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October 21, 2018

Promotion zone accounts for over 75 per cent of investments in Thilawa SEZ

Companies in the promotion zone of Thilawa Special Economic Zone (SEZ) brought US$1.13 billion into the zone since 2014-2015 fiscal year, accounting for over 75 per cent of overall investments.
There are 59 companies executing in the promotion zone. Meanwhile, 38 companies are working as free zone investors in Thilawa, with investments of $363 million.
In the past four months this year, three companies invested in promotion zone while one went to free zone.
A company exporting at least 75% of the production in value is registered as a free zone investor, who will be exempted for corporate tax for 7 years starting from commercial operation. Companies, such as logistics that support export-oriented manufacturers, can also be free zone companies. Domestic- oriented manufacturing companies are regarded promotion zone companies and they are eligible to enjoy five-year tax holidays for corporate tax.
There are other tax incentives for free zone and promotion zone investors on the import of capital
goods, raw materials and merchandise and consigned goods and vehicles. For further tax system, one can visit http://www.myanmarthilawa.gov.mm.
Manufacturing sector absorbed the overall foreign investments of US$171 million from Singapore and Japan bringing them into the Thilawa Special Economic Zone (SEZ) between 1 April and 26 July this year.
In addition to manufacturing sector, investments usually flow into trading, services, transportation and logistics, real estate and hotel sectors in the past years.
Singapore placed top in the list with investments of $598 million so far, followed by Japan with $441 million and Thailand with over $170 million. South Korea, Hong Kong, the UK, the UAE, Malaysia, Austria, China (Taipei), Panama, China, Brunei, Viet Nam, Australia and the Netherlands also invested in Thilawa SEZ. Three domestic enterprises are also found in Thilawa SEZ.—GNLM

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