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Myanmar's new foreign investment law allows overseas firms to fully own ventures and offers tax breaks and lengthy land leases, state media said, releasing details of legislation passed by parliament

The details in Myanmar-language state newspapers said joint ventures between foreigners and Myanmar citizens or the government would be permitted with any stake ratio agreed between the partners. Foreigners can still own 100 percent of businesses without the need for a local partner, as in the previous law dating from 1988. But there could be restrictions in some areas.

Under the new law, foreign investors can lease land from the government or from authorised private owners for up to 50 years, depending on the type and size of the investment, and the deal can be extended twice, for 10 years each time.

Foreign firms may be entitled to a tax holiday for the first five years of operation and other forms of tax relief may be available depending on the investment, if deemed in the national interest. The old law allowed for a three-year holiday.

Foreign manufacturing companies may be entitled to tax relief of up to 50 percent on profits made from exports. Tax exemption or relief can be granted providing it is reinvested in the business within one year.

The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.

Published on our website on November 9, 2012