Company Tax Rate Research Articles

Return Saham Sebagai Respon Dari Perubahan Tarif PPh Badan Dengan Liabilitas Pajak Tangguhan Sebagai Variabel Intervening

This research aims to determine and analyze the affect of changes in company tax rate on Stock Return using deferred tax expense as intervening variable at Property, Real Estate and Construction Companies listed in Indonesia Stock Exchange period 2018-2021. The population in this research amounted to 64 companies.The sampling method used purposive sampling method and obtained 13 sample. The data analysis technique used is quantitative analysis using the classic assumption test and path analysis with the IBM SPSS 25. The result of analysis shows that simultaneously changes in company tax rate no significant effect on deferred tax expense. Partially, changes in company tax rate no significant effect on deferred tax expense. While changes in company tax rate and using deferred tax expense rate no significant effect on stock return. Partially changes in company tax rate and using deferred tax expense rate no significant effect on stock return. The results of the track analysis show that the existence of deferred tax expense rate variables is able to intervening influence of deferred tax expense to stock return.

The Influence of Tax Authority on Corporate Tax Avoidance: Mechanism and Motivation

In the past, literature about the government's influence on corporate tax burden have studied corporate tax avoidance from the perspective of tax collection and management, while few have examined corporate tax avoidance from the perspective of policy formulation and policymakers. This paper fills this gap. Government is an empty concept, and its policy characteristics are actually the reflection of real core government officials' decision-making. By referring to Bertrand and Schoar (2003), Dyreng, Hanlon, and Maydew (2008), this paper finds that individual factors of financial leadership have a significant impact on the level of income tax rates of companies in their jurisdictions. Furthermore, the formulation of the financial budget is the influence path, including the proportion of local general budget revenue in local GDP, the proportion of local general budget expenditure in local GDP, the proportion of local tax revenue in local GDP, and the proportion of local enterprise income tax in all tax revenue. Finally, this paper finds that the leaders' motivation for their future careers is the influence of corporate tax avoidance. The characteristics that impact corporate income tax are the tenure of the director of finance, age, and whether the next post is promoted to the vice governor or vice mayor.

System of taxation of hotel enterprises in Ukraine

The taxation system of hotel enterprises in Ukraine according to their organizational and legal status is analyzed. The influence of the tax system on the organizational and functional characteristics of hotels – staff, specialization, indicators of financial and economic activity, qualification of accountants, financial statements, etc. is revealed. The advantages and disadvantages of the general and simplified tax system in Ukraine are described. Most hotel businesses use a simplified tax system. The connection between the state tax policy in the hotel industry and investment activity is revealed. Taxation is a key point in which the government supports investment-attracting businesses. Support is provided in the form of reduced income tax rates, tax benefits. The state, by not receiving budget revenues, encourages hotel companies to reduce their income tax expenditures to invest more in business and increase profits. It is important, together with the reduction in the tax rate, to use means of influence for the purpose of tax relief. In Ukraine, the tax system does not promote investment in the hotel industry. The mechanism of application of tax privileges in countries known to the tourist specialization is characterized. It has been revealed that the hotel taxation system is one of the key factors of their microeconomic development, financial capacity building, and at the same time an instrument of investment in the hospitality sector of Ukraine. Reducing the profit tax rates of hotel companies from 21% to 18% contributes to improving their financial status, increasing production capacity, and improving service levels. However, such a tool cannot be a guarantee of reinvestment in an enterprise. Targeted tax benefits are considered more effective, for example: significantly reducing or exempting companies by category, type, capacity, location of income tax for a specified period. At the same time, with the reduction of the tax rate, it is necessary to use the means of influence to comply with the subjects of the hotel business with the targeted application of tax benefits. Key words: hotel enterprises, tax system, tax breaks, profit of enterprises, investments, investment climate.

The Relationship Between Effective Tax Rate and Firm Size

The current research studies firm size and other determinants of effective tax rates for UK companies operating in the wholesale and retail trade sector. A panel of 784 companies from the BvD Company Independence Indicator (BvD's FAME database) is studied over the six-year period 2008-2013. The research approach is unique in terms of the comprehensive data it is using as it is large panel data and it involves finance and accounting analytics. The analysis shows that size and profitability were significant factors affecting the average effective tax rates of companies in the wholesale and retail trade sector.

