Doing Business 2018 Myanmar Economy Pro le of Myanmar Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Myanmar Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region East Asia & Pacific DB 2018 Rank 190 1 Myanmar Income Category Lower middle income 171 Population 52,885,223 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 1,315 0 100 44.21 City Covered Yangon DB 2018 Distance to Frontier (DTF) 0 100 78.43: Malaysia (Rank: 24) 66.47: Indonesia (Rank: 72) 62.70: Regional Average (East Asia & Pacific) 60.76: India (Rank: 100) 53.01: Lao PDR (Rank: 141) Page 3   44.21: Myanmar (Rank: 171) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Myanmar Ease of Doing Business in Region East Asia & Pacific DB 2018 Rank 190 1 Myanmar Income Category Lower middle income 171 Population 52,885,223 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 1,315 0 100 44.21 City Covered Yangon DB 2018 Distance to Frontier (DTF) 0 100 78.43: Malaysia (Rank: 24) 66.47: Indonesia (Rank: 72) 62.70: Regional Average (East Asia & Pacific) 60.76: India (Rank: 100) 53.01: Lao PDR (Rank: 141) 44.21: Myanmar (Rank: 171) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Myanmar 1 28 55 73 82 Rank 109 125 134 136 155 151 163 164 163 177 183 188 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Myanmar 100 80 75.42 70.33 63.94 60 DTF 52.52 52.30 47.67 40 25.00 24.53 20.39 20 10.00 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.35 Change:+1.68 Change:0.00 Investors Change:+0.26 Borders Change:0.00 Change:0.00 Change:+0.13 Permits Change:0.00 Change:+0.27 Change:+0.35 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.35 Change:+1.68 Change:0.00 Investors Change:+0.26 Borders Change:0.00 Change:0.00 Change:+0.13 Permits Change:0.00 Change:+0.27 Doing Business 2018 Myanmar Change:+0.35 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Myanmar Standardized Company Legal form Limited Liability Company Paid-in minimum capital requirement MMK 0 City Covered Yangon East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Procedure – Men (number) 12 7.0 4.9 1.00 (New Zealand) Time – Men (days) 14 22.7 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 40.1 18.4 3.1 0.00 (United Kingdom) Procedure – Women (number) 12 7.0 4.9 1.00 (New Zealand) Time – Women (days) 14 22.8 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 40.1 18.4 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 15.1 8.7 0.00 (113 Economies) Figure – Starting a Business in Myanmar and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 83.78: Malaysia (Rank: 111) 82.32: Regional Average (East Asia & Pacific) 77.93: Indonesia (Rank: 144) 75.42: Myanmar (Rank: 155) 75.40: India (Rank: 156) 72.56: Lao PDR (Rank: 164) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Myanmar – Procedure, Time and Cost Time Cost 14 40 12 35 ost (% of income per capita) 30 10 25 Time (days) 8 20 6 15 4 Page 6   10 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Myanmar Figure – Starting a Business in Myanmar – Procedure, Time and Cost Time Cost 14 40 12 35 Cost (% of income per capita) 30 10 25 Time (days) 8 20 6 15 4 10 2 5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Myanmar – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Conduct a name check at the Company Registration O ce (CRO) at the 1 day Kyat 1,000 (form fee) Directorate of Investment and Company Administration (DICA) Agency : The Company Registration O ce (CRO) at the Directorate of Investment and Company Administration (DICA) On the rst visit to the Companies Registries O ce (CRO) at the Yangon Directorate of Investment and Company Administration (DICA) o ce, the proposed name for the new business must be checked and cleared. There is an electronic database at DICA since October 2012 that makes it easier to check and to complete this procedure within the same day. The request is made and depending on the workload the check will be done in either a few minutes or a few hours at most, in the meantime the business owner or representative can wait in the o ce. 2 Request business incorporation certi cate 1 day Kyat 5,100 Agency : Directorate of Investment and Company Administration (DICA) (application fee) Once the name check is complete, the following documents are automatically generated by CRO based on the information provided on the application form (to conduct name check) and are checked for accuracy by the applicant: 1. Application cover letter 2. Declaration of registration (Form 1) Page 7   (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Myanmar Details – Starting a Business in Myanmar – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Conduct a name check at the Company Registration O ce (CRO) at the 1 day Kyat 1,000 (form fee) Directorate of Investment and Company Administration (DICA) Agency : The Company Registration O ce (CRO) at the Directorate of Investment and Company Administration (DICA) On the rst visit to the Companies Registries O ce (CRO) at the Yangon Directorate of Investment and Company Administration (DICA) o ce, the proposed name for the new business must be checked and cleared. There is an electronic database at DICA since October 2012 that makes it easier to check and to complete this procedure within the same day. The request is made and depending on the workload the check will be done in either a few minutes or a few hours at most, in the meantime the business owner or representative can wait in the o ce. 2 Request business incorporation certi cate 1 day Kyat 5,100 Agency : Directorate of Investment and Company Administration (DICA) (application fee) Once the name check is complete, the following documents are automatically generated by CRO based on the information provided on the application form (to conduct name check) and are checked for accuracy by the applicant: 1. Application cover letter 2. Declaration of registration (Form 1) 3. Situation of registered o ce form 4. Statement of company objectives 5. Directors’ details (Form 26) 6. Memorandum of Association 7. Articles of Association The applicant checks the accuracy of the generated documents, and goes back to the directors/shareholders to obtain relevant signatures on the application form and memorandum and articles of association. 3 Obtain signature of the directors before a lawyer or certi ed public 1 day Kyat 40,000 for accountant witnessing the Agency : Law, Audit or Accounting rm signature of the memorandum and The memorandum and article of association need to be signed by the articles of shareholder and then a Lawyer or CPA signs as a witness. The cost of association witnessing the signature of memorandum and article of association is about MMK 40,000-50,000 (The fee depends on the law or accounting rm). 4 Payment of stamp duty and registration fees 1 day Kyat 500,000 Agency : Directorate of Investment and Company Administration (DICA) (registration fees) + Page 8   Kyat 50,000 (stamp association witnessing the signature of memorandum and article of association is about Doing MMK 2018 (The 40,000-50,000 Business fee depends on the law or accounting rm). Myanmar 4 Payment of stamp duty and registration fees 1 day Kyat 500,000 Agency : Directorate of Investment and Company Administration (DICA) (registration fees) + Kyat 50,000 (stamp Registration fee is kyat 500,000. In addition, the stamp duty applies to the duty for articles of registration of articles of association and the registration of memorandum association) + Kyat of association as follows: 15,000 (stamp duty - the stamp duty for for registration of articles of association is kyat 50,000 in for memorandum of case share capital is below kyat 100,000,000, and kyat 150,000 if share capital is above kyat 100,000,000 (point 10 of Schedule 1 of the Myanmar Stamp association) Duty Act); - the stamp duty for registration of memorandum of association is kyat 15,000 if it is accompanied by the articles of association, and kyat 150,000 otherwise (point 39 of Schedule 1 of the Myanmar Stamp Duty Act). Payment of registration fee and stamp duties can be done at the one-stop- service for company registration at DICA. 5 Open Bank Account 1 day no charge Agency : Bank After paying registration fees DICA issues a letter to con rm that the company has been registered. The applicant takes this letter to a bank and opens an bank account in the company's name. 6 Obtain certi cate of incorporation 3 days included in Agency : Yangon Directorate of Investment and Company Administration procedure 2 (DICA) After opening a bank account, the applicant returns to the CRO (DICA) to submit evidence of bank account to DICA and to obtain the incorporation certi cate. It needs to be reviewed and signed by the Assistant Director and the Deputy Director of the CRO. The applicant is informed by the DICA when the de nitive certi cate is ready to be picked up. The certi cate is valid for 5 years. 