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Formosa gets tax discount for steel mill
Formosa Plastics Group, Taiwan’s biggest diversified industrial company, has been granted a corporate tax discount for an US$8 billion steel mill in Vietnam, according to a government statement.
Formosa will pay 10 percent of its profit from the venture as tax over the lifetime of the project, less than half the standard rate of 25 percent, according to a statement posted on the government’s website.
Vietnam earlier this month lowered the corporate tax rate to 25 percent from 28 percent, aiming to ease the burden on companies and combat a slowdown in economic growth. Vietnam’s economy may expand next year at the slowest pace since 1999, according to the International Monetary Fund and the Asian Development Bank.
Formosa in July started building the mill in the Vung Ang Economic Zone of Ha Tinh province, 340 kilometers south of Hanoi, according to an August statement from the government. The plant will have a capacity of 7.5 million tons a year in the first phase, which will be doubled in the second phase.
Bloomberg
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