Sectoral Incentives: Agric and Power Sectors

Flashcards covering sectoral incentives for the agricultural and power sectors, specifically focusing on tax exemptions, holidays, and allowances.

What specific tax are companies engaged in agricultural trade or business exempt from?

Minimum company income tax

What are the two conditions for the tax exemption of interest earned from agricultural loans?

The moratorium must be not less than $18\,months$ and the rate of interest must not be more than the base lending rates at the time of the loan.

What is the duration of the initial company income tax exemption for agricultural production and its potential extension?

An initial period of $4\,years$ with a possible extension for $2\,years$ contingent on satisfactory performance.

What is the duration of the company income tax holiday provided to the power sector?

A $3\,years$ company income tax holiday with a possible renewal for an additional $2\,years$.

Under what condition are dividends tax-free for the power sector during the tax holiday period?

If the investment was made in foreign currency.

Which items purchased for gas utilization in downstream petroleum operations are exempt from Value Added Tax (VAT)?

Plant, machinery, and equipment.

What is the percentage of the additional investment allowance for the power sector that does not reduce the value of the asset?

$$15\%$$