7 Submit certi cation of registration documents (CRD) 1 day Kyat 25,000 for Form Agency : Yangon Directorate of Investment and Company Administration 6(VI) + Kyat 25,000 (DICA) for Form 26(XXVI) Entrepreneurs submit Form 6 (Shareholder list) and Form 26 (Director list) to DICA. These forms contain information on whom owns shares in the company, the list of board of directors, a description of the roles, and other pertinent information. 8 Obtain a seal or a rubber stamp 1 day Kyat 2,000 Agency : Sealmaker According to the law, a company seal is required for a newly constituted rm to operate. However, in practice a rubber stamp is used and accepted. It can be produced in shops in downtown Yangon for a cost of 2,000-3,500 kyat. 9 Register with the Tax O ce 1 day no charge Agency : Tax O ce A limited liability company must register with the Myanmar tax authorities. Currently, there are no clear guidelines on the registration process; the current practice is for companies to submit necessary information and documents to the tax o ce. The tax o ce will assign a Matter Coding to each taxpayer, although this is not considered a TIN. TIN will only be issued if Page 9   the company is registered under the Large Taxpayers O ce. Newly to operate. However, in practice a rubber stamp is used and accepted. It can Doing be in shopsMyanmar produced2018 Business in downtown Yangon for a cost of 2,000-3,500 kyat. 9 Register with the Tax O ce 1 day no charge Agency : Tax O ce A limited liability company must register with the Myanmar tax authorities. Currently, there are no clear guidelines on the registration process; the current practice is for companies to submit necessary information and documents to the tax o ce. The tax o ce will assign a Matter Coding to each taxpayer, although this is not considered a TIN. TIN will only be issued if the company is registered under the Large Taxpayers O ce. Newly established companies are initially registered under the Medium Taxpayers O ce. 10 Register for commercial tax 1 day no charge Agency : Township Internal Revenue Department O ce Registration for commercial tax (similar to VAT): companies are obliged to register with the tax authorities one month before the start of their business if the business is expected to generate turnover subject to commercial tax (a broad array of products fall into this category, including manufactured goods). Furthermore, within 10 days of starting a business the tax authorities should also be informed. DICA compiles a list of newly registered companies each month and sends this information to the relevant townships where the businesses are located. 11 Registration of employees at the Labor o ce in township 1 day no charge Agency : Labor o ce Registration of employees at the ministry is mandatory for labor tax purposes. 12 Registration with the Social Security Board for social security bene ts 1 day no charge Agency : Social security board Company needs to register employees at the social security o ce for health and pension fund bene ts. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the Page 10   receiving all necessary inspections economy’s largest business city. For 11 economies the data are also Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Myanmar Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 11   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Myanmar Standardized Warehouse Estimated value of warehouse MMK 82,650,509.70 City Covered Yangon East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Procedures (number) 15 15.2 12.5 7.00 (Denmark) Time (days) 95 138.2 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 3.8 2.2 1.6 0.10 (5 Economies) Building quality control index (0-15) 9.0 8.9 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Myanmar and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.19: Malaysia (Rank: 11) 75.25: Lao PDR (Rank: 40) 70.33: Myanmar (Rank: 73) 69.60: Regional Average (East Asia & Pacific) 66.08: Indonesia (Rank: 108) 38.80: India (Rank: 181) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Myanmar – Procedure, Time and Cost Time Cost 2.5 90 80 2 Cost (% of warehouse value) 70 60 Time (days) 1.5 50 40 1 30 20 0.5 10 0 0 1 *2 *3 *4 5 6 *7 8 9 10 11 12 13 * 14 * 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 12   component indicators. Doing Business 2018 Myanmar Figure – Dealing with Construction Permits in Myanmar – Procedure, Time and Cost Time Cost 2.5 90 80 2 Cost (% of warehouse value) 70 60 Time (days) 1.5 50 40 1 30 20 0.5 10 0 0 1 *2 *3 *4 5 6 *7 8 9 10 11 12 13 * 14 * 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Myanmar and comparator economies – Measure of Quality 14 13.0 13.0 12 11.5 10 9.0 8.9 Index score 8 6.5 6 4 2 0 Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Details – Dealing with Construction Permits in Myanmar – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a land title certi cate and a cadastral map at the Yangon City 30 days MMK 12,945 Development Committee (YCDC) Land Department Agency : Yangon City Development Committee (YCDC)- City Planning and Land Administration Department BuildCo visits the Yangon City Development Committee (YCDC) Land Department in order to request a land title certi cate, which will prove ownership of the land that is to be developed, and a cadastral map, which will show the plot's dimensions. 2 Obtain Soil Investigation Report 21 days MMK 826,505 Agency : Private company Page 13   Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Doing Business 2018 Myanmar Details – Dealing with Construction Permits in Myanmar – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a land title certi cate and a cadastral map at the Yangon City 30 days MMK 12,945 Development Committee (YCDC) Land Department Agency : Yangon City Development Committee (YCDC)- City Planning and Land Administration Department BuildCo visits the Yangon City Development Committee (YCDC) Land Department in order to request a land title certi cate, which will prove ownership of the land that is to be developed, and a cadastral map, which will show the plot's dimensions. 2 Obtain Soil Investigation Report 21 days MMK 826,505 Agency : Private company BuildCo needs to obtain a soil investigation report prior to submitting application for building permit. The report can be obtained from any private company conducting such geotechnical studies, and the cost of the report is based on median estimates) 3 Obtain consent from the neighbors 1 day no charge Agency : Neighbors A standard consent form obtained at the YCDC must be lled out by all the neighbors of the land which will be developed. This is usually performed through an agent as well. 4 Obtain a recommendation letter or certi cate from the ward 1 day no charge Agency : Ward The ward administrator or chief will issue a letter certifying the address of the builder. This is usually performed through an agent. 5 Obtain debt clearance letter from YCDC Township Executive O ce 7 days no charge Agency : YCDC Design Department The YCDC Design Department will check that the designs, which must be prepared by a licensed engineer, are compliant with building and urbanism standards and regulations. 6 Apply and obtain a construction permit at the YCDC Engineering 30 days MMK 504,000 Department (Building) Agency : YCDC Engineering Department (Building) The builder or representative must submit all the following in order to begin the application process for the construction permit: • Owner ID and family certi cate • Application forms • Land title certi cate from the YCDC Land Department • Certi ed Cadastral map from the YCDC Land Department • Neighbor consent form completed • Drawings and structural designs – 3 sets • Bills of quantity (BQ) – 3 sets • Recommendation letter from the Ward stating that the applicant is alive and was applied by the applicant signed by himself. • Soil Investigation Report. Page 14   prepared by a licensed engineer, are compliant with building and urbanism Doing standards Business and regulations. 