Key Regulatory Updates from the Myanmar Investment Commission

Date: 16 March 2026
Issued by: Myanmar Investment Commission

Overview

The Myanmar Investment Commission (“MIC”) has introduced two important regulatory updates aimed at enhancing Myanmar’s investment framework:

1. Acceptance of Chinese Yuan (CNY) for foreign investments
2. Introduction of minimum criteria for tax exemption and relief

These developments reflect a continued effort to facilitate foreign investment while strengthening regulatory oversight and financial discipline.

1. Acceptance of Chinese Yuan (CNY) for Investment

Key Highlights

• Dual Currency Option
   Foreign investors may now contribute capital in:
  • Chinese Yuan (CNY)
  • United States Dollar (USD);or
  • Myanmar Kyat (MMK).
• Currency Consistency Requirement
  • USD investments → transfers must be in USD
  • CNY investments → transfers must be in CNY
• Authorized Banking Channels
   All transactions must be conducted through Authorized Dealer (AD) licensed banks

Implications for Investors

• Facilitates regional investment flows, particularly from China
• Provides flexibility in currency structuring
• May reduce foreign exchange exposure and transaction costs

2. Minimum Criteria for Tax Exemption and Relief (Notification No. 1/2026)

Issued under Section 100(b) of the Myanmar Investment Law, this notification sets out mandatory eligibility thresholds for investors seeking tax incentives in promoted sectors.

Key Requirements

(a) Minimum Cash Contribution

• At least 35% of total investment must be contributed in cash
• Must be consistent with Proposal and Endorsement Applications

(b) Offshore Loan Compliance (if applicable)

• Investors must submit:
  • Loan approval from the Central Bank of Myanmar
  • Loan repayment schedule
• Both:
  • Offshore loan proceeds; and
  • Foreign capital
     must be remitted through Authorized Dealer (AD) licensed banks

Regulatory Note

The MIC reserves the right to amend these criteria based on national policy requirements.

Combined Legal and Commercial Impact

These two updates should be considered together when structuring investments:

• Capital Structuring Strategy
   Investors must balance currency selection (USD vs CNY) with minimum equity requirements (35%)
• Financing Considerations
   Offshore loans are subject to stricter documentation and Central Bank approval
• Compliance and Banking Alignment
   All inflows must be routed through AD licensed banks, reinforcing regulatory transparency

Our Comments

The introduction of CNY investment flexibility alongside stricter tax incentive criteria signals a dual policy direction:

• Facilitation of foreign investment, especially from regional partners
• Enhanced regulatory control over capital inflows and financial structuring

Investors should:

• Carefully structure equity-to-debt ratios at an early stage
• Ensure currency alignment in contracts and financing documents
• Conduct a regulatory compliance review prior to MIC submission

How We Can Assist

Our firm provides comprehensive support in:

• MIC Proposal and Endorsement Applications
• Investment structuring (currency, equity, and financing)
• Regulatory compliance with the MIC and the Central Bank of Myanmar
• Tax incentive eligibility assessment and risk mitigation

SOUTH ASIA CONSULTING