refund of the customs duties and other taxation paid
at the time of importing those materials for the finished orsemi-finished goods produced by the materials imported under
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sub-section (a) are exported abroad or into the Free Zone.
46.

The developer and investor:(a) shall not sell and transfer the imported machinery, equipment,
instruments and motor vehicles to the outside of the Special
Economic Zone;(b) shall repay the exemptions or relief which were enjoyed at thetime of import if the materials were sold and transferred undersub-section (a) as a special case.
47.

The developer and investor shall take the decision of the relevantManagement Committee regarding the provisional period of importpermission in relation to the import of large machinery andequipment in the short period for use in the initial of construction
work.
48.

The developer and the investor of the Special Economic Zone

shall be permitted to manage to retrieve the losses for five years after
the year of losses incurred.
49.

In relating to commercial tax or value-added tax:(a) The investor of the Free Zones may be given exemption of thecommercial tax or valued-added tax;(b) The investor of the Promotion Zone may be given exemption andrelief of the commercial tax and value-added tax during theperiod of relief provided in this Law. After the end of the periodof relief, the commercial tax and value-added tax shall be paid in
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accordance with the relevant law.
(c) The investor may apply for the exemption of commercial tax orvalue-added tax for manufactured goods which will be exported.
(d) The investor of the Free Zone may apply the exemption forimport tax or value-added tax for the goods imported from thelocal or Promotion Zone to the Free Zone.
50.

Except for goods which are prohibited and restricted by theUnion Government, the goods exported directly or indirectly or
re-exported from the Special Economic Zone are entitled toexemption of taxes and other assessments.
51.

The developers and investors may apply the exemption of income

tax for the dividends distributed to each shareholders based on the
profits accrued locally for which tax has been paid.
52.

The actual expenses of conduating local training by the investorof the Free Zone to the skilled worker or semi-skilled worker or thestaff of the management sector and providing the business researchand development are deductible from the taxable income.
Chapter XI
The Settlement of Disputes
53.

If any dispute arises in respect of the investment business, it shallbe settled amicably between the disputing parties.
54.

If it cannot be settled under Section 53:

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(a) it shall be dealt with in accordance with the dispute settlement
mechanism if it is stipulated in the relevant agreement;(b) it shall be dealt with in accordance with the existing laws of theUnion if the disputes settlement mechanism is not stipulated in
the relevant agreement.
Chapter XII
Withholding Tax from the Source
55.

If the non-resident foreigner has no business established in

Myanmar but has the right to carry out business related to the Special
Economic Zone under any property and intellectual property right:(a) the payer shall deduct the withholding tax from the source of theroyalty, interest and payments for the business services inaccordance with the income tax rate prescribed under the Income
Tax Law and pay it to the relevant authority;(b) the payer shall deduct the withholding tax from the source ofrental fee and other similar income in accordance with theincome tax rate prescribed under the Income Tax Law and pay itto the relevant authority.
56.

The respective investor shall collect and pay the income tax of

local and foreign staff and workers employed in the Special
Economic Zone from their salaries and incomes in accordance with
the income tax rate prescribed under the existing law in the currency
determined by the Central Body.

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Chapter XIIIBank and Finance Management and Insurance Business
57.

The business which is operated in foreign currency in the Special

Economic Zone shall have the right to open foreign currency accountwith any bank of foreign banking in Myanmar and carry out thematters of receipt and payment with the foreign currency inaccordance with the stipulations.
58.

The developer and the investor are entitled to exchange and remit

their own foreign currency within the Special Economic Zone orabroad in accordance with the stipulations.
59.

Insurance companies owned by the citizen, the foreigner, or

jointly owned by the citizen and the foreigner are entitled to operate
their agency offices and insurance business within the Special
Economic Zone.
Chapter XIV
Management and Inspection of Goods by the Customs Department
60.

The investor in the Free Zone or the Free Zone Business shallabide by this Law and rules, bye-laws, regulations, notifications,orders and directives issued by this Law, and the investors in the
Promotion Zone or other business shall abide by the provisions of theexisting customs duty law and related rules and regulations.
61.

The Customs Department, in reducing the procedures and controlof customs duty in the Free Zone, shall ensure the realization of
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observance of international conventions, but shall not exercise
excessive control.
62.

The Customs Department shall make customs declaration,

scrutinizing the documents and if necessary, examining the goods
only once in accordance with international norm when raw material
and machinery which are transported for manufacturing export
products into the Free Zone or when export products are sent
overseas.
63.

