ATOME receives free trade status for Viletta project in Paraguay.
ATOME PLC (AIM:ATOM) has completed and executed a formal Free Trade Zone (FTZ) contract for the company’s flagship 145MW Villeta fertiliser project in Paraguay.
Villeta is only the seventh FTZ to be granted by Paraguay and gives the project tax-free status, meaning exemptions on municipal, VAT and corporate taxes.
ATOME also recently signed Heads of Terms with Yara International for the long-term offtake of Villeta’s entire production.
Key measures covered in the FTZ agreement include 0.5% Free Trade Zone tax on revenue from export sales to third countries, no CIT; 3% effective corporate income tax (CIT) on profit derived from sales to Paraguay’ and exemptions from CIT and/or withholding taxes.
The agreement runs for a thirty-year term and gives transparent legal and fiscal certainty through the life of the project, added ATOME.
James Spalding, ATOME Paraguay president, commented:
The completion of the Free Trade Zone contract is another milestone achievement, coming quickly after the signing of the Heads of Terms with Yara for offtake of our future Villeta production.
“We are deeply appreciative of the ongoing support for our flagship project by the government and regulatory authorities of Paraguay.”
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ATOME receives free trade status for Viletta project in Paraguay. source
