On May 24, 2024, the Central Bank of Myanmar (“CBM”) issued a public notice warning individuals against participating in the sale, purchase, exchange, or transfer of unregulated digital currencies, as well as unauthorized money transfers. The CBM has indicated its readiness to enforce regulations by closing bank accounts and pursuing legal action, which may result in imprisonment, fines, or both, in accordance with the Central Bank of Myanmar Law, the Anti-Money Laundering Law and the Financial Institutions Law. The CBM is the sole legal entity authorized to issue currency in Myanmar, as stipulated in the Central Bank of Myanmar Law. The CBM does not recognize digital currencies as official currency, nor has it granted permission to financial institutions within Myanmar to trade them. The existing legal framework, comprising the Foreign Exchange Management Law and the Financial Institutions Law, further cements the illegality of cryptocurrency transactions within the nation’s borders. Four years ago, in May 2020, the CBM issued Notification No. 9/2020, prohibiting all persons residing in Myanmar from engaging in the sale, purchase, or exchange of unregulated digital currencies. The list of prohibited currencies includes widely recognized cryptocurrencies such as Bitcoin (BTC), Litecoin (LTD), Ethereum (ETH), and Perfect Money (PM), with a particular emphasis on transactions conducted through personal Facebook accounts and web pages. Before the issuance of the 2020 notification, the CBM had announced that anyone engaging in digital currency transactions did so at their own risk, but no enforcement measures were being taken at the time. However, after the 2020 notification was issued, the CBM has pursued legal action against persons involved in illegal currency conversion and unauthorized hundi money transfers using Tether (USDT). These enforcement measures have included shutting down bank accounts and initiating legal proceedings under the Anti-Money Laundering Law and the Financial Institutions Law.

The Myanmar Investment Commission (MIC) has announced the opening of the trial period for MIC-permitted or MIC-endorsed companies to reenter investment data for using the Myanmar Investment Online (MyInO) system. The trial period is open until June 30, 2024. The MyInO system allows for the submission and recordal of applications for investment under the Myanmar Investment Law. With the implementation of phase 2 from September 1, 2023, applications for the appointment or resignation of foreign experts and employees within MIC-permitted or MIC-endorsed companies can now be submitted manually or through the Investment Monitoring System available on MyInO. To initiate the application process in MyInO, applicants are required to create an account on the platform. Subsequently, companies holding an MIC permit or endorsement must reenter all investment-related data since the obtaining of the relevant permits/endorsements, in compliance with the announcement. Following this data update, applications can be filed through MyInO. After this trial period, the submission of applications for appointments will be available online. The benefit of using MyInO to submit a foreign expert or employee appointment or resignation application is that the application can be submitted within 30 days of the foreign expert’s arrival in Myanmar. In contrast, hard copy applications must be submitted within seven working days of arrival. According to the Myanmar Investment Law, a foreign expert is one who qualifies as a senior manager, technical or operational expert, or advisor in permitted or endorsed companies within Myanmar. For assistance with completing the investment data reentry process or filing applications for appointment or resignation of foreign experts or employees, or for further details on any aspect of the Investment Monitoring System under MyInO, please contact Tilleke & Gibbins at [email protected].

Myanmar has issued amendments levying a new tax on nonresident Myanmar citizens’ salary income. The State Administration Council (SAC) instituted the tax by amending the Union Tax Law 2023 with Law No. 55/2023 on September 12, 2023, effective from October 1, 2023, to March 31, 2024. As defined by Myanmar’s Income Tax Law, nonresident citizens are those who reside and earn income outside Myanmar at any time during the applicable financial year. The recent amendment to the Union Tax Law levies a tax on nonresident citizens’ salary income earned abroad, as detailed below, in addition to the 10% tax on other types of income obtained abroad without deducting the tax reliefs under sections 6 and 6-A of the Income Tax Law. The tax is payable in the same currency as the income obtained. This tax on nonresidents’ salary income earned abroad can be calculated according to whichever of the two methods below yields the lowest amount of tax due: The applicable salary income tax (0% to 25%) under the Union Tax Law after deduction of allowances for the respective financial year; or A 2% tax on salary income without deducting the amount of the exemption provided by sections 6 and 6-A of the Income Tax Law. Taxpayers may also subtract the amount of foreign taxes paid from the total tax calculated under this law. Employees of an overseas company who work remotely from Myanmar and receive payment from overseas are unaffected by this amendment as they are only involved as resident citizens. Payment Process Nonresident citizens must remit taxes to the Myanmar embassy in their country either monthly, quarterly, annually, or at the time of passport renewal. Evidence of tax payment must also be presented when renewing an overseas worker identification card at the Ministry of Labour, according to

Myanmar’s Ministry of Commerce has announced its E-commerce Guidelines to regulate stakeholders engaging in e-commerce. The guidelines—which were issued on September 5, 2023, and took immediate effect—are mandatory for e-commerce business operators (both entities and individuals), and failure to comply with the guidelines’ requirements may result in penalties under relevant laws. The E-commerce Guidelines come as Myanmar seeks to increase its regulation of e-commerce activities. The guidelines were preceded by a July 2023 notification requiring e-commerce business operators to register their activities with the Ministry of Commerce by January 21, 2024. Definitions “E-commerce” is defined as the sale of goods or services on the internet or other digital platforms. The term also covers sales promotions, marketing, logistics, ordering, and delivery. An “e-commerce platform entrepreneur” is a person who manages an e-commerce platform where two or more entrepreneurs can conduct e-commerce. An “e-commerce business operator” is a person operating or authorized to operate e-commerce activities. This includes e-commerce platform entrepreneurs, entrepreneurs selling on e-commerce platforms, and sellers through social media platforms. Electronic Contracts Acceptable forms of electronic contracts, which must comply with the Electronic Transactions Law, Contract Act, and other relevant laws, include: Click-wrap, click-through, and web-wrap contracts; Browse-wrap contracts; and Agreements between seller and buyer on social media platforms, such as by accepting or rejecting an offer via direct message. Samples of contract forms are appended to the guidelines. Consumer Protection Disclosure notices for consumers must be comprehensible, correct, consistent, simple, accessible, and visible. They can be written in Myanmar language, English, or Myanmar language and another language. They must also comply with the relevant provisions of the Consumer Protection Law. The guidelines provide that if the agreed delivery date is eclipsed by more than 15 days, the consumer may terminate the contract and request a full refund of