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The “pioneer tax status” will exempt the company from Malaysia’s 28% corporate income tax rate on all income generated by the additional facility.
The tax exemption, which remains conditional on the expansion facility fulfilling certain unspecified conditions, will apply for a period of five years starting from the date of commercial production.
Biofuels received approval from the Malaysian Government in May to expand its biodiesel facility to produce an additional 200,000 tonnes per annum.
Pre-engineering activities are underway and a feasibility study on the expansion facility is expected to be completed by the end of September.
The company has already exercised an option to lease an additional 24,000 square metre site adjacent to where its first 100,000 tonnes per annum biodiesel plant is being constructed.
The 22-year lease will be on similar terms to its existing lease agreement with the Kuantan Port Consortium and is expected to commence from September.
Mission Biofuels intends to export biodiesel to Europe from its Malaysian plant, which leaves the company unaffected by the Australian Fuel Tax Bill despite its Australian Stock Exchange listing.
