PTT Global Chemical Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2016 31
Promotional privileges By virtue of the provisions of the Industrial Investment Promotion Act of B.E. 2520, the Company has been granted privileges by the Board of Investment relating to production of upstream, intermediate and downstream petrochemical, utilities and production support facilities, jetty for transportation and storage of liquid product and transportation by marine vessels, production of petroleum product, research and development of polymer products and chemical formula, lab testing services and refinery. The privileges granted include: (a)
exemption from payment of import duty on machinery approved by the Board;
(b)
exemption from payment of income tax not over 100 percent of investment excluded land and working capital of certain operations for a period of eight years from the date on which the income is first derived from such operations
(c)
a 50% reduction in the normal income tax rate on the net profit derived from certain operations for a period of five years, commencing from the expiry date in (b) above.
As promoted companies, the Company must comply with certain terms and conditions prescribed in the promotional certificates. Summary of revenues from promoted and non-promoted businesses:
Export sales Local sales Service income Total revenue
Promoted businesses
2016 Nonpromoted businesses
1,044 79,325 17 80,386
28,823 197,381 458 226,662
Separate financial statements Promoted Total businesses (in million Baht) 29,867 2,792 276,706 78,293 475 16 307,048 81,101
2015 Nonpromoted businesses
Total
52,971 224,722 362 278,055
55,763 303,015 378 359,156
Certain subsidiaries in the Group have been granted promotional privileges as same as the Company.
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Annual report 2016 | PTT Global Chemical Public Company Limited