Myanmar Updates Tax Incentive Rules and Allows CNY for Investment Capital

In March 2026, the Myanmar Investment Commission (MIC) introduced two regulatory updates affecting investors planning new investments or implementing MIC-approved projects.

Minimum Investment Conditions for Tax Incentives

MIC Notification No. 1/202 clarifies the minimum conditions for investments in promoted sectors to qualify for tax exemptions or relief under the Myanmar Investment Law. The notification establishes the following requirements:

• Investors must contribute at least 35% of the total investment amount in cash, as reflected in the relevant proposal or endorsement application.
• Where an investment involves a foreign loan, the investor must obtain approval from the Central Bank of Myanmar, together with a loan repayment schedule, and provide evidence that both the foreign loan proceeds and the capital contribution have been remitted in cash through an authorized dealer bank.

Chinese Yuan Accepted for Investment Capital

The MIC also issued Investment News Bulletin No. 1/2026, confirming that Chinese yuan (CNY) is now accepted as foreign investment capital for applications for MIC permits and endorsements, in addition to US dollars (USD). Investment funds contributed in CNY may be remitted through banks authorized to deal in foreign currency in CNY, following the same process currently applied to investments made in USD.

These developments may affect how foreign investment capital is structured and remitted, as well as the availability of tax incentives for investments under the MIC framework.

By Tilleke & Gibbins, Myanmar, a Transatlantic Law International Affiliated Firm. 

For further information or for any assistance please contact myanmar@transatlanticlaw.com

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