No January Welcome to a new edition of our newsletter!

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1 No January 2015 Welcome to a new edition of our newsletter! The Securities Business Supervisory Commission has today announced the requirements to be fulfilled by applicants for a securities business license. License application forms are available from 19 January on; the deadline for the submission of applications is 27 February Please find an English translation of the notification in this newsletter. Please contact us (sebastian@pwplegal.com) if you require an English translation of the Securities Transaction Law. Other noteworthy news: MIC confirms that the income tax rate for MIC companies is 25% ( - This article highlights a common problem in developing countries: There is often not much knowledge about tax laws at the various ministries and other government entities (obviously, with the exception of the Ministry of Finance). Investors have to exercise their own judgment when receiving information about taxation. The next newsletter will contain an update on the most common pitfalls. Requirement to show a parking space when importing a car in Yangon relaxed to a certain extent ( IRD to reassess land values ( Government to issue new, fake-proof revenue stamps for alcohol and cigarettes ( We are sure that you will find this newsletter informative and hope that you will enjoy reading it

2 Securities Business Supervisory Commission Notification 1/2015 Please find below an English translation of the new Electricity Law. - Convenience translation; accuracy not guaranteed - Government of the Republic of the Union of Myanmar Ministry of Finance Securities Business Supervisory Commission Notification No. 1/2015 Specifications according to the type of the Securities License 1. The Securities Business Supervisory Commission of Myanmar is working towards the opening of the Yangon Stock Exchange this year in order to develop the State, create job opportunities and allow people to make their own investments. 2. The Securities Business Supervisory Commission hereby announces the following particulars under section 7 (a) of the Securities Transaction Law for the issuance of licenses to Security Companies for providing services at the Yangon Stock Exchange: (a) The applicant must be established and registered as a limited liability company; (b) The applicant shall include the expression Securities in the name of the Company; (c) The applicant shall contribute the minimum paid-up capital for the following types of licenses: (i) Securities underwriting business license: kyats 15 billion (ii) Securities dealing business license: kyats 10 billion (iii) Securities brokerage business license: kyats 7 billion (iv) Securities investment advisory business license kyats 0.03 billion (d) Most of the directors shall have at least one year experience in the securities business or other businesses related to finance; (e) Directors shall have a degree; (f) Directors must not have been sentenced to a prison term by a court with regard to moral behavior or finance; (g) The applicant must not be blacklisted; (h) The applicant shall, for 10% of the contribution in accordance with the license applied for, buy treasury bonds or open a savings account at a state-owned bank in the name of Securities Business Supervisory Commission or do both in an appropriate ratio; (i) The applicant must have an expert with at least 3 years experience in the Securities Business. (j) The applicant shall have the ability to run the business by IT systems; (k) The applicant shall, if necessary, be able to open branches; (l) The paid-up capital shall not be contributed by a bank loan; (m) The paid-up capital to be contributed shall be from a disclosed source of income which has been legally subject to taxation

3 3. The companies fulfilling the specifications above shall can apply for each type of license contained in article 2 (c) individually. However, the holder of a license contained in article 2 (c - i) shall be able to engage in all four types of business. 4. Application forms are available starting from 19 th January, 2015 at the Securities Business Supervisory Commission, Myanma Economic Bank, Headquarters Building, No , Sule Pagoda Road. 5. The applicant shall submit, to the office of the Securities Business Supervisory Commission, two sets of the application with all the prescribed particulars, enclosed with the required documents, no later than 27 th February, 2015; the envelope must be sealed with the company's seal at three places. The words "Application for a Securities Company License" must be clearly written on the envelope. Applications after the specified date shall not be accepted. From Myanma Alinn Daily Newspaper, 14 th January Please contact us (sebastian@pwplegal.com) if you require an English translation of the Securities Transaction Law. New tender invitations We scan local publications for tender invitations. On our homepage ( you will find, amongst others, tender invitations for the following goods and projects: Myanma Railways: Purchase of equipment Myanma Petrochemical Enterprise: Purchase of high-speed diesel Myanma Oil and Gas Enterprise: Purchase of equipment Department of Rural Development: Purchase of technical auditing services (financed by the World Bank) Irrigation Department: Purchase of construction machineries (financed by a loan from JICA) Myanma Petrochemical Enterprise: Auction of petroleum coke Upcoming events Date Place Title Topic Speaker 21 January 2015 Singapore Investing in Myanmar (joint seminar with Singapore law firm Olswang Asia LLP) Foreign Investment Law; tax and tax breaks; MIC approvals; SDN, FCPA and Bribery Act; the protection of the interests of international From PWP: Sebastian Pawlita, Wint Thandar Oo From Olswang: Rob Bratby, Andrew Stott, Jonathan Choo - 3 -

4 Date Place Title Topic Speaker investors; dispute resolution; responsible investment; opportunities in TMT and banking sectors. 9 February 2015 Yangon What Foreign Banks Need to Know about Law and Taxes in Myanmar 18/19 May 2015 Singapore Mergers & Acquisitions Asia Masterclass Getting started as a branch in Myanmar: Offering services to customers Cross-border loans: Obtaining approval from the Central Bank and/or the MIC; taking security in Myanmar Repatriation of funds De-blocking funds Being able to answer questions from customers: Establishing an entity in Myanmar Obtaining an MIC permit Taxation Labour law Maximising value and minimizing risks through effective communication strategies The power point presentations for some seminars held in the past are uploaded to our homepage ( - scroll down to about the last third of the page). Past newsletters Past newsletters are archived on our homepage (

5 Polastri Wint & Partners Legal & Tax Advisors No. 52, Yaw Min Gyi Street, Royal Yaw Min Gyi Condo, Unit 104, Dagon Township Yangon, Myanmar Phone: +95 (9) Internet: To unsubscribe, please click on the unsubscribe button or send an to - 5 -