05. Conclusion - Syikin - CONCLUSION Malaysia used many tax