PETALING JAYA: The impact of the planned cut in Indonesia’s corporate tax, while positive for Malaysian planters with operations there, will depend on the profitability of the individual companies.
Maybank Investment Bank (IB) Research said that while the tax cut would theoretically lift the bottomline of the plantation companies operating there by up to 4%, the tax benefits will not be proportionate to their planted area or production contribution.
This, it said, was because the profitability of each estate was dependent on its tree age profile and productivity.
...