Generally the fil is optional except in the case of a major infrastructure deals 2 manufacturing and 3 state owned enterprise law of 1989 soe law. The parliament approved a new foreign exchange management law. The foreign exchange act online burmamyanmar library. Foreigners cleared to trade on the yangon stock exchange. Myanmar is the new frontier for business in southeast asia. More than 77 businessrelated laws and 149 regulations are translated in english. Foreign exchange management analyzes the economic records of prospective countriesin order to uncover and buy undervalued currencies. A foreign exchange dealer license holder that buys and sells foreign currency is able to open an. There are certain requirements of local participation and ownership for specified businesses under the myanmar foreign investment law. Myanmar eases regulations on foreigncurrency accounts. The central bank of myanmar law pyidaungsu hlattaw law no.
Where any foreign exchange is acquired by any person other than an authorized dealer for any particular purpose, or where any. Myanmar has, therefore, taken steps to unify the countrys multiple exchange rates into a single rate, by replacing the official peg in april 2012 with a managed float through the foreign exchange auction market under the supervision of the cbm. As the implementation of the new law is an ongoing work for the central bank of myanmar cbm, some aspects of the old law may still be. The foreign exchange management law central bank of myanmar. These laws ended myanmars system of dual exchange rates, established central bank independence, and set strong prudential standards for the banking sector. Business administration and compliance in myanmar put together by. Foreign investors will be entitled to income tax exemption for a period of 5 consecutive years as compared to 3 years under the previous law, although the. March 20 interbank foreign exchange market was introduced. It was passed in the winter session of parliament in 1999, replacing the foreign. The government amended its 2012 foreign exchange management law last week to prevent exporters from selling foreign currency. A large and populated country just opening its doors to foreign companies and investors, myanmar is rich with opportunities in many sectors. Dramatic changes in the foreign exchange and money markets have considerably altered the way international business will be conducted in the new millennium. In myanmar, foreign exchange is regulated by the foreign exchange management law 2012 feml 2012 which had repealed the foreign exchange regulation act 1947.
Introduction of the foreign exchange management law in august 2012 regulating myanmar kyat page 35. If youre an investor, corporate finance officer, or. Law amending the foreign exchange management law pyidaungsu hluttaw law no. Foreign investment overview for myanmar myanmar 2016. A legal entity must comply with provisions of the foreign exchange management law. Myanmars new foreign investment law fil was passed on november 2, 2012. Support labour circulation to enable skilled and experienced employees of foreign firms in myanmar to set up their own enterprises, via mechanisms to assist access to finance and land. Pyidaungsu hluttaw law 122012 foreign exchange management law burmese pdf 84 ko. Mlmb covers every law included in burma code, in addition to every myanmar law enacted since 1948 when myanmar became independent. Jll investment guide myanmar foreign exchange controls. Myanmar introduces draft industrial zone law to govern the development of the industrial sector. Myanmar foreign exchange is regulated by the foreign exchange management law 10 aug 2012, which supersedes the foreign exchange regulation act 1 aug 1947 and is the governing law on foreign exchange controls. The foreign exchange management act, 1999 fema is an act of the parliament of india to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in india.
This law shall be called the myanmar investment law. Granted license of foreign exchange transactions to private banks. In case of foreign exchange crisis, the central bank may issue regulations to be implemented for a maximum period of 3 months, imposing certain temporary restrictions on the activity of authorized intermediaries, particularly on the transactions stated in article 5 of the present law, or their foreign exchange position, or any loans. Key amendments foreign investment permitted in medium and smallscale projects the 1994 mines law, together with myanmars foreign investment law, restricted foreign investment to largescale miningprojects. In exercise of the powers conferred by section 47 of the foreign exchange management act, 1999 42 of 1999, and in supersession of notification no. The myanmar government appears to be determined to rectify. Myanmar also known as burma has generally maintained warmer relations with neighbouring states and is a member of the association of southeast asian nations. Foreign nationals can now withdraw from their foreigncurrency bank accounts every weekday, an official from the foreign exchange management department femd under the myanmar central bank said. Pyidaungsu hluttaw law 122012 foreign exchange management law burmese pdf 84 ko see the document pyidaungsu hluttaw law 122012 foreign exchange management law burmese on full screen. It provides the framework for the establishment of a stock exchange. August 2012 the cbm abolished fec foreign exchange certificate.