2018 Myanmar 6 Apply and obtain a construction permit at the YCDC Engineering 30 days MMK 504,000 Department (Building) Agency : YCDC Engineering Department (Building) The builder or representative must submit all the following in order to begin the application process for the construction permit: • Owner ID and family certi cate • Application forms • Land title certi cate from the YCDC Land Department • Certi ed Cadastral map from the YCDC Land Department • Neighbor consent form completed • Drawings and structural designs – 3 sets • Bills of quantity (BQ) – 3 sets • Recommendation letter from the Ward stating that the applicant is alive and was applied by the applicant signed by himself. • Soil Investigation Report. Once the application has gone through all the internal reviews at the YCDC, BuildCo is informed that the permit is ready and is provided with an invoice of how much is to be paid. The payment is either made at the YCDC Engineering (Building) O ce directly or at the YCDC Bank for large amounts. About one week after the payment has been made, the construction permit can be picked up. 7 Receive an inspection from a YCDC technician 1 day no charge Agency : YCDC Engineering Department (Building) A YCDC technician will visit the plot of land in order to check that it corresponds to the land certi cate and designs provided and to check the conditions for water and electricity connections. While there, the technician also checks with neighbors to ensure there are no land disputes or other issues. The inspector will issue a report to the YCDC, and the builder will be informed when they can proceed with the permit application. Soil tests are only required by law for buildings 3 stories or higher or for large factories, though some builders prefer to perform the soil test, regardless of the building height. In such cases, the cost is MMK 150,000 and it takes about 2 weeks. Similarly, seismic and environmental checks are not required for small warehouses. 8 Request and receive foundation inspection 1 day no charge Agency : YCDC Engineering Department (Building) The Inspection Department of the YCDC will have received all the plans submitted by BuildCo and will be ready to conduct inspections during construction. BuildCo is supposed to inform the YCDC at the beginning of three stages: foundation, oors, and roo ng. 9 Request and receive ooring inspection 1 day no charge Agency : YCDC Engineering Department (Building) The Inspection Department of the YCDC will have received all the plans submitted by BuildCo and will be ready to conduct inspections during construction. BuildCo is supposed to inform the YCDC at the beginning of three stages: foundation, oors, and roo ng. 10 Request and receive roo ng inspection 1 day no charge Agency : YCDC Engineering Department (Building) The Inspection Department of the YCDC will have received all the plans Page 15   submitted by BuildCo and will be ready to conduct inspections during construction. BuildCo is supposed to inform the YCDC at the beginning of Doing three stages: Business foundation, 2018 oors, and roo ng. Myanmar 10 Request and receive roo ng inspection 1 day no charge Agency : YCDC Engineering Department (Building) The Inspection Department of the YCDC will have received all the plans submitted by BuildCo and will be ready to conduct inspections during construction. BuildCo is supposed to inform the YCDC at the beginning of three stages: foundation, oors, and roo ng. 11 Request a building completion certi cate from the YCDC 1 day MMK 126,000 Agency : YCDC Engineering Department (Building) After construction work is completed, a building completion certi cate must be requested at the YCDC Engineering (Building) Department. 12 Receive nal inspection to obtain completion certi cate from the YCDC 3 days no charge Agency : YCDC Engineering Department (Building) Two to three days after requesting the completion certi cate, YCDC engineers will visit the warehouse to check that it has been built according to the plans. 13 Obtain completion certi cate from the YCDC 21 days no charge Agency : YCDC Engineering Department (Building) After the visit, the completion certi cate will be issued if there are no problems. Request and obtain an excavation permit from YCDC for the well 5 days MMK 40,000 14 Agency : YCDC Engineering Department (Building) Drill well for water supply 7 days MMK 1,600,000 15 Agency : Private Firm Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Myanmar – Measure of Quality Answer Score Building quality control index (0-15) 9.0 Quality of building regulations index (0-2) 1.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 0.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Available only on request. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Page 16   Quality control during construction index (0-3) 2.0 Takes place simultaneously with previous procedure. Doing Business 2018 Myanmar Details – Dealing with Construction Permits in Myanmar – Measure of Quality Answer Score Building quality control index (0-15) 9.0 Quality of building regulations index (0-2) 1.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 0.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Available only on request. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections at 1.0 construction? (0-2) various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 0.0 Which parties (if any) are held liable by law for structural aws or problems in the No party is held 0.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the law. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 2.0 What are the quali cation requirements for the professional responsible for verifying Minimum 1.0 that the architectural plans or drawings are in compliance with existing building number of years Page 17   Professional Doing cations Myanmar certi 2018 Business index (0-4) 2.0 What are the quali cation requirements for the professional responsible for verifying Minimum 1.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering. What are the quali cation requirements for the professional who supervises the Minimum 1.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This Page 18   has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) construction management. Doing Business 2018 Myanmar Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 19   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Myanmar Standardized Connection Price of electricity (US cents per kWh) 9.1 Name of utility Yangon City Electricity Supply Board (YESB) City Covered Yangon East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Procedures (number) 6 4.5 4.7 2 (United Arab Emirates) Time (days) 77 71.6 79.1 10 (United Arab Emirates) Cost (% of income per capita) 1155.3 712.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 0 3.7 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Myanmar and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 94.33: Malaysia (Rank: 8) 85.21: India (Rank: 29) 83.87: Indonesia (Rank: 38) 72.23: Regional Average (East Asia & Pacific) 52.65: Lao PDR (Rank: 149) 52.52: Myanmar (Rank: 151) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Myanmar – Procedure, Time and Cost Time Cost 1000 70 800 Cost (% of income per capita) 60 50 Time (days) 600 40 30 400 20 200 10 Page 20   getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Myanmar Figure – Getting Electricity in Myanmar – Procedure, Time and Cost Time Cost 1000 70 800 Cost (% of income per capita) 60 50 Time (days) 600 40 30 400 20 200 10 0 0 1 *2 3 4 5 *6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Myanmar and comparator economies – Measure of Quality 9 8 8 7 7 6 Index score 5 5 4 3.7 3 2 2 1 0 0 Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Details – Getting Electricity in Myanmar – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request new connection at utility 28 calendar days MMK 2,487,212.6 Agency : Township Yangon Electricity Supply Board O ce (YESB) The application for a new electricity connection begins with the contractor paying a visit to the relevant township where the warehouse is located. At this stage, the desired load and type of equipment (air conditioning, machines) that will operate in the warehouse must be speci ed. The following documents must also be submitted: o Building completion certi cate (BCC) o Business license or company registration certi cate o NRC National Registration Card o Family certi cate Page 21   o Ward administrator reference letter (obtained during construction permit) Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Doing Business 2018 Myanmar Details – Getting Electricity in Myanmar – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request new connection at utility 28 calendar days MMK 2,487,212.6 Agency : Township Yangon Electricity Supply Board O ce (YESB) The application for a new electricity connection begins with the contractor paying a visit to the relevant township where the warehouse is located. At this stage, the desired load and type of equipment (air conditioning, machines) that will operate in the warehouse must