The Customs Department shall, when inspecting the goods

having risk imported into the Free Zone by using the way of customs
inspection in accordance with customs procedures, inspect those
goods not more than necessary measure.
64.

If it is necessary for the Customs Department to conduct field

inspection on the goods, although it has to inspect at the Investor’ssite, it shall reduce the customs procedures in order to expedite theinspection on goods. The customs officer, if necessary, may seal to
avoid losses when transporting the inspected goods.
65.

The Customs Department shall, after taking the goods causing thecustoms clearance work smoothly and quickly, have the right to use
Post Clearance Audit system which allow inspection for book keeping,records, business system and commercial information maintained bypersons who import or export and companies involved directly or
indirectly at international trading until the satisfaction of Customs
Department.
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66.

The matters regarding trading goods of designated trading area in

the Free Zone or goods displayed at exhibition which showedmanufactured products shall be carried out under the procedures of
the Customs Department.
67.

The Customs Department may monitor and inspect the mattersregarding the transportation of goods used in the process of the
manufacturing in the Free Zone according to the procedures.
68.

The investors of the Free Zone may directly purchase raw

materials, accessories, parts, equipment, packaging materials andsemi-finished goods which need to produce export products orneeded to use for export business from the local or the Promotion
Zone. When such goods are transported to the Free Zone, the customs
clearance procedures shall be abided by.

Chapter XVQuarantine Inspection and Confinement so as not to spread
Contagious Disease69.

The responsible person from the Quarantine Prevention

Department of the Department of Health:(a) shall carry out quarantine inspection and confinement as
necessary not to spread contagious disease in transporting goods,
vehicles, containers, animals and plants which are to be directly
imported to the Special Economic Zone or directly transported
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ports, airports, railway stations and the Special Economic Zone;(b) shall, carry out quarantine inspection and confinement so as not
to spread contagious disease, as may be necessary, relating to
the export, import items or investment business within theSpecific Economic Zone.
Chapter XVI
Matters relating to Labour
70.

The Management Committee for the matters relating to labour in

the Special Economic Zone:(a) shall supervise to ensure that the employment agreement is madein accordance with the stipulations;(b) shall coordinate in determining the rights and duties of theemployer and employee or terms and conditions relating toemployment contained in the employment agreements forenjoying the rights in accordance with the existing labour laws
including minimum wages, salary, leave, holiday, overtime
charges, compensation for dismissal from work and workmen’scompensation;(c) shall inspect and supervise so as not to diminish or lose the rights
and entitlements of the employees, technicians and staffs;(d) may determine the minimum wages of employee and staff.
71.

The investor may recruit freely from the Work and Labour

Recruitment Office in the Special Economic Zone, or from local
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labour recruitment.
72.

In employing citizens skilled workers, technicians and staff inrelation to the employment, the employment agreement shall besigned by the employer and employee and shall be employed inaccordance with the existing Labour Laws and Rules.
73.

The investor shall arrange the training and course relating to therelevant subjects by the type of business for the improvement of theskill of the citizen staff.
74.

The investor shall employ only the citizens in the work wherehigh technology and skill are not required.
75.

The investor shall, in employing citizen skilled workers,

technicians and staff who are required of high technology and skills,
have appointed the citizens at least 25 percent the first two years fromthe commencing year of operation, at least 50 percent in the second
two years, at least 75 percent in the third two years.
76.

(a)

The relevant Management Committee shall negotiate andmediate the disputes arising between the employer and theemployee, the technician or the staff in the Special Economic
Zone.
(b) If no settlement has been reached although negotiation andmediation were made by the relevant Management Committee
under sub-section (a), such disputes shall be dealt with pursuant
to the Trade Dispute Act.

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77.

The work permit for foreign employees working in the Special

Economic Zone shall be issued by the representative office of labour
department opened in operating as one stop services department in
the Special Economic Zone.
78.

The investor, if it is required to appoint more foreign employees

than stipulated numbers based on the condition of his investment
business, may appoint by the permission of the relevant Management
Committee.
Chapter XVIILand Use
79.

The Management Committee may, after causing payment of feesto be made by the developer or the investor for the right to land leaseor land use, permit for 50 years. If the investor is desirous ofcontinuing to operate after the expiry of the permitted term, it may
renew for 25 years.
80.

