Phoslock Environmental Technologies (ASX:PET) has earned itself a tax cut in China because it can provide the Asian powerhouse with much needed clean water.

The company can clean large bodies of water using a phosphate-based treatment. With water treatment being a big problem in China, authorities have been searching for solutions and a handful of regional governments have trialled its technology.

While it is still early days, initial results have been successful. For example, Phoslock was able to cut the level of phosphorus (a mineral that helps algae grow) in the Xingyun Lake in Yunnan province by 75 per cent. This has led to more deals.

And today its Beijing subsidiary was granted National High – Tech Enterprise Status. This will mean Phoslock will be eligible for a 15 per cent corporate tax rate (down from 25 per cent) and this can be applied back retrospectively for the 2019 calendar year.

It is also eligible for rebate programs, such as for patent applications and trademark registration and expenses.

Phoslock chairman Laurence Freedman said being awarded National High – Tech Enterprise Status would enhance the company’s standing globally.

“This should add to the opportunities we seek, not only in direct water remediation, but in new products, leading to diversification of our revenue streams in the engineering, ground remediation and technical service areas,” he said.

While Phoslock shares only increased 1 per cent this morning, they have more than doubled since May.


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In other ASX tech news today:

Commission-free brokerage Raiz Invest (ASX:RZI) announced total normalised revenue growth of $1.865m for the quarter which was 56 per cent higher than the previous quarter and 123 per cent higher than the first quarter last financial year.

Buy now, pay later company Sezzle (ASX:SZL) completed its first full quarter as a listed company. It now has 7,507 active merchants and 644,509 active customers. These figures are 49 per cent and 50 per cent higher, respectively, than the previous quarter. Its cash flow for the quarter was $US7m ($10.3m) and it has $US27.2m cash at bank.

In non-quarterly tech news, lending platform Wisr (ASX:WZR) has secured a $50m debt facility with National Australia Bank. This can be expanded by up to $200m and beyond its initial two-year availability period.