Analysis of Factors Affecting Effective Tax Rates of Companies Listed on the Indonesia Stock Exchange 2009-2018

Stock Exchange This study aims to determine whether company size, profitability, leverage, the proportion of independent commissioners and government ownership have an influence on the company's effective tax rates both jointly and partially. This was tested on companies listed on the Indonesia Stock Exchange by means of statistical testing through a panel data regression model that was processed using the STATA 12.0 application. Secondary data used in this research were collected using content analysis techniques. The research sample was determined by a purposive sampling technique on companies in the sectoral index consisting of 10 sectors listed on the Indonesia Stock Exchange with the study period 2009-2018. The independent variables used in this study are company size, profitability, leverage, the proportion of independent commissioners and government ownership, while the dependent variable is the company's effective tax rate. The results showed that the size of the company, the level of profitability of return on assets and corporate governance that are proxied by the proportion of independent directors have a significant effect on effective tax rates, although with different correlations. Where firm size is negatively correlated, while the level of profitability and corporate governance has a positive effect on effective tax rates. Meanwhile, leverage and government ownership variables tend not to have a significant effect on effective tax rates.

KEUNTUNGAN DAN KERUGIAN PENGGUNAAN METODE GROSS-UP DALAM PERHITUNGAN PPh PASAL 21 PEGAWAI TETAP MELALUI ANALISA PERBANDINGAN

This research aims to show a comparative between Gross-Up method with others method to calculate article 21 income tax in order to tax planning action. Moreover, this journal gives a tutorial, how to calculate Article 21 Income Tax, use Gross-Up method in Ms Excel and e-SPT aplication. This research uses descriptive and tutorial method to discuss research questions. The result shows that the implementation of Gross-Up method in calculating article 21 income tax, only gives optimal result if implemented to employees who has salary below company tax rate. Contrary, the result will be minumum if used to employees who have higher tax rate. However, income tax benefit that give to employees can increase a motivation among them.In this study, it is argued that the implementation of Gross-Up method can be optimal in situational cases.

Influence of Ownership Structure on the Determinants of Effective Tax Rates of Spanish Companies

This paper examines the effect of state ownership on the effective tax rates of Spanish companies. Using information regarding 3169 companies during the period of 2008–2014, we show that there are significant differences between the tax burdens of non-state-owned enterprises (NSOEs) and state-owned enterprises (SOEs), with the effective tax rates of private ownership companies being higher than those of state-owned firms. Company features, such as size, leverage, research and development investment, profitability, firm age, foreign operations, and auditing determine the tax burden of private ownership firms. That of state-owned companies, however, is affected only by leverage and capital intensity. For both SOEs and NSOEs, the tax burden is lower when they are taxed under the Spanish special taxation regime for small- and medium-sized enterprises. In short, company characteristics are more important in private ownership firms, in which almost all the variables considered have certain repercussions. This result may be because private ownership companies devote more resources to tax avoidance, and their fiscal strategy may determine their economic and financial structure. However, SOEs present significantly lower effective tax rates than NSOEs, probably because of the tax incentives that the law provides for them to support their sustainability.

The Influence of Iron Ore Tax on China's Metallurgical Mines

Mining industry is a very important industry in China. Its tax and fee policy is related to the whole industry. This paper summarizes the main types of taxes and fees involved in iron ore in China, Australia, Russia, Cameroon, Brazil, India and South Africa, and also compare the comprehensive tax and fee burden rates of iron ore companies in China with those of four major international mining companies, Rio Tinto, BHP Billiton, Valley and FMG. It concludes that the comprehensive tax and fee burden rates of iron ore companies in China are higher about 6% than those of the four major international mining companies. The main reasons for the increase are unreasonable industrial orientation of mining industry, high resource tax and value-added tax rates, few deductible items of value-added tax, and unreasonable collection of local special taxes and fees. Finally the author puts forward five suggestions on how to reduce the tax burden of iron ore companies. First, the government can improve the tax system and form a scientific, reasonable tax system. The second is adjusting the mining industry from the second industry to the primary industry. The third is to formulate a national strategy to ensure the safety of iron ore supply. The fourth is to uniformly determine the collection standard of resource tax rate by the country, cancel the unreasonable tax and fee collected by local government. The fifth is to increase fuel tax credits for mining companies.