be speci ed. The following documents must also be submitted: o Building completion certi cate (BCC) o Business license or company registration certi cate o NRC National Registration Card o Family certi cate o Ward administrator reference letter (obtained during construction permit) o Electrical design o Capacity load expected After the inspection of the client's warehouse by the township, the application is internally distributed among the levels of government, from the township to the district, without the intervention of the applicant. There are 4 districts in Yangon, divided into 33 townships. The application is then internally distributed from the district to the city level (Yangon Electricity Supply Board), without the interaction of the applicant. Once the application has received the approval of all levels – township and district – the contractor is informed and he/she can go back to the township o ce to pick up the invoice which will indicate the fees that need to be paid to the state in relation to the connection to the electrical grid. The payment of the administrative fees provided by the township is made at a designated state-owned bank. 2 Receive site inspection by technician from utility 1 calendar day MMK 0 Agency : Township Yangon Electricity Supply Board O ce (YESB) The township technician will inspect to see how far the warehouse is from the main transmission line, the posts, etc. A map of the necessary connection works is made. 3 Await completion of connection works by licensed electrician 21 calendar days MMK 15,717,850 Agency : Private contractor A licensed electrician hired by the client carries out the connection works. A transformer is required for any connections above 30 kVa and the client buys it. The time of the procedure depends on whether the transformer is imported from Japan or China, which clients prefer to do in the majority of cases. 4 Obtain meter installation by utility 21 calendar days MMK 442,379.76 Agency : Township Yangon Electricity Supply Board O ce (YESB) Upon the completion of the connection works, the customer goes to YESB Township O ce to ll up the application form for the meter box installation, together with information on the size of transformer (160 kVA for our case study). The YESB Township O ce will approve it and submit it to the YESB District O ce, which in turn approves it and submits it to the YESB Head O ce Testing and Supporting Unit. The Testing and Supporting Unit Page 22   imported from Japan or China, which clients prefer to do in the majority of Doing cases. Business 2018 Myanmar 4 Obtain meter installation by utility 21 calendar days MMK 442,379.76 Agency : Township Yangon Electricity Supply Board O ce (YESB) Upon the completion of the connection works, the customer goes to YESB Township O ce to ll up the application form for the meter box installation, together with information on the size of transformer (160 kVA for our case study). The YESB Township O ce will approve it and submit it to the YESB District O ce, which in turn approves it and submits it to the YESB Head O ce Testing and Supporting Unit. The Testing and Supporting Unit approves it, obtains a required meter box from YESB warehouse, and checks the functioning of the meter box. Then, the YESB Head O ce sends the application, together with the meter box, back to the YESB District O ce for approval on the meter box, after which back to the YESB Township O ce for approval of the meter box. While the process should be internal with various level of YESB o ces, in practice the customer often follows up to expedite - i.e. the customer will take the form from YESB Township O ce to District O ce and again to Head O ce Testing and Supporting Unit to get the necessary approvals 5 Receive inspection of connection works and internal wiring by Ministry 7 calendar days MMK 0 of Industry Agency : Ministry of Industry An engineer from the inspection o ce of the Ministry of Industry is informed by the township and conducts an inspection of the connection works and internal wiring, mostly to check compliance with safety standards. 6 Receive inspection of transformer by inspector from township 4 calendar days MMK 450,000 Agency : Township Yangon Electricity Supply Board O ce (YESB) Once the meter box is attached, the customer writes an application letter to the YESB Township O ce to inform them that the transformer is installed and attached to the meter box, together with a list of material used with details (e.g. size of 160 kVA, manufacturer of transformer) and photos (two- pole transformer). The inspector from YESB Township O ce will make a site visit only at this stage (and this is a di erent team from the meter installation team in Procedure 4). The inspector will then produce a report to YESB Township O ce and submit it to the YESB District O ce for approval to discharge the transformer (i.e. connectivity), which then submits to the YESB Head O ce for approval. Upon the YESB Head O ce’s approval, the District O ce will issue a connection permit to the customer and commission to discharge the transformer. Five engineers must be present at the time of discharging: from the YESB District O ce, YESB Head O ce Testing and Supporting Unit, Test Lab, Distribution, and YESB Township O ce. Takes place simultaneously with previous procedure. Details – Getting Electricity in Myanmar – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. Page 23   Takes place simultaneously with previous procedure. Doing Business 2018 Myanmar Details – Getting Electricity in Myanmar – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A Mechanisms for monitoring outages (0-1) 0 Does the distribution utility use automated tools to monitor outages? No Mechanisms for restoring service (0-1) 0 Does the distribution utility use automated tools to restore service? No Regulatory monitoring (0-1) 0 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on No reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 0 Are e ective tari s available online? No Link to the website, if available online Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable Page 24   To make the data comparable across economies, several assumptions If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Myanmar Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value MMK 82,650,509.70 City Covered Yangon Page 25   East Asia & OECD high Doing Business 2018 Myanmar Standard Property Transfer Property value MMK 82,650,509.70 City Covered Yangon East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Procedures (number) 6 5.5 4.6 1.00 (4 Economies) Time (days) 85 74.5 22.3 1.00 (3 Economies) Cost (% of property value) 4.1 4.3 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 5.5 15.8 22.7 29.00 (Singapore) Figure – Registering Property in Myanmar and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.06: Malaysia (Rank: 42) 69.55: Lao PDR (Rank: 65) 59.01: Indonesia (Rank: 106) 57.21: Regional Average (East Asia & Pacific) 52.30: Myanmar (Rank: 134) 47.08: India (Rank: 154) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Myanmar – Procedure, Time and Cost Time Cost 4.5 80 4 70 3.5 Cost (% of property value) 60 3 Time (days) 50 2.5 40 2 30 1.5 20 1 10 0.5 0 0 1 2 3 4 5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 26   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Myanmar Figure – Registering Property in Myanmar – Procedure, Time and Cost Time Cost 4.5 80 4 70 3.5 Cost (% of property value) 60 3 Time (days) 50 2.5 40 2 30 1.5 20 1 10 0.5 0 0 1 2 3 4 5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Myanmar and comparator economies – Measure of Quality 30 27.5 25 20 Index score 15.8 15 11.3 10.5 10 8.2 5.5 5 0 Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Details – Registering Property in Myanmar – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain a land clearance certi cate and map at the Yangon 1 month The official fee City Development Council (YCDC) Land Administration Department schedule is: Agency : Yangon City Development Council (YCDC) City Planning and Land Administration Department - Form fees: 200 kyat On a rst visit to the YCDC Land Administration Department, it is the - For the certified responsibility of the land owner (seller) to request two things: a certi ed map: copy of the land record and a map speci cally produced for property sale which is valid for 1 year. For the land clearance certi cate there is a pilot 10,125 kyat for zone system on the YCDC where it can be requested online, but it is still under 1 (most recently development. developed zone); 12,945 kyat for zone Page 27   2 (second developed Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Doing