Myanmar
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WHY MYANMAR?
Myanmar, strategically holds a position between India and Southeast Asia geographically and economically due to its abundant natural resources like oil and gas as well, as its fertile land supporting agriculture including rice cultivation that sustains its economy well. Myanmar stand out for its culture and history showcased through ancient temples and a mix of diverse ethnic customs that contribute to its special charm and allure in the region of Southeast Asia amid economic changes and obstacles it faces. The country’s promising prospects for development in trade markets tourism opportunities, and enhancing ties position it as a significant participant, in the Southeast Asian landscape.
ADVANTAGES​
The last two decades have been promising for Myanmar in terms of economics with growth figures looking good and GDP per capita rising. Moreover, as the interest on Myanmar as choice of business and investment increases, few major points bring making it a viable bet.
Skilled And Flexible Labor Capacity
Myanmar is rich in manpower with a young and growing level of play. This progress has come about through the general improvement and expansion of education levels within the nation creating an active workforce with advanced capabilities in new and old industries. Investments in schooling is creating human capacity for both old and the new economies especially with regards to the technological and manufacturing sectors.
Geographical Advantages Of Myanmar
Myanmar being in the south eastern corner takes it as a major corridor to important countries by region. The country stands on key highways and tributaries with upgraded and developing transportation channels. Considering the South East Regional economic framework where Myanmar is a member of the ASEAN Economic Community and other countries tapping into internal as well as cross border Free Trade Areas, expansion of market is a realistic expectation. Further to this, as telecoms are being developed, improved connectivity in both internet and satellite services in Myanmar is sooner or later expected.
Benefits Of Being Strategically Located Within Growth Regions
Located near to some of the fastest growing and largest economies of ASEAN countries, Myanmar stands to gain steady externals income particularly through exports to these economies.
Access To Major Markets
Myanmar’s geographical positioning, particularly with regards to China and India, is a tremendous advantage as these happen to be some of the biggest and fastest developing countries in Asia. Because of the ASEAN region, Myanmar has relatively favorable trade conditions with a lot of bordering nations and has been active trying to develop its trade agreements further. The country is availing of new mechanisms of international trade to enhance its market entrance and growth of export.
SIMPLE TAX REGIME
Individual Tax:
A resident individual in Myanmar is required to pay income tax on their global income. However, non-residents are taxed only on their income derived from sources within Myanmar. Individuals are taxed on a progressive scale based on their income levels. The current applicable tax rates are as follows:
– The first Myanmar Kyat (MMK) 2,000,000 is taxed at 0%.
– The next MMK 3,000,000 is taxed at 5%.
– The next MMK 5,000,000 is taxed at 10%.
– The next MMK 5,000,000 is taxed at 15%.
– The next MMK 10,000,000 is taxed at 20%.
– Income exceeding MMK 25,000,000 is taxed at 25%.
Bahrain does not impose personal income tax on its residents, which makes it an attractive destination for highly skilled workers and expatriates.
CORPORATE TAX
The corporate tax rate in Myanmar is currently 25%. Resident companies are taxed on their worldwide income, while non-resident companies are taxed only on their Myanmar-sourced income. A partnership where at least one partner has unlimited liability is treated as a company for tax purposes. Non-resident companies are liable for Corporate Income Tax (CIT) on any income derived from business or investment activities in Myanmar.
Myanmar Companies
Various types of business entities are in existence in Myanmar and each is governed by its own structural and regulatory frameworks:
Sole proprietorship:
This is the simplest form of business entity and is owned and operated by a single individual. The owner is personally liable for all the debts and obligations of the business.
Partnership:
There is minimal paper work required to form a sole proprietorship in Myanmar since it is the most basic type of business ownership. The owner runs the business without any interference and bears all the risks and responsibilities of the business.
Private Limited Liability Company (PLLC)
The Private Limited Liability Company remains one of the most used forms of business in Myanmar. It requires at least two directors and at least one shareholder. Also, share of the organization cannot be offered to the public.
Private Limited Company (PLC):
Myanmar Public Limited Company can issue shares of their company to the outside public, and most of the time these organizations are quoted on stock exchanges.
