Posts in category: ECONOMY

In a bid to end the black market and stabilize the volatile prices, transaction of gold bars has to be carried out in the office of Yangon Region Gold Entrepreneurs Association (YGEA), said U Myo Myint, chair of YGEA. “Some traders manipulate the price outside the office. YGEA offers a lower price than the retailers. The cross-border smugglers buy them from the association, causing the price to fluctuate. Some resell them with a gap of K20,000-K30,000 on the digital platform. Such transaction is not allowed to make. The gold transaction can be undertaken inside the YGEA’s office.

Licence for gold bar transaction is also required,” said U Myo Myint. Additionally, YGEA urged the members and gold traders to make gold transactions with immediate payment. Cross-border trade is not allowed without reporting to the association, according to its statement released on 17 May. The statement includes seeking a trade licence for gold shops, a licence for gold bar transactions and taking actions against those unauthorized dealers involved in online trade platforms. After that, gold shops engaged in gold bar transactions must make an inventory list of gold bar and gold trading reports.

Those individuals and gold shops will face legal actions under the existing law if they fail to follow that statement, according to YGEA. Moreover, YGEA also decided on 4 May to import gold from foreign countries in the coming rainy season not to fall short of raw metal supply. Additionally, gold traders and retailers are urged to make gold transactions by adding up to K5,000 to the price set by YGEA. In a bid to stabilize the gold market, gold transactions had better made according to the reference rate of the Central Bank of Myanmar (K1,850), according to the CBM’s statement released on 3 April. YGEA called for an urgent meeting on 8 April.

The meeting determined to carry out gold transactions depending on the CBM’s reference exchange rate. However, it has not come into force yet, said U Myo Myint, chair of YGEA. The US dollar stands at K2,000 in the unofficial black market. The domestic gold price is highly correlated with the global gold price, YGEA stated. During the end of September 2021, a dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a record high of K2.22 million per tical in history. At present, pure gold is worth K2,040,000 per tical (0.578 ounce, or 0.016 kilogramme) in the domestic market, while the global gold price stands at US$1,822 per ounce. 

Source: The Global New Light of Myanmar

The Internal Revenue Department issued to submit income tax return, annual salary statement and annual trade tax declarations. Year of Revenue, Year of Sales / Revenue The year of sales and revenue (accounting period) is from October 1, 2021 to March 31, 2022. Offices that will receive the declaration must submit it to the tax assessment office of the current taxpayer. If the company is not yet a taxpayer, the application must be submitted to the Central Tax Service Office for registration and tax assessment office, and the declaration must be submitted to the tax office designated by the Central Office for Taxation Services. 

If it is an individual who is not yet a taxpayer, it must be submitted to the relevant Township Revenue Office. If the submission is made in person, it will be considered as submission by the Department on the date of receipt of the receipt. In case of sending by post, it will be considered as delivery on the date stamped. In case of electronic submission, the Department will consider the submission on the date of receipt of the electronic form. When filling out the declaration, you must use the relevant forms prescribed by the Internal Revenue Department, and the tax declaration forms can be obtained from the relevant tax offices and the department’s website  at www.ird.gov.mm. The taxpayer is responsible for the accuracy and completeness of the tax declarations, so it is necessary to complete the prescribed declaration forms. 

The declaration form must be signed by the taxpayer himself, and if the tax declaration or part of the tax declaration is amended for a fee, the person making the amendment must also co-sign the declaration. The declaration must be submitted by June 30, 2022 at the latest. Failure to submit tax returns on time will result in a fine of one of the following two fines: (A) one percent of the amount of tax to be paid for each month or part of the month which continues to fail to submit the declaration from the date stipulated to be submitted by the Director-General in addition to five percent of the tax payable; (B) One hundred thousand kyats. If for some reason it is difficult to submit the declaration on time, you can apply to the relevant tax office in advance to extend the tax filing deadline.

Source: Daily Eleven

7th Waxing of Kason 1384 ME
6 May 2022

1. Under the Foreign Exchange Management Law, Foreign Exchange Management Regulations, and Notification No 46/2021 dated 10-11-2021 of the Central Bank of Myanmar, exporters must deposit their export earnings to their accounts in foreign currency within three months from the date of shipment of their goods. The holder of a foreign currency trading licence (AD banks) shall inspect whether exporters receive export earnings within three months from the shipment of their goods according to the evidence of actual exports.
2. All export earnings received from the exports to Asian countries must deposit into the accounts of exporters in foreign currency in Myanmar within 45 days from the date of the shipment while within 90 days for the exports to other countries except for Asian countries. If the exporters fail to do so, they will be taken action under Section 42-a of the Foreign Exchange Management Law.
   