Myanmar s new foreign investment law fil was passed on november 2, 2012. Relations became strained once more in 2017 with the rohingya crisis. Myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. Central bank of myanmar notification number 72014 30. A person having a bank account abroad according to paragraph 11 shall monthly submit a financial statement to the central bank. Us dollars are converted into mmk using the exchange rate issued by the central bank of myanmar. Major progress on the policy agenda, in program loan oda. This law shall be called the central bank of myanmar law. Under the new foreign exchange regime, the reference rate is determined in the auction mechanism.
Foreign exchange management ca rajkumar s adukia b. While myanmar already has a small stock exchange in operation with two listed securities, the lack of a comprehensive regulatory framework has prevented its development. The draft foreign exchange management law 2019 feml 2019, which has yet to come into force, is aimed at replacing the feml 2012. Yangon, myanmar international lawyers and law firms. The securities exchange law was enacted on 31 july 20. Foreign exchange control citizens, foreigners and companies in myanmar generally must obtain permission from the foreign exchange management department for. Burma law reports 19481988 myanmar law reports 1989until now international law. According to the amending law, all the transactions are done by in accordance with the stipulations of central bank of myanmar. Pursuanttosection4fofthe2015mines law foreign mining companies will be permitted to form joint ventures with small 3. The new regulatory environment recognizes that foreign investment and an active and engaged private sector are crucial to.
Myanmars foreign exchange regulatory framework has evolved substantially since 2011. Crossborder fund transfers are subject to compliance with the foreign exchange management law, 2012 and myanmars tax laws. The law requires all foreign exchange transactions to occur through banks that have been authorised by. Proposed amendments to the foreign exchange management. Its implement details of the provisions of the foreign exchange management law. State law and order restoration council slorc via the burma lawyers. On december 15, 2015 the law amending the foreign exchange management law was passed as law no. In order to ease its stringent foreign exchange controls, the government of myanmar enacted a new foreign exchange management law feml in 2012. In a bid to address unregulated dealings with foreign exchange that has resulted in the volatility of the myanmar kyat, a proposed amendment to the foreign exchange management law of 2012 the feml reinforces and modifies the existing. Foreign direct investment and economic transformation in myanmar 2 ii. Central bank of myanmar issues new round of foreign bank licensing. Companies listed on the yangon stock exchange are taxed at a reduced rate of 20% on total net taxable profits.
On 6 march 2020, the secm released an instruction that trading by resident and nonresident foreigners. The foreign exchange and money markets guide, 2nd edition. Use similar mechanisms to attract diaspora entrepreneurs back to myanmar. The free flow of funds in relation to investment activities in myanmar will also depend on the efficiency with which the cbm functions and the ready availability of the myanmar kyat and freely usable currencies. In july 2019, the securities and exchange commission of myanmar secm announced that foreigners would be permitted to trade on the yangon stock exchange ysx and a framework and schedule for implementing it were then published in september 2019. The goal is to hold these notes until exchange rates improve to mirror favorable developments, such as strong national employment reports and falling budget deficits. The promulgation of the foreign exchange management law in 2012 has significantly liberalised the ability of both locals and foreigners to deal with foreign currency in myanmar. The following expressions contained in this law shall have the meanings.
Historically strained, myanmars foreign relations, particularly with western nations, have improved since 2012. Foreign exchange management act, 1999 an act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in india be it enacted by parliament in the fiftieth year of the republic of india as. Foreign exchange regulation act central bank of myanmar. The management of exchange is administered by the controller of foreign exchange of the exchange department of the central bank of myanmar and the exchange management board pursuant to directives that are issued by the ministry of finance and revenue. A branch of a foreign company is taxed at a 25% rate on myanmarsource income. The central bank is hoping to move its daily foreign exchange auctions to an electronic system before the end of the year, according to u win thaw, head of the banks foreign exchange management department. The advent of the euro, the enormous growth of the swaps market, and the daily increase in the development of derivative instruments are at the forefront of this evolution. Foreign exchange controls in myanmar thai law forum. Myanmar investment law the pyidaungsu hluttaw law no. Laws, bills, rules, regulations and decrees related to. However, myanmar also presents several technical and legal challenges to be managed and overcome by new comers. Myanmar laws, regulations and policies that every investor.
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