The developer or the investors:(a) shall bear the expenses of relocating and paying compensation inaccordance with the agreements if houses, buildings, farms andgardens, orchards and fields, plantation on land permitted forland lease or land use are required to be relocated;(b) shall, to relocate the persons so as not to lower their original
standard of living, to fulfill the fundamental needs and forfacilitating such works, coordinate and carry out with the relevantManagement Committee as may be necessary;
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(c) shall use the land which is entitled to lease or use in accordancewith the prescribed terms and conditions;(d) shall not modify or alter significantly, without permission of therelevant Management Committee, the topography or the contourof the land for which he obtained land lease or land use;(e) shall report immediately to the Management Committee if
natural mineral resources or antiques or treasure or mine notrelating to the permitted enterprise which are not included in theoriginal agreement are found above or under the land which he isentitled to lease or use. If the Management Committee permits,
he may continue to operate on such land. If not, he shall move tothe substituted arranged area;(f) may sell, mortgage, lease, exchange or gift land lease, land use
and buildings to a third party or other organizations enabling tooperate the work within the approved term in accordance withthe rules and regulations and with the agreement of the relevantManagement Committee.
81.

If the developer or the investor dissolves or winds up his

investment, the permission to land lease or land use shall be revoked
and the land must be returned back; if necessary, the developer or theinvestor shall remove the buildings on the land.
82.

The Ministry of Home Affairs, shall carry out the take over ortransfer of the lands in the region intended as Special Economic Zone
by the Central Body in accordance with the existing laws.
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Chapter XVIII
Miscellaneous
83.

The assets, profits and other rights owned by the developer orinvestor shall be recognized and protected in accordance with theexisting laws.
84.

The prices of products, services or exported products manufactured

from the Free Zone or the Promotion Zone shall not be restricted andcontrolled.
85.

The developer or the investor and their workers, technicians,

employees and family members who reside in the Special Economic
Zone shall abide by other existing laws of the Republic of the Unionof Myanmar in addition to the provisions of this Law.
86.

It is guaranteed that the investment business in the Special

Economic Zone shall not be nationalized during the permitted period.
87.

The relevant Union Ministries and the Region or State Ministries

shall implement the works relating to them contained in this Law.
88.

The person who is assigned duty by the relevant Union Ministry

and the Region or State government shall levy in accordance with theexisting tax and revenue laws from the defaulter who was failed to
pay taxes and fines recoverable under this Law.
89.

Notwithstanding anything contained in any existing law, thematters relating to any provision of this Law shall be carried out inaccordance with this Law.
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90.

The focal Ministry shall undertake to carry out the office worksof the Central Body and bear the expenses.
91.

The Union Government:(a) may assign the duty to the focal Ministry or any other Union
Ministry to carry out the office works of the Management
Committee and to bear the expenses;(b) may, by notification, if it is necessary to carry out the functions
and duties of the Central Body for the Special Economic Zone,
form any special committee with the suitable persons;(c) may, by notification, form any management committee with thesuitable persons to carry out the works of management andsupervision;(d) may stipulate the functions and duties of the committees
contained in subsection (b) and (c).
92.

The Central Body, the Central Working Body and the Management

Committee relating to the Myanmar Special Economic Zone formed by
the Myanmar Special Economic Zone Law (The State Peace andDevelopment Council Law No. 8/2011) repealed by this Law shall be
accepted as formed by this Law until the formation of the Central
Body, the Central Working Body and the Management Committee
under this Law.
93.

The notifications, orders, directives and procedures issued by the

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Development Council Law No. 8/2011) repealed by this Law shall havethe right to exercise in so far as they are not contrary to this Law.
94.

The notifications, orders, directives and procedures issued by theCentral Body, the Central Working Body and the relevant Special
Economic Zone Management Committee shall not affect the businessregistered to invest in the Special Economic Zone before issuing them.
95.

In implementing the provisions of this Law:(a) the responsible Union Ministry may issue rules, regulations andby-laws with the approval of the Union Government if necessary;(b) the Central Body, the Central Working Body and the Management
Committee may issue notifications, orders, directives andprocedures as may be necessary.
96.

The Myanmar Special Economic Zone Law (The State Peace andDevelopment Council Law No. 8/2011) and The Dawei Special
Economic Zone Law (The State Peace and Development Council
Law No. 17/2011) are hereby repealed by this Law.

I hereby sign under the Constitution of the Republic of the Union of
Myanmar.
sd/ Thein Sein
President
Republic of the Union of Myanmar

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