Than Nyein
Governor

The prices of pure gold fell back to below K2 million per tical (0.578 ounce, or 0.016 kilogramme), according to the Yangon Region Gold Entrepreneurs Association (YGEA). At present, 24-carat gold is worth K1,989,000 per tical. The price dip happens to track the fall in global prices. The gold price stands at $1,865 per ounce in the worldwide market. When a 24-carat gold hit $1,950 per ounce in the third week of April, the domestic gold fetched K2,085,000 per tical.

Therefore, the global gold price saw price dips of $85 per ounce within two weeks. Consequently, the domestic gold price was down by K96,000 per tical. In a bid to stabilize the gold market, gold transactions had better made according to the reference foreign exchange rate of the Central Bank of Myanmar (K1,850 per USD), according to the CBM’s statement released on 3 April. YGEA called for an urgent meeting on 8 April. The meeting determined to carry out gold transactions depending on the CBM’s reference exchange rate.

However, it has not come into force yet, said U Myo Myint, chair of YGEA. Last 23 April, officials from the department concerned, YGEA and Mandalay Region Gold Entrepreneurs Association, discussed gold price stability at the meeting. Gold transactions on the CBM’s reference rate, at sight payment, and avoiding price manipulation were also discussed, according to YGEA. The current market condition impedes transactions based on the reference rate. Yet, it will be implemented later, U Myo Myint continued. The US dollar stands at K2,000 in the unofficial black market. Additionally, the domestic gold price is highly correlated with the global gold price, YGEA stated. During the end of September 2021, a dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a record high of K2.22 million per tical in history. 

Source: The Global New Light of Myanmar

THE equity market sees a slight increase in trading in April as against that recorded in March 2022, the Yangon Stock Exchange’s monthly price data indicated. A total of 61,435 shares valued at US$282 million by seven listed companies were traded on the exchange in January 2022, and the trading volume rose to 80,291 shares in February, with an estimated value of K414.9 million. A total of 52,408 shares with an
estimated value of K233.634 million were traded on the exchange in March 2022. Last month, the trading value slightly rose to K276 million, with 53,059 shares traded on the exchange, according to the monthly report of the YSX. At present, shares of seven listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd (TMH), the Ever Flow River Group Public Co., Ltd (EFR) and Amata Holding Public Co., Ltd. (AMATA) were traded in the equity market.

The share prices per unit were closed at K7,600 for FMI, K2,600 for MTSH, K7,700 for MCB, K18,000 for FPB, and K2,600 for TMH K2,600 for EFR and K4,900 for AMATA respectively in April. Regardless of the collapse of the stock markets worldwide, the local equities market has continued operating without stopping trading. Additionally, YSX launched pre-listing board (PLB) on 28 September 2020 in order to provide unlisted public companies with fund-raising opportunities and build a bridge toward listing on YSX. This month, YSX is planning to hold a free webinar regarding the legal aspects of SECM and the registration criteria of PLB. Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market since 20 March 2020.

Only K4.63 billion valued in 887,969 shares by seven listed companies were traded on the exchange in 2021, showing a significant drop of 63 per cent as against 2020, according to the annual report released by the exchange. In 2020, K12.6 billion worth of 1.87 million shares by six listed companies were traded on YSX. In contrast, over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019. The YSX was launched four years ago to improve the private business sector. It disseminates rules and regulations regarding the stock exchange and knowledge of share trading through stock investment webinars and training courses.Those enthusiastic can also join the YSX Telegram channel to easily access daily stock market updates, event info, market research and investor learning tips.

Source: Global New Light of Myanmar

A total of 177 export/import companies got their licences revoked as they failed to deposit the foreign currency earned from exports in the local bank accounts. Legal action has been taken against them for non-compliance with the law, according to a statement released by the Commerce Ministry on 27 April 2022.

Under the Foreign Exchange Management Law, all export earnings in foreign currency must be deposited back into the local account within three months after the goods are loaded.

Licences of 177 companies were cancelled as they did not abide by the notifications issued by the Central Bank of Myanmar, including 16 export companies in 2016, 72 in 2017 and 93 in 2018. According to the notification, the export companies will get their licence revoked and face actions under the existing laws if they fail to comply with them.

Source: The Global New Light of Myanmar

CB Bank announced on April 27 that it could open yuan accounts at CB Bank for Myanmar-China border traders. Foreign Currency (Chinese Yuan) Account Company can be opened at CB Bank for business owners. With the Chin Border Trade service, you can send money directly to Yuan through any account in China and transfer money directly from China to your CB Bank Myanmar Kyats account. Company Account-CNH Account will be opened only with Muse Branch ID.

CNH Account can be opened at Muse Branch by check By withdrawing the book and at other CB Bank open branches. You can get a check book at UFC Branch in Yangon, 19th Street Branch in Mandalay and Ottara Thiri Branch in Nay Pyi Taw. The exchange rate will not be fixed on the yuan / kyat market in Muse every day (bank opening day) and Chinese banks will be asked for the yuan / kyat three times a day to avoid any harm to Myanmar businesses.

