MIC divides Myanmar into three categories
The Myanmar Investment Commission (MIC) has established three development categories, offering different income tax exemptions depending on the level of development.
Under the Myanmar Investment Law, the least-developed zones include 14 townships in Kachin state, seven each in Kayah and Kayin, nine in Chin, 35 in the Sagaing region, four in Tanintharyi, five in Bago, 13 in Magway, two each in Mandalay and Mon, 17 in Rakhine, 42 in Shan and 10 in Ayeyawady.
Bago has the most moderately developed zones with 23 townships, followed by Ayeyawady with 17, Shan with 14, Mandalay and Yangon with 13 each, Magway with 12, Mon and Nay Pyi Taw with eight each, Taningtharyi with seven, Kachin with four a nd Sagaing with three.
In addition, 14 townships in Mandalay and 32 in Yangon were listed as "developed" zones.
The investment promotion plan has prioritised townships inst ead of regions and states.
Investors in the least-developed regions will receive an income tax exemption for seven years, while investors in "moderately" developed townships will get five-year exemptions, and investors in developed regions will get three years of tax breaks.
With government approval, the MIC is able to designate the development level of townships, the Ministry of Planning and Finance stated.