Comment: Do firms that pay less company tax create more jobs? Volume 59, September 2018, Pages 25–28

The paper presents a critique of the recent paper published in this Journal by Dr Andrew Leigh (Do firms that pay less company tax create more jobs? Volume 59, September 2018, Pages 25–28). Besides the model misspecification, omitted results and data availability bias of the regression used to inform the overall results, there are no controls for confounding factors that influence the effective marginal tax rate. These omissions are detrimental to the validity of the paper. This paper seeks to illuminate the sources of those errors and argues that the paper is sufficiently flawed that no weight should be given to its analysis when considering the potential consequences of a company tax rate cut.

Australia's Company Tax: Options for Fiscally Sustainable Reform, Updated Post Trump

The Australian Government proposes to reduce the company tax rate from 30 to 25 per cent. However, there are widespread concerns that the fiscal cost is not affordable. This paper considers alternative reforms of corporate taxation that could fund a corporate tax rate cut. We address key non-neutralities in the corporate tax system and consider key international developments, including the enactment of the Trump tax plan in the United States, which lowers the US corporate tax rate to 21%. We examine the case for abolition of dividend imputation in favour of a lower headline company tax rate and consider the spectrum of reform options for the corporate tax base, which ranges from the cash flow tax and allowance for corporate equity or capital to a comprehensive business income tax which would eliminate interest deductibility. These measures (which could co-exist in a hybrid system) might be accompanied by discounts on dividend and interest income at the personal level, in replacement of dividend imputation.

Australia's High Company Tax Rate and Dividend Imputation: A Poor Recipe for a Small Open Economy?

By international standards, Australia’s business tax system combines a high company tax rate of 30 per cent with low taxation of domestic investors through dividend imputation. This prioritizing of domestic investors over foreign investors is at odds with the evidence in this paper that the marginal investor is foreign. Better aligning Australia’s business tax system with international practice would encourage business investment, reduce tax avoidance and reduce the riskiness of national income. This paper assesses the evidence on the size of these three effects and models the consumer benefits of better aligning the Australian business tax system with international practice.

The FASB Simplifies the Accounting for Share‐Based Payments

In this article, the authors explain the FASB's recently issued simplifications to accounting for share‐based payments. The areas of simplification include accounting for income taxes and award forfeitures and providing flexibility in statutory tax rates to meet withholding requirements. The authors provide examples of the revised accounting entries and examine the impact of the change in accounting for income taxes on the seven largest U.S. companies. With an effective date for years beginning after December 15, 2016, corporate accountants and financial executives need to understand the financial reporting implications of the changes that will add volatility to reported income tax expense, earnings, and effective tax rates of companies that rely heavily on share‐based payments. © 2017 Wiley Periodicals, Inc.

Effect Corporate Governance and Taxation Reform of Profit and and Tax Management on Listed Companies in Indonesian Stock Market

This research aims to investigate corporate governance and tax reform with regards to ABTXD. ABTXD is a substitute for detection earning management and tax management. The research uses 117 samples from listed company in BEI, except agriculture, mining, financial, and construction. Measurement of corporate governance performance is based on Asean CG Scorecards. The research notions are: (1) most company practiced tax management together with earning management throughout declining company income tax rate in Indonesia, (2) tax management performed by company depends on tax facility,(3) earning management practiced by company depends on financial condition of company, either they are in profit or loss,(4) proactive approach executed by both board of commissioner and of director might be able to lessen company’s tax expense.

Efficiency of the Tax System: A Marginal Excess Burden Analysis

This paper analyses the efficiency of the Australian tax system using CGETAX, a large-scale, long-run CGE model designed for tax policy analysis. This follows an analysis with CGETAX of an Australian Government proposal to reduce the corporate tax rate from 30 to 25 per cent in Murphy (2016a) and Murphy(2016b) and an Australian Treasury Working Paper on the efficiency of certain taxes (Cao et al., 2015). This paper begins by uses a highly stylised version of CGETAX to provide a theoretical analysis of the efficiency of major taxes, applicable to advanced, open economies in general. The Stylised model, like CGETAX, allows for imperfect competition and models the disincentive effects of taxes on labour supply, the capital-to-labour ratio, and the choice between present and future consumption. Of the major taxes, company income tax is found to be least efficient, with a marginal excess burden of 139 cents per additional dollar of tax revenue. For open economies the literature finds that company tax is among the most inefficient of taxes because it suppresses labour supply and the capital to labour ratio and leads to profit shifting to lower taxed jurisdictions. For Australia, company tax is even more inefficient because of its above-normal company tax rate and the erosion of the final revenue yield through the system of franking credits.

Dividend Imputation or Low Company Tax?

Recent OECD data offer limited support for the proposition that our company tax rate could be cut substantially with little or no loss of tax revenue. Treasury‐type analysis suggests otherwise: our headline rate could be cut to 20 per cent if abolishing dividend imputation were used to finance a cut in the headline rate. But this type of exercise relies on strong assumptions, and imputation mitigates other idiosyncrasies of our tax system. Accordingly, abolition of imputation should await a cut in our top marginal personal rate along with a transition to back‐end taxation of most superannuation accounts.

Dividend imputation or low company tax

Recent OECD data offer limited support for the proposition that our company tax rate could be cut substantially with little or no loss of tax revenue. Treasury‐type analysis suggests otherwise: our headline rate could be cut to 20 per cent if abolishing dividend imputation were used to finance a cut in the headline rate. But this type of exercise relies on strong assumptions, and imputation mitigates other idiosyncrasies of our tax system. Accordingly, abolition of imputation should await a cut in our top marginal personal rate along with a transition to back‐end taxation of most superannuation accounts.

Debt shifting in Europe

This article aims to analyze the link between subsidiary capital structure and taxation in Europe. First we have introduced a trade-off model, which looks at a MNC’s financial strategy and in particular debt shifting from low-tax to high-tax jurisdictions. By letting the MNC choose both leverage and the debt shifting percentage, we depart from the relevant literature which has mainly focused on the latter. Using the AMADEUS dataset we show that: (i) in line with the relevant literature, subsidiary leverage increases with its tax rate; (ii) contrary to previous work, the parent company tax rate does not have a negative effect on subsidiary leverage. More specifically, its effect is estimated to be nil when statutory tax rates are used. When however, effective marginal tax rates (EMTRs), accounting for cross-border effects, are used, the impact of parent company taxation on subsidiary leverage is positive.

Evolution of the Australian fiscal landscape and its impact on oil and gas investments in Australia

The oil and gas industry is among the most regulated and highly taxed sectors of the Australian economy. In recent times, the industry has been confronted with ongoing tax reforms that significantly impact the after-tax economics of projects. Examples include the introduction of the carbon pricing mechanism, the extension of the Petroleum Resource Rent Tax (PRRT) to the onshore oil and gas sector, the decision in the Esso case impacting on PRRT taxpayers, amendments to R&D tax incentives and modifications to the taxation system affecting mobile employees. Although the Business Tax Working Group recently did not make any recommendations to broaden the tax base to fund a reduction in the company tax rate, the desire to undertake further reforms that may impact the sector remains. The year ahead will see implementation of further transfer pricing reforms, ongoing consultation and review regarding the definition of exploration expenditure, and increasing focus on corporate international tax reform in line with global trends. Any reform has the potential to have a material impact on the capital- and exploration-intensive oil and gas industry, which also relies heavily on capital funding from multinational investors. This extended abstract analyses the recent reforms and their impact on the oil and gas sector, provides an outlook of other relevant areas of potential fiscal change, and assesses what this might mean for the Australian oil and gas industry.

Recent Tax Reform Measures

Several tax reform measures have been proposed in Australia, including the minerals resource rent tax, reduction of the company tax rate and tax concessions for small businesses. Proposed changes will also affect controlled foreign companies, the investment manager regime and managed investment trusts.

Profit Shifting by Debt Financing in Europe

This article aims at analyzing the link between subsidiaries' cap- ital structure and taxation in Europe. First we introduce a trade- off model, which studies a MNCs' financial strategy and shows how debt policy allows multinational groups to shift profits from low-tax to high-tax jurisdictions. By letting the MNC choose both leverage and the percentage of profit shifting, we depart from the relevant literature which has mainly focused on the latter. Using the AMADEUS dataset we show that: i) subsidiaries' leverage increases with the statutory tax rate, levied in the country where it operates; ii) this positive effect is lower, the higher the parent company tax rate is. Furthermore, an increase in the parent company's tax rate is estimated to raise its subsidiaries' leverage.