Business 2018 Myanmar Details – Registering Property in Myanmar – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain a land clearance certi cate and map at the Yangon 1 month The official fee City Development Council (YCDC) Land Administration Department schedule is: Agency : Yangon City Development Council (YCDC) City Planning and Land Administration Department - Form fees: 200 kyat On a rst visit to the YCDC Land Administration Department, it is the - For the certified responsibility of the land owner (seller) to request two things: a certi ed map: copy of the land record and a map speci cally produced for property sale which is valid for 1 year. For the land clearance certi cate there is a pilot 10,125 kyat for zone system on the YCDC where it can be requested online, but it is still under 1 (most recently development. developed zone); 12,945 kyat for zone 2 (second developed zone); and 15,225 kyat for zone 3 (first developed zone) 2 Request and obtain appraisal from the township Inland Revenue 2-3 weeks no cost (paid in Department stamp duty) Agency : Township Inland Revenue Department The buyer will take the certi ed copy of the land record and the map obtained at the YCDC to the relevant township Inland Revenue Department branch where the property is located. After application, an ‘appraisal committee’ will decide the value of the property according to the location and other considerations. The appraisal committee meets once a week, and once the case has been reviewed the interested parties are informed of the value so that they may proceed to pay the stamp duty upon it. 3 Pay stamp duty at the Township Inland Revenue Department 1 day 2% Stamp duty + 2% Agency : Township Inland Internal Revenue Department Additional tax The buyer pays the 2% stamp duty + 2% additional tax on the property value as established by the appraisal committee. In cases where the buyer cannot show the legal origin of the funds, additional fees of around 30% of the established property value will apply in order to ‘legalize’ the money being used for the transaction. 4 Register new land title at the Land Records Department of the Ministry 1 month Low fee, between of Agriculture and Irrigation 1,000 and 6,000 kyat Agency : Land Record department, Ministry of Agriculture and Irrigation After payment of the stamp duty, the buyer visits the Ministry of Agriculture and Irrigation in order to register the new land title. 5 Announce the property transfer in the newspaper 3 days Approximately Agency : Local news papers, such as Weekly Eleven, Myanmar Business Today 18,000 kyat for or the Myanmar Times publication in a local newspaper The parties must announce the agreement for property transfer in one of the state newspapers. Anyone with claims to the property or other objections has 2 weeks (o cially) to come forward, though usually a month will go by before the nal name change can be made in the books. Page 28   6 Change ownership at the YCDC 1 day The official fee After payment of the stamp duty, the buyer visits the Ministry of Agriculture Doing and Irrigation Business in order 2018 to register the new land title. Myanmar 5 Announce the property transfer in the newspaper 3 days Approximately Agency : Local news papers, such as Weekly Eleven, Myanmar Business Today 18,000 kyat for or the Myanmar Times publication in a local newspaper The parties must announce the agreement for property transfer in one of the state newspapers. Anyone with claims to the property or other objections has 2 weeks (o cially) to come forward, though usually a month will go by before the nal name change can be made in the books. 6 Change ownership at the YCDC 1 day The official fee Agency : Yangon City Development Council (YCDC) Land Administration schedule is as Department follows: - 30,000 kyat for zone Once a month has passed after publication in the newspaper without any 1 (most recently objections, the name change can be recorded in the books at the YCDC. developed) - 40,000 kyat for zone 2 (second developed zone) - 50,000 kyat for zone 3 (firstly developed zone) Takes place simultaneously with previous procedure. Details – Registering Property in Myanmar – Measure of Quality Answer Score Quality of the land administration index (0-30) 5.5 Reliability of infrastructure index (0-8) 0.0 What is the institution in charge of immovable property registration? YCDC City Planning and Land Administration Department, Land Record Department of Ministry of Agriculture and Irrigation, Internal Revenue Department In what format are the majority of title or deed records kept in the largest business city Paper 0.0 —in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: YCDC City Planning and Land Administration Department Page 29   In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 Takes place simultaneously with previous procedure. Doing Business 2018 Myanmar Details – Registering Property in Myanmar – Measure of Quality Answer Score Quality of the land administration index (0-30) 5.5 Reliability of infrastructure index (0-8) 0.0 What is the institution in charge of immovable property registration? YCDC City Planning and Land Administration Department, Land Record Department of Ministry of Agriculture and Irrigation, Internal Revenue Department In what format are the majority of title or deed records kept in the largest business city Paper 0.0 —in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: YCDC City Planning and Land Administration Department In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation number for properties? Transparency of information index (0–6) 2.0 Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: https://app.ycdc. gov.mm Is the applicable fee schedule for any property transaction at the agency in charge of No 0.0 Page 30   immovable property registration in the largest business city made publicly available– Link for online access: https://app.ycdc. Doing Business 2018 Myanmar gov.mm Is the applicable fee schedule for any property transaction at the agency in charge of No 0.0 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a Other 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: Internal Guideline requires that YCDC City Planning and Land Administration Department deliver a new title within 23 working after receiving the case back from the Land Records Department of Ministry of Agriculture and Irrigation. Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Only 0.0 intermediaries (notaries, lawyers, etc.) Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, in person 0.0 —and if so, how? Link for online access: Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Page 31   Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred Doing at the cadastral Business or mapping agency? 2018 Myanmar Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 3.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private No 0.0 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Township Court property worth 50 times gross national income (GNI) per capita and located in the in Yangon City, 4 largest business city, what court would be in charge of the case in the rst instance? District Courts, Yangon Regional Court. How long does it take on average to obtain a decision from the rst-instance court for Between 2 and 3 1.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Page 32   Do unmarried Doing Business men and unmarried 2018 Myanmar women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Strength of legal rights index (0-12) 2 7.2 6.0 12.00 (4 Economies) Page 33   Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Myanmar Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Strength of legal rights index (0-12) 2 7.2 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 0 4.2 6.6 8.00 (34 Economies) Page 34   Credit registry coverage (% of adults) 0.0 16.0 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Myanmar East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Strength of legal rights index (0-12) 2 7.2 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 0 4.2 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 16.0 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 0.0 22.3 63.7 100.00 (23 Economies) Figure – Getting Credit in Myanmar and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 80.00: Malaysia (Rank: 20) 75.00: India (Rank: 29) 65.00: Indonesia (Rank: 55) 57.00: Regional Average (East Asia & Pacific) 55.00: Lao PDR (Rank: 77) 10.00: Myanmar (Rank: 177) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Myanmar and comparator economies 9 8 8 8 7.2 7 6 6 6 Index score 5 4 3 2 2 1 0 Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Details – Legal Rights in Myanmar Strength of legal rights index (0-12) 2 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Page 35   Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Doing Business 2018 Myanmar Details – Legal Rights in Myanmar Strength of legal rights index (0-12) 2 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and No obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Myanmar and comparator economies 10 8 8 7 7 Index score 6 5 4.2 4 2 0 0 Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Details – Credit Information in Myanmar Page 36   0 0 Myanmar Doing Business 2018 India Myanmar Indonesia Lao PDR Malaysia East Asia & Pacific Details – Credit Information in Myanmar Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? No No 0 Are both positive and negative credit data distributed? No No 0 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No No 0 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? No No 0 By law, do borrowers have the right to access their data in the credit bureau or credit registry? No No 0 Can banks and financial institutions access borrowers’ credit information online (for example, No No 0 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial No No 0 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 0 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 0 0 Number of firms 0 0 Total 0 0 Percentage of adult population 0.0 0.0 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 37   transactions; Available legal remedies (damages, Percentage of adult population 0.0 0.0 Doing Business 2018 Myanmar Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Extent of conflict of interest regulation index (0- 2 5.7 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 3 4.8 6.4 Page 38   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Myanmar East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Extent of conflict of interest regulation index (0- 2 5.7 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 3 4.8 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Myanmar and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 80.00: India (Rank: 4) 80.00: Malaysia (Rank: 4) 63.33: Indonesia (Rank: 43) 52.33: Regional Average (East Asia & Pacific) 31.67: Lao PDR (Rank: 172) 25.00: Myanmar (Rank: 183) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Myanmar and comparator economies – Measure of Quality Myanmar 3 0 3 1 5 3 India 8 7 8 8 10 7 Indonesia 7 5 10 7 7 2 Lao PDR 1 1 6 4 4 3 Malaysia 8 9 10 6 8 7 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 East Asia & Pacific 5.6 4.6 6.2 3.9 5.3 6.1 0 10 20 30 40 50 60 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Myanmar – Measure of Quality Answer Score Page 39   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Myanmar Details – Protecting Minority Investors in Myanmar – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 2 Extent of disclosure index (0-10) 3 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Existence of a 1.0 con ict without any speci cs Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) No disclosure 0.0 obligation Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 0 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively No 0.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Not liable 0.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Not liable 0.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by No 0.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 3 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) No 0.0 Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Page 40   Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Can the Doing obtain any plainti 2018 Business documents from the defendant and witnesses at trial? (0-3) Myanmar No 0.0 Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) At the discretion 0.0 of the court Extent of shareholder governance index (0-10) 3 Extent of shareholder rights index (0-10) 5 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? No 0.0 Do shareholders automatically receive preemption rights every time Buyer issues new No 0.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their No 0.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 1 Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising No 0.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% No 0.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Page 41   Buyer pay declared MustBusiness Doing dividends within a maximum period set by law? 2018 Myanmar No 0.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 3 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? No 0.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general No 0.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? No 0.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, Page 42   and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Myanmar Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Payments (number per year) 31 21.8 10.9 3 (Hong Kong SAR, China) Page 43   return, but within the tax assessment period. Doing Business 2018 Myanmar East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Payments (number per year) 31 21.8 10.9 3 (Hong Kong SAR, China) Time (hours per year) 282 189.2 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 31.2 33.6 40.1 18.47% (32 Economies) Postfiling index (0-100) 45.54 56.55 83.45 99.38 (Estonia) Figure – Paying Taxes in Myanmar and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.07: Malaysia (Rank: 73) 72.42: Regional Average (East Asia & Pacific) 68.04: Indonesia (Rank: 114) 66.06: India (Rank: 119) 63.94: Myanmar (Rank: 125) 54.18: Lao PDR (Rank: 156) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Myanmar and comparator economies – Measure of Quality 80 68.82 70 60 56.55 52.65 49.31 Index score 50 45.54 40 30 18.57 20 10 0 Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Details – Paying Taxes in Myanmar Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% of Notes contribution (number) Payments (hours) tax rate Tax base profit) on TTR Page 44   Corporate income tax 4 64 25% as of taxable 26.28 Doing Business 2018 Myanmar Figure – Paying Taxes in Myanmar and comparator economies – Measure of Quality 80 68.82 70 60 56.55 52.65 49.31 Index score 50 45.54 40 30 18.57 20 10 0 Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Details – Paying Taxes in Myanmar Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% of Notes contribution (number) Payments (hours) tax rate Tax base profit) on TTR Corporate income tax 4 64 25% as of taxable 26.28 April 1, 2013 profit Stamp duty on property 1 5.00% price of 2.42 transfer sale Property tax 1 20.00% land and 1.75 building Capital gains tax 1 10.00% capital 0.51 gains Employer paid - Social 12 111 2.50% gross 0.26 security contributions salaries Commercial tax 12 107 5.00% turnover 0.00 not included Employee paid - Social 0 jointly 1.50% 0.00 not security contributions included Totals 31 282 31.2 Details – Paying Taxes in Myanmar – Tax by Type Taxes by type Answer Profit tax (% of profit) 26.8 Labor tax and contributions (% of profit) 0.3 Other taxes (% of profit) 4.2 Details – Paying Taxes in Myanmar – Measure of Quality Page 45   Doing Business 2018 Myanmar Details – Paying Taxes in Myanmar – Measure of Quality Answer Score Post ling index (0-100) 45.54 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? No Restrictions on VAT refund process Input tax on capital purchase is irrecoverable Percentage of cases exposed to a VAT audit (%) Not applicable Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) No VAT refund 0 per case study scenario Time to obtain a VAT refund (weeks) No VAT refund 0 per case study scenario Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 10.0 84.4 Time to complete a corporate income tax audit (weeks) 0.7 97.77 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. Page 46   a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Myanmar Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) Traffic delays and road police checks while from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 47   of agriculture or industry, national security agencies and any other Doing Business 2018 Myanmar government authorities. East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Time to export: Border compliance (hours) 142 55.9 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 432 387.5 149.9 0.00 (19 Economies) Time to export: Documentary compliance 144 68.2 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 140 112.1 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 230 70.5 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 