CB Bank’s yuan / kyat exchange rate will be set against the market price. You can contact CB Bank Contact Center (+951) 2317770 to open a Foreign Currency (Chinese Yuan) account at CB Bank. Company for customers who open Yuan Account Certificate Company Extract, Application Letter BOD Resolution & Authorized Authorized Person List of (officers with Extract); Export & amp; Import License and IDCard Copy of Authorized Persons are required.

Source: Daily Eleven

Under the Foreign Exchange Management Law, Foreign Exchange Management Regulations and Notification No 46/2021 dated 10-11-2021 of the Central Bank of Myanmar, the holder of a foreign currency trading licence shall inspect whether exporters receive export earnings within three months from the date of the shipment of the goods accordingly to the evidence of the actual exports. The exporters must deposit their export earnings into their banking accounts within three months from the date of the shipment of goods without fail under that law and regulations. However, it was found that exporters failed to follow the law mentioned above, rules and regulations. Therefore, exporters must deposit all their export earnings into their banking accounts within three months from the date of the shipment of goods without fail under the provisions of the Foreign Exchange Management Law and Foreign Exchange Management Regulations. If they fail to do so, action will be taken against them under Section 42(a) of the Foreign Exchange Management Law.

Central Bank of Myanmar
(27.4.2022)

Gold transactions still cannot be fixed on the Central Bank of Myanmar’s reference exchange rate amid the financial difficulty, said U Myo Myint, the Yangon Region Gold Entrepreneurs Association (YGEA) chair.
According to the provisions stipulated in Sections 11, 12 and 13 of the Foreign Exchange Management Law, the foreign exchange earned by locals in Myanmar must be deposited in accounts at the authorized dealers and exchanged for the local currency at the Central Bank of Myanmar’s reference rate of K1,850 per US dollar within one working day, according to the notification released on 3 April.

That is why the YGEA called for an urgent meeting on 8 April. The meeting determined to carry out gold transactions depending on the CBM’s reference exchange rate. However, it has not come into effect yet. “We have difficulty fixing the gold price on the CBM’S reference rate. The border market does not accept the set rate of K1,850. Nonetheless, the transaction is done with the exchange rate margin,” U Myo Myint was quoted as saying. On 23 April, officials from the department concerned, the YGEA and Mandalay Region Gold Entrepreneurs Association discussed gold price stability at the meeting. Gold transaction on the CBM’s reference rate, immediate payments, and avoiding price manipulation was discussed, he said.

Current market condition impedes transaction on the basis of the reference rate. Yet, it will be implemented later, he continued. The US dollar stands at K2,000 in the unofficial black market, while the CBM reference rate is K1,850. The gold price stands at US$1,903 per ounce in the global market. Meanwhile, 24-carat gold is worth K2,045,000 per tical (0.578 ounce or 0.016 kilogramme). The domestic gold price is highly correlated with the global gold price, YGEA stated. During the end of September 2021, a dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a record high of K2.22 million per tical in history.

Source: The Global New Light of Myanmar

Exemption from dollar to kyat exchange rate is Myanmar kyat exchange rate sanctions may be lifted depending on the situation, said Aung Naing Oo, Union Minister for Ministry of Investment and Foreign Trade. He also said the straits as to whether the announcement is a period of time or will it continue forever is depends on the situation regarding the Times’ question, the exemption is granted by a government-appointed committee according to the Central Bank of Myanmar, and also said the ban could be lifted depending on the volatility of the Myanmar Kyat Exchange rate.

The Myanmar Investment Commission has also decided to exempt foreign investment businesses from the Central Bank Declaration. Foreign embassies, INGOS and NGOs are also exempt. They are aware that there may be some adverse effects from this announcement, so we are conducting daily studies and working to find the best solution. “It’s a time of change, so we are trying to be the best for all involved,” he said. The exemption includes new foreign investors and existing investors.

Foreign earnings from seven organizations, including MIC-licensed FDIs, SEZ investments, and state-owned / national international airlines. On April 20, the Central Bank of Myanmar announced that it would be exempt from currency trading. The exemptions mentioned in the statement include foreign direct investment (FDI) activities under the auspices of the Myanmar Investment Commission (MIC), operating in special economic zones.
Includes ongoing investments.

Established an embassy with Myanmar and an embassy in Myanmar Overseas diplomats, family members and similar level diplomats. These include Myanmar nationals holding UNis Laissez Passer travel passports working for the United Nations and its affiliates in Myanmar. This includes foreign agencies, development agencies that are assisting foreigners in Myanmar. International organizations (eg. Red Cross, International and foreign diplomats from INGOs and Development Agencies (eg TICA / JICA). Seven individuals, businesses and organizations have been exempted, including state-owned / national-owned international airlines.

Source: Daily Eleven