- Altech Chemicals (ATC) has announced its application for an Investment Tax Allowance (ITA) incentive has been approved by the Ministry of Finance, Malaysia
- The ITA will be put forward to Altech's HPA processing plant in Johor, Malaysia
- The company expects it won't see corporate profit tax on the business income until after the 10th year of the processing plant's operations
- Company shares are up 2.50 per cent today, with shares trading for 10.3 cents each
Altech Chemicals (ATC) has announced its application for an Investment Tax Allowance (ITA) incentive has been approved by the Ministry of Finance, Malaysia.
The Malaysian Investment Development Authority (MIDA) advised the company of the approval and has, reportedly, been a steady advocate and supporter of its plans to develop its high-purity alumina (HPA) project.
"The company is delighted with the decision of the Ministry of Finance, Malaysia to award ITA incentive to our HPA project for a 10-year period. This is an outstanding outcome for the project and Altech," Managing Director Iggy Tan said.
Altech is developing a 4500 tonnes per annum HPA processing plant in Johor, Malaysia.
The aim is to become a global leading producer of HPA at an outstanding grade of 99.99 per cent to target the lithium-ion battery market.
The project remains under construction and is currently in the second stage but travelling on schedule, according to the MD.
"Construction of our HPA plant continues to progress in accordance with the schedule, completion of the electrical substation is the next significant construction milestone," Iggy stated.
The Malaysia Government has enacted several tax incentives to support economic activity and investment.
The current corporate profits tax rate in the Southeast Asian country is 24 per cent, however, the ITA program means eligible companies may only pay minimal corporate tax.
Altech expects that based on modelling and applying the approved ITA, its HPA project may not be liable for Malaysian profits tax on its statutory business income until after the 10th year of operations.
The company is up 2.50 per cent today, with shares trading for 10.3 cents each at 2:14 pm AEDT.