457 431.0 111.6 0.00 (27 Economies) Time to import: Documentary compliance 48 65.6 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 210 111.4 25.6 0.00 (30 Economies) Figure – Trading across Borders in Myanmar and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.75: Malaysia (Rank: 61) 69.97: Regional Average (East Asia & Pacific) 66.59: Indonesia (Rank: 112) 62.98: Lao PDR (Rank: 124) 58.56: India (Rank: 146) 47.67: Myanmar (Rank: 163) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Myanmar – Time and Cost Time Cost 250 230 500 457 432 200 400 Time (hours) 142 144 Cost (USD) 150 300 210 100 200 140 48 50 100 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 48   Doing Business 2018 Myanmar Figure – Trading across Borders in Myanmar – Time and Cost Time Cost 250 230 500 457 432 200 400 Time (hours) 142 144 Cost (USD) 150 300 210 100 200 140 48 50 100 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Myanmar Characteristics Export Import Product HS 07 : Edible vegetables and certain roots and HS 8708: Parts and accessories of motor tubers vehicles Trade partner India China Border Yangon port Yangon port Distance (km) 12 12 Domestic transport time 5 5 (hours) Domestic transport cost 200 200 (USD) Details – Trading across Borders in Myanmar – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 11.0 195.0 Export: Clearance and inspections required by agencies other than customs 96.0 65.0 Export: Port or border handling 48.0 171.7 Import: Clearance and inspections required by customs authorities 110.0 285.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 120.0 171.7 Details – Trading across Borders in Myanmar – Trade Documents Export Import Page 49   (USD) Doing Business 2018 Myanmar Details – Trading across Borders in Myanmar – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 11.0 195.0 Export: Clearance and inspections required by agencies other than customs 96.0 65.0 Export: Port or border handling 48.0 171.7 Import: Clearance and inspections required by customs authorities 110.0 285.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 120.0 171.7 Details – Trading across Borders in Myanmar – Trade Documents Export Import Customs Export Declaration Bill of lading Bill of Lading SAD delivery order Export license Customs import declaration Commercial Invoice Commercial invoice Packing list Packing list Sales Contract Cargo release order Shipping Instruction Terminal handling receipts Letter of Credit or General Remittance Exemption Certificate Technical standard/health certificate Payment advice referring Inward Telegraphic Transfer Private No./Inward Telegraphic Transfer Certificate of Origin Government No Certificate of Origin SOLAS certificate Fumigation Certificate Phytosanitary Certificate SOLAS certificate Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. Page 50   SOLAS certificate Doing Business 2018 Myanmar Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value MMK 5,813,077.00 Court name Lahta Township Court City Covered Yangon East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Time (days) 1160 565.7 577.8 164.00 (Singapore) Cost (% of claim value) 51.5 47.3 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 3.0 7.9 11.0 15.50 (Australia) Figure – Enforcing Contracts in Myanmar and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 66.61: Malaysia (Rank: 44) 56.22: Lao PDR (Rank: 97) 53.09: Regional Average (East Asia & Pacific) Page 51   of judicial processes Quality Business Doing index (0-18) 2018 Myanmar 3.0 7.9 11.0 15.50 (Australia) Figure – Enforcing Contracts in Myanmar and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 66.61: Malaysia (Rank: 44) 56.22: Lao PDR (Rank: 97) 53.09: Regional Average (East Asia & Pacific) 47.23: Indonesia (Rank: 145) 40.76: India (Rank: 164) 24.53: Myanmar (Rank: 188) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Myanmar – Time and Cost Time Cost 1600 80 1445 70.3 1400 70 Cost (% of claim value) 1160 1200 60 51.5 47.3 Time (days) 1000 50 800 37.3 40 31.0 31.6 577.8 565.7 600 30 403.2 443 425 21.5 400 20 200 10 0 0 East Asia & India Indonesia Lao PDR Malaysia Myanmar OECD high income Pacific Figure – Enforcing Contracts in Myanmar and comparator economies – Measure of Quality Myanmar 1.5 0 1.5 India 2.3 1.5 2 4.5 Indonesia 2.5 1.8 0.6 3 Lao PDR 2.5 2 0 1 Malaysia 2.5 3 2.5 4 OECD high income 2.5 2.9 2 3.6 East Asia & Pacific 2.2 2 1.3 3 0 2 4 6 8 10 12 Page 52   14 East Asia & India Indonesia Lao PDR Malaysia Myanmar OECD high income Pacific Doing Business 2018 Myanmar Figure – Enforcing Contracts in Myanmar and comparator economies – Measure of Quality Myanmar 1.5 0 1.5 India 2.3 1.5 2 4.5 Indonesia 2.5 1.8 0.6 3 Lao PDR 2.5 2 0 1 Malaysia 2.5 3 2.5 4 OECD high income 2.5 2.9 2 3.6 East Asia & Pacific 2.2 2 1.3 3 0 2 4 6 8 10 12 14 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Myanmar Indicator Time (days) 1160 Filing and service 65 Trial and judgment 815 Enforcement of judgment 280 Cost (% of claim value) 51.5 Attorney fees 47 Court fees 2.5 Enforcement fees 2 Quality of judicial processes index (0-18) 3.0 Court structure and proceedings (-1-5) 1.5 Case management (0-6) 0.0 Court automation (0-4) 0.0 Alternative dispute resolution (0-3) 1.5 Details – Enforcing Contracts in Myanmar – Measure of Quality Page 53   Alternative dispute resolution (0-3) 1.5 Doing Business 2018 Myanmar Details – Enforcing Contracts in Myanmar – Measure of Quality Answer Score Quality of judicial processes index (0-18) 3.0 Court structure and proceedings (-1-5) 1.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0 2. Small claims court 0.0 2.a. Is there a small claims court or a fast-track procedure for small claims? No 2.b. If yes, is self-representation allowed? n.a. 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 0.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? No 1.b. If yes, are the time standards set for at least three court events? n.a. 1.c. Are these time standards respected in more than 50% of cases? n.a. 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 0.0 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 54   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Myanmar 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 1.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 0.0 2.a. Is voluntary mediation or conciliation available? No 2.b. Are mediation, conciliation or both governed by a consolidated law or n.a. consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., n.a. if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 55   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Myanmar Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Recovery rate (cents on the dollar) 14.7 35.4 71.2 93.1 (Norway) Time (years) 5.0 2.6 1.7 0.4 (Ireland) Page 56   Cost (% of estate) 18.0 20.6 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Myanmar East Asia & OECD high Indicator Myanmar Pacific income Overall Best Performer Recovery rate (cents on the dollar) 14.7 35.4 71.2 93.1 (Norway) Time (years) 5.0 2.6 1.7 0.4 (Ireland) Cost (% of estate) 18.0 20.6 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 4.0 7.0 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Myanmar and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 67.61: Indonesia (Rank: 38) 62.51: Malaysia (Rank: 46) 40.78: Regional Average (East Asia & Pacific) 40.75: India (Rank: 103) 20.39: Myanmar (Rank: 164) 0.00: Lao PDR (Rank: 168) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Myanmar – Time and Cost Time Cost 6 25 21.6 5.0 20.6 5 4.3 18.0 20 Cost (% of estate) Time (years) 4 15 3 2.6 10.0 9.0 9.1 10 2 1.7 1.1 1.0 1 5 0 0 East Asia & India Indonesia no practice Malaysia Myanmar OECD high income Pacific Lao PDR Figure – Resolving Insolvency in Myanmar and comparator economies – Measure of Quality Myanmar 2 2 0 Page 57   India 4.5 2 1 1 East Asia & India Indonesia no practice Malaysia Myanmar OECD high income Pacific Lao PDR Doing Business 2018 Myanmar Figure – Resolving Insolvency in Myanmar and comparator economies – Measure of Quality Myanmar 2 2 0 India 4.5 2 1 1 Indonesia 5 3 2 0.5 Lao PDR 2 2 0 0.5 Malaysia 2 2 2 0 OECD high income 5.4 2.8 2.3 1.9 East Asia & Pacific 3.7 2.3 1.2 1 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Myanmar and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 90 81.3 80 70 64.7 60 50 40 35.4 30 26.4 20 14.7 10 0.0 0 Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Details – Resolving Insolvency in Myanmar Indicator Answer Explanation Proceeding foreclosure The most likely applicable proceeding for the Mirage's case would be a foreclosure by judicial sale. After Mirage's default, BizBank