The tax exemption allowed for state development projects involving concessional loans and grants

The Ministry of Planning and Finance announced a tax exemption on August 23. The exemption is for companies working on state development projects that are funded by concessional loans or grants. The tax exemption also applies to foreign employees working for the companies.

The exemption includes income tax for both foreign companies and its foreign employees as well as commercial tax on the imported goods, machines, and other required materials for the state development projects.

The tax relief covers the income tax, commercial tax, and tax on service providers for state development projects that are implemented on a concessional loan.

Companies will need to apply for the certificates and other required documents at the Internal Revenue Department to qualify for tax relief.

When applying for tax relief, a foreign employee must provide a recommendation letter from the related government agencies and the companies they work for. Moreover, they will also need to provide recommendation letters from the Budget Department of the Ministry that approved the project.

The main contractors will need to provide a company letter head, the contract, a recommendation letter from the related ministry, and budget department or treasury department.

Subcontractors will need to provide a signed contract between them and the main contractor, and a recommendation letter form the main contractor.

For tax relief and the permit for imported goods, the companies will need to provide a recommendation letter from the Customs Department.

After the companies have provided the required documents, they will get tax relief on income tax and commercial tax.

However, the ministry’s statement said tax relief does not cover other development projects implemented by local and international non-governmental organizations.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/tax-exemption-allowed-state-projects-involving-grants-and-concessional-loans )

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