Dung Quat, Vietnam’s only oil refinery, received various tax incentives from the government last week, including a four-year income tax exemption.
Apart from the exemption, Binh Son Refining and Petrochemical Co, which runs the 130,500 barrels-per-day refinery, only needs to pay half its corporate tax for the first nine years after it begins earning taxable incomes.
Over the course of 30 years, it will be subject to an income tax of 10 percent, compared to the current 25 percent applied to other businesses, according to the government’s website.
Dung Quat, which started operations in February 2009, is also allowed to claim depreciation deductions for its main production equipment in 20 years.
Nguyen Hoai Giang, chief executive officer of Binh Son, told news website VnExpress that the incentives will help the plant operate effectively and make it appealing to investors.
Dung Quat needs up to US$2 billion to expand its processing capacity by nearly a third to 9.5-10 tons.
The plant resumed production early July following an eight-week shutdown for equipment checks.
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