would initiate the foreclosure by filing an application with the Western District Court in Yangon. Foreclosure involves the sale of the property by the lender. Outcome piecemeal sale The hotel will stop operating and Mirage's assets will be sold by the court appointed bailiffs in a public auction. Time (in years) 5.0 The foreclosure procedure until BizBank is repaid some or all of the money owed to it will take approximate 5 years. Usually after 1 year since Mirage's default, BizBank would initiate foreclosure by filing the petition at the Court. During the above mentioned 1-year period, BizBank needs to obtain formal documentary evidence indicating the endeavors made but Page 58   failed to solve the payment issue. After receiving the application, it takes at least half a year Myanmar India Indonesia Lao PDR Malaysia East Asia & Pacific Doing Business 2018 Myanmar Details – Resolving Insolvency in Myanmar Indicator Answer Explanation Proceeding foreclosure The most likely applicable proceeding for the Mirage's case would be a foreclosure by judicial sale. After Mirage's default, BizBank would initiate the foreclosure by filing an application with the Western District Court in Yangon. Foreclosure involves the sale of the property by the lender. Outcome piecemeal sale The hotel will stop operating and Mirage's assets will be sold by the court appointed bailiffs in a public auction. Time (in years) 5.0 The foreclosure procedure until BizBank is repaid some or all of the money owed to it will take approximate 5 years. Usually after 1 year since Mirage's default, BizBank would initiate foreclosure by filing the petition at the Court. During the above mentioned 1-year period, BizBank needs to obtain formal documentary evidence indicating the endeavors made but failed to solve the payment issue. After receiving the application, it takes at least half a year for the Court to review the case, notify Mirage, hold hearings until the final order to receive the case is made. Within the following 1.5 to 2.5 years, the Court would make a final decision on BizBank's claim after rounds of legal debates. Then it takes another year for the Court to pass a degree and execution order based on which BizBank will be entitled to open an execution proceeding. In addition, the court needs to decide on all the third party claims, including tax authorities, which usually be settled within 1 year. After announcing the execution of the foreclosure proceeding, the Court will appoint a bailiff/judicial receiver to gather information on Mirage's assets, prepare them for sale and conduct the sale of Mirage's assets in a public auction. It takes approximate 1 year to complete the sale and distribute proceeds. Cost (% of 18.0 The costs associated with the case would amount to approximately 18% of the value of the estate) debtor's estate. The cost incurred during the entire insolvency process mainly includes attorneys' fees (10%), auctioneer's fees (2%), fees of accountants and other professionals (4%), and court fees (2%). Recovery rate (cents on the 14.7 dollar) Details – Resolving Insolvency in Myanmar – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 4.0 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 proceedings? le for liquidation only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts Page 59   as they mature dollar) Doing Business 2018 Myanmar Details – Resolving Insolvency in Myanmar – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 4.0 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 proceedings? le for liquidation only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 2.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? No 0.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit No 0.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 0.0 Which creditors vote on the proposed reorganization plan? N/A 0.0 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 0.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Page 60   Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment Doing Businessof the 2018insolvency representative? Myanmar Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to No 0.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity Page 61   leave; (iv) whether employees on maternity leave the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Myanmar Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Myanmar Answer Hiring Page 62   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Myanmar Details – Labor Market Regulation in Myanmar Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 68.3 Ratio of minimum wage to value added per worker 0.4 Maximum length of probationary period (months) n.a. Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 0.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 100.0 Restrictions on night work? Yes Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 10.0 Paid annual leave for a worker with 5 years of tenure (working days) 10.0 Paid annual leave for a worker with 10 years of tenure (working days) 10.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 10.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 63   Third-party Doing approval Business 2018 if nine workers are dismissed? Myanmar No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3 Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure 4.3 Severance pay for redundancy dismissal for a worker with 5 years of tenure 17.3 Severance pay for redundancy dismissal for a worker with 10 years of tenure 34.7 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 18.8 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 98.0 Receive 100% of wages on maternity leave? No Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? 36.0 Business Reforms in Myanmar In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Myanmar implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Registering Property: Myanmar made registering property less costly by reducing the stamp duty. Getting Credit: Myanmar improved access to credit information by adopting a regulation allowing the establishment of credit bureaus. DB2017 Starting a Business: Myanmar made starting a business easier by reducing the cost to register a company. It also simpli ed the Page 64   process by removing the requirement to submit a reference letter and a criminal history certi cate in order to incorporate a Minimum contribution period for unemployment protection (months)? 36.0 Doing Business 2018 Myanmar Business Reforms in Myanmar In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Myanmar implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Registering Property: Myanmar made registering property less costly by reducing the stamp duty. Getting Credit: Myanmar improved access to credit information by adopting a regulation allowing the establishment of credit bureaus. DB2017 Starting a Business: Myanmar made starting a business easier by reducing the cost to register a company. It also simpli ed the process by removing the requirement to submit a reference letter and a criminal history certi cate in order to incorporate a company. Getting Credit: Myanmar improved its credit information system by enacting a law that allows the establishment of a new credit bureau. Trading across Borders: Myanmar made trading across borders more di cult by experiencing delays and higher cost at processing incoming cargo at the port of Yangon. Labor Market Regulation: Myanmar introduced a minimum wage and changed the regulation of severance pay. DB2016 Starting a Business: Myanmar made starting a business easier by eliminating the minimum capital requirement for local companies and streamlining incorporation procedures. Getting Electricity: The Ministry of Electric Power facilitated the process to obtain a new electricity connection in Myanmar by reducing delays through fewer approvals. Paying Taxes: Myanmar made paying taxes more costly and complicated for companies by increasing the rate paid by employers and ceiling for social security contributions, requiring additional documents for commercial tax returns and introducing quarterly preparation, ling and payment of corporate income tax. At the same time, Myanmar increased the rate of allowable depreciation. DB2015 Trading across Borders: Myanmar made trading across borders easier by reducing the number of documents required for exports and imports. DB2014 Paying Taxes: Myanmar made paying taxes less costly for companies by reducing the corporate income tax rate. Page 65   DB2014 Paying Doing 2018 made Taxes: Myanmar Business paying taxes less costly for companies by reducing the corporate income tax rate. Myanmar Page 66