Altech Batteries Ltd Stock Market Press Releases and Company Profile
Investment Tax Allowance approved for HPA Project
Investment Tax Allowance approved for HPA Project

Perth, Dec 10, 2019 AEST (ABN Newswire) - Altech Chemicals Limited (googlechartASX:ATC) (googlechartA3Y:FRA) is pleased to announce that it has been advised by the Malaysian Investment Development Authority (MIDA) that the application made by its wholly owned Malaysian subsidiary, Altech Chemicals Sdn Bhd for an Investment Tax Allowance (ITA) incentive has been approved under the High Technology category by the Ministry of Finance, Malaysia.

Highlights

- Altech's Investment Tax Allowance (ITA) incentive approved by Malaysian Government

- No corporate profit tax on business income until year 10 of operations

- Positive impact to project free cash flow during the tax relief period

Malaysia has enacted several tax incentives to encourage particular forms of economic activity and investment. The current corporate profits tax rate in Malaysia is 24%, however with certain tax incentives like the Investment Tax Allowance (ITA) program, eligible companies might pay only minimal corporate tax. The ITA program is specifically suitable for companies with large capital investment and provides tax relief period, usually from 5 to 10 years based on the value of qualifying capital expenditure (e.g. factory and machinery).

Altech has estimated that based on modelling and applying the approved ITA, it is expected that its high purity alumina (HPA) project will not be liable for Malaysian profits tax on its statutory business income until after year 10 of operations.

Commenting on the ITA incentive approval, Altech managing director Mr Iggy Tan said, "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. The unwavering advocacy, guidance and support of MIDA for our HPA project through the ITA incentive application process has been much appreciated. Construction of our HPA plant continues to progress in accordance with schedule, completion of electrical substation is the next significant construction milestone.


About Altech Batteries Ltd

Altech Chemical Ltd ASX:ATCAltech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns. 

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

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Contact

Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com



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