The relationship between companies characteristics and tax Incentive: Listed manufacturing companies in Malaysia

Tax incentive is very useful for companies in tax planning for minimizing their tax liability. However, there is a concern in the complexity of the tax incentives procedures, as a result most of the application are from MNCs. This raise question whether the tax incentives available are fairly benefi...

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Main Author:	Mufidah Syafiqah, Mihat
Format:	Thesis
Language:	eng eng
Published:	2022
Subjects:	HJ Public Finance
Online Access:	https://etd.uum.edu.my/10697/1/s828410_01.pdf https://etd.uum.edu.my/10697/2/s828410_02.pdf
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id	my-uum-etd.10697
record_format	uketd_dc
spelling	my-uum-etd.106972023-11-14T09:13:39Z The relationship between companies characteristics and tax Incentive: Listed manufacturing companies in Malaysia 2022 Mufidah Syafiqah, Mihat Abdul Manan, Rusniza College of Business (COB) College of Business HJ Public Finance Tax incentive is very useful for companies in tax planning for minimizing their tax liability. However, there is a concern in the complexity of the tax incentives procedures, as a result most of the application are from MNCs. This raise question whether the tax incentives available are fairly benefits to all companies, especially the new and SMEs especially manufacturing companies as one the industries that have intensity in capital expenditure. The purpose of this study is to identify the relationship between company characteristics and tax incentive of Malaysian manufacturing companies listed on KLSE. About five hundred forty three (543) annual reports were analysed in this study for both descriptive and regression analysis. The annual reports were extracted from Bursa Malaysia, which focusing from year 2017 until 2019. This study found that firm size, profitability and leverage have significant impact on tax incentive (proxied by the effective taxnrate). Firm size measured by total share outstanding has been found to have positive significant relationship with tax incentive. While, firm profitability measured by ROA has been found to have negative significant relationship with tax incentive; and in contrast ROE has positive significant impact on tax incentive. Other factors such as Big4 audit firm and firm size (measured by total asset and revenue) have no significant relationship at all. Results also revealed that the average effective tax rate of firm-year observations is more than standard tax rate of Malaysia at 24% which implies that the level of tax incentive application and utilization is still at low level where it could not minimize companies’ tax liability suggesting low tax planning activities. 2022 Thesis https://etd.uum.edu.my/10697/ https://etd.uum.edu.my/10697/1/s828410_01.pdf text eng public https://etd.uum.edu.my/10697/2/s828410_02.pdf text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abdul Manan, Rusniza
topic	HJ Public Finance
spellingShingle	HJ Public Finance Mufidah Syafiqah, Mihat The relationship between companies characteristics and tax Incentive: Listed manufacturing companies in Malaysia
description	Tax incentive is very useful for companies in tax planning for minimizing their tax liability. However, there is a concern in the complexity of the tax incentives procedures, as a result most of the application are from MNCs. This raise question whether the tax incentives available are fairly benefits to all companies, especially the new and SMEs especially manufacturing companies as one the industries that have intensity in capital expenditure. The purpose of this study is to identify the relationship between company characteristics and tax incentive of Malaysian manufacturing companies listed on KLSE. About five hundred forty three (543) annual reports were analysed in this study for both descriptive and regression analysis. The annual reports were extracted from Bursa Malaysia, which focusing from year 2017 until 2019. This study found that firm size, profitability and leverage have significant impact on tax incentive (proxied by the effective taxnrate). Firm size measured by total share outstanding has been found to have positive significant relationship with tax incentive. While, firm profitability measured by ROA has been found to have negative significant relationship with tax incentive; and in contrast ROE has positive significant impact on tax incentive. Other factors such as Big4 audit firm and firm size (measured by total asset and revenue) have no significant relationship at all. Results also revealed that the average effective tax rate of firm-year observations is more than standard tax rate of Malaysia at 24% which implies that the level of tax incentive application and utilization is still at low level where it could not minimize companies’ tax liability suggesting low tax planning activities.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Mufidah Syafiqah, Mihat
author_facet	Mufidah Syafiqah, Mihat
author_sort	Mufidah Syafiqah, Mihat
title	The relationship between companies characteristics and tax Incentive: Listed manufacturing companies in Malaysia
title_short	The relationship between companies characteristics and tax Incentive: Listed manufacturing companies in Malaysia
title_full	The relationship between companies characteristics and tax Incentive: Listed manufacturing companies in Malaysia
title_fullStr	The relationship between companies characteristics and tax Incentive: Listed manufacturing companies in Malaysia
title_full_unstemmed	The relationship between companies characteristics and tax Incentive: Listed manufacturing companies in Malaysia
title_sort	relationship between companies characteristics and tax incentive: listed manufacturing companies in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2022
url	https://etd.uum.edu.my/10697/1/s828410_01.pdf https://etd.uum.edu.my/10697/2/s828410_02.pdf
_version_	1783729405859725312

The relationship between companies characteristics and tax Incentive: Listed manufacturing companies in Malaysia

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