Stamp Duty On Loan Agreement In Myanmar

The importation of goods is subject to customs. The importation of certain project equipment may be subject to restrictions, but current contractors have, in most cases, found solutions, provided they have obtained MIC`s approval. Stamp duty is subject to stamp duty (before or on the day of signing) and registration fees, except in some cases for security documents kept off the coast or with a public regulator. There is no direct translation for the term “loan contract” in Myanmar. In addition to the lack of specific provisions regarding loan contracts in the Burma Code, there have been issues relating to stamp duty in force. The current stamp duty law provides for a stamp duty of 0.5% and a fine of 10 times for the late application of stamps in the “obligation” category. Foreign credits granted by MIC (for MIC companies) and cbm require administrative authorizations. There is a 15 per cent withholding tax on interest on offshore loans. As of November 26, 2019, the fine for unpaid/underpaid stamp duty will be either MMK500 or three times the unpaid/underpaid stamp duty. Note that this is applied at the discretion of the tax agent. Financing agreements with foreign lenders and branches of foreign banks in Myanmar are generally subject to foreign law. As a general rule, what judicial law governs project agreements? As a general rule, what judicial law governs funding agreements? What are the issues under national law? In Myanmar, it is customary for loans from financial institutions to be secured by mortgages on real estate.

This tender focuses on the procedure for registering real estate mortgages for foreign financial institutions in Myanmar and a change in practice expected in this regard. Administrative authorizations are required by foreign lenders wishing to grant loans, including the approval of the CBM and MIC. Previously, stamp duty had to be paid before or on the day of the execution of instruments in Myanmar. Otherwise, a penalty equal to 10 times the unpaid/underpaid stamp duty would be incurred.