The government is offering tax benefits for certain new investments as part of efforts to improve the investment climate amid the deepening global financial crisis, the Coordinating Ministry for Economic Affairs said Monday, Dow Jones reported.
"The government will continue to improve the investment climate and national competitiveness with various policies, which are not only expected to mitigate the impact of the global financial crisis, but also to keep economic growth momentum, which has been on the rise in the last five years," the ministry said in a press release.
The government said that companies investing in certain industries will be subject to lower income tax for six years and will be able to amortize assets over a longer period and may receive compensation for losses for between five and 10 years.
The measures will benefit investors in diverse sectors, including those in steelmaking, forestry, geothermal, animal husbandry, low-rank coal mining, textile, pulp and paper, oil refining, small-scale gas liquefaction, various chemical and agricultural industries, automotive spare parts and electronics.The ministry said the policy will be evaluated within two years. The steps are part of Presidential Instruction No. 5/2008 on Focus Economic Program 2008-2009, and are specifically aimed at improving the investment climate.