A conceptual review of effective tax rate | [Science International • 2020]

Author(s):

1. Rosmaria Jaffar: Faculty of Business and Management, Universiti Sultan Zainal Abidin, 21030, Kuala Nerus, Terengganu, Malaysia

2. Chek Derashid: Tunku Putri Intan Safinaz, School of Accounting, Universiti Utara Malaysia, 60100, Sintok, Kedah, Malaysia

3. Roshaiza Taha: Faculty of Business, Economics, and Social Development, Universiti Malaysia Terengganu, 21030, Kuala Nerus, Terengganu, Malaysia

Abstract:

This study reviews the literature of effective tax rate model as this effective tax rate is commonly used as the measurement for corporate tax planning. Although the study in this area is massive, usually focused on large companies, there is no mutual understanding among the researchers on the major determinants of the corporate effective tax rate. A long list of factors to include firm size, profitability, leverage, capital intensity, inventory intensity is seen as among the most influential factors that determine the effective tax rate. From the analysis of the literature review conducted, we believed that there is a need to propose a new framework that can be used to standardize the determinants of effective tax rate and further assist the company in planning and minimize their tax burden without distorting the government revenue collection. In addition to that, this paper adds to the new insight by extending the discussion to include ethnicity which considers unique in the Malaysian setting.

Page(s): 441-445

DOI: DOI not available

Published: Journal: Science International, Volume: 32, Issue: 4, Year: 2020

Keywords:

profitability , Leverage , Firm size , Effective tax rate , Capital intensity , Inventory intensity

References:

References are not available for this document.

Citations

Citations are not available for this document.

Citations

Downloads

Views