The relevant Management Committee in a Special Economic Zone:

(a)  may stipulate any specifie demarcation as Free Zone or Promotion Zone as may be necessary;

(b) may  stipulate  other  zones  according to the market demand in addition to the Free Zone and Promotion Zone;

(c) may stipulate any export oriented activities as Free Zone Business on each  activity  if  there  is no specifie stipulations as Free Zone or Promotion Zone.

The Free Zone business stipulated by Section 16 Subsection (c) may obtain the privileges of the businesses located in the Free Zone, and other activities which are not stipulated as the Free Zone businesses in the Special Economic Zone may obtain the privileges of the businesses located in the  Promotion Zone.

It shall be deemed that the goods transported from the Free Zone to the  domestic or to the Promotion Zone as imported goods from overseas, and  the transportation of raw materials from overseas to the Free Zone which  are then manufactured in the Free Zone as finished or partly finished  products and then transported to the domestic or to the Promotion Zone  as importation to the domestic;

If there is no other provisions relating to the goods under section20, the  customs duties and other related taxation shall be paid according to the  existing laws.

The manufacturing business located in the Free Zone or Free Zone  businesses shall mainly be export oriented manufacturing business. Such  supporting business and export oriented business in the Special Economic  Zone where there is no specifie stipulation on Free Zone and Promotion  Zone may be determined as Free Zone business.

In the transportation of goods from the Special Economic Zone to other country, if passing the outside areas of the Special Economic Zone, shall be transported by the sealed containers.

The Promotion Zone is the location of the business which is based on the domestic market or the market in the Special Economic Zone and it is also the place where the business such as manufacturing business based on the domestic market, housing, departmental store, banking business, insurance business, school, hospital and recreational places can be invested.

The manufacturing businesses in the Promotion Zone are mainly based on the domestic market, and they can be exported directly from such business and delivered to the Free Zone businesses.

Other businesses situated in Special Economic Zone where there is no specific stipulation of Free Zone or Promotion Zone which are not the Free Zone business shall be specified as the business invested in the Promotion Zone.

The investor is entitled to carry out the following investment business in the Special Economic Zones in accordance with the stipulations:

(a) manufacturing finished products from raw materials, processing goods warehousing, transportation and providing services;

(b) transporting  and  importing raw materials, packaging materials, machinery instruments and equipment, and fuel oils to be used in the investment business from the domestic or overseas to the Special Economic Zone;

(c) trading the manufactured products from the investment business to the domestic and overseas in accordance with the stipulations;

(d) establishing and operating the offices for investment business and overseas  service  works  at  the  stipulated  place  in the Special Economic Zone with the permission of the Management Committee;

(e) carrying out other economic business which are not prohibited by the State, with the permission of the Management Committee.

The person intending to invest in the Special Economic Zone shall apply to the Management Committee to obtain the investment permission in accordance with the rules and regulations stipulated under this Law.

The investor shall:

(a)  register the business, company, organizations to be operated in the Special Economic Zone in accordance with the stipulations at the Branch   Office   of  Directorate  of  Investment  and   Companies Administration which is opened jointly with the Office of Management Committee within the Special Economic Zone;

(b) report the situation of the implementation on the investment business to the Management Committee in accordance with the stipulations;

(c)  compile and keep the business statistics, accounts and records accurately in accordance with the international standards;

(d)  destroy the perished, unusable or sub-standard medicines and food stuffs of the investment business in accordance with the stipulations of the Management Committee at the stipulated place.

The developer and investor:

(a)  shall not sell and transfer the imported machinery, equipment, instruments and motor vehicles to the outside of the Special Economic Zone;

(b) shall repay the exemptions or relief which were enjoyed at the time of import if the materials were sold and transferred under sub-section (a) as a special case.

The investors of the Free Zone may directly purchase raw materials, accessories, parts, equipment, packaging materials and semi-finished goods which need to produce export products or needed to use for export business from the local or the Promotion Zone. When such goods are transported to the Free Zone, the customs clearance procedures shall be abided by.

A hundred percent citizen investment or a hundred percent foreign investment or joint venture between citizen and foreigner can be carried out in the Free Zone.

A hundred percent citizen investment, or a hundred percent foreign investment or joint venture between citizen and foreigner can be carried out in the Promotion Zone.

If the non-resident foreigner has no business established in Myanmar but has the right to carry out business related to the Special Economic Zone under any property and intellectual property right: 

 (a) the payer shall deduct the withholding tax from the source of the  royalty, interest and payments for the business services in  accordance  with the income tax rate prescribed under the Income  Tax Law and pay it to the relevant authority;

 (b) the payer shall deduct the withholding tax from the source of rental  fee and other similar income in accordance with the income tax rate  prescribed under the Income Tax Law and pay it to the relevant  authority.

The investor shall employ only the citizens in the work where high technology and skill are not required.

The investor shall, in employing citizen skilled workers, technicians and staff who are required of high technology and skills, have appointed the citizens at least 25 percent the first two years from the commencing year of operation, at least 50 percent in the second two years, at least 75 percent in the third two years.

The investor, if it is required to appoint more foreign employees than stipulated numbers based on the condition of his investment business, may appoint by the permission of the relevant Management Committee.

The Management Committee may, after causing payment of fees to be made by the developer or the investor for the right to land lease or land use, permit for 50 years. If the investor is desirous of continuing to operate after the expiry of the permitted term, it may renew for 25 years.