DETERMINATS OF REINVESTMENT ALLOWANCE (RA) TAX INCENTIVE UTILIZATION IN EMBRACING INDUSTRY 4.0
Journal Title: Polish Journal of Management Studies - Year 2018, Vol 18, Issue 2
Abstract
In the era of automation, Malaysia is compelled to embrace Industry 4.0 in order to remain competitive. Thus, the nation needs to be better prepared to confront the challenges ahead. From the perspective of taxation, the government has crafted many tax incentives such as Reinvestment Allowance (RA) to stimulate business expansion, automation, modernization, and diversification. The aim of this paper is to determine the factors affecting the utilization of RA among incentivised firms in Malaysia. Confidential tax return data was analysed using binomial logistic regression and the results confirmed that there are connections between firm profitability, investment, sector, and effective tax rate with the utilization of RA. Thus, by focusing on the potential determinants in RA utilization, it will benefit both policy makers and industry players to enhance effective application of RA that was designed to support Industry 4.0.<br/><br/>
Authors and Affiliations
Nadiah Abd Hamid, Fairus Halizam A. Hamzah, Rohaya Md Noor, Norazah Md Azali
Keywords
Related Articles
- EP ID EP428280
- DOI 10.17512/pjms.2018.18.2.08
- Views 59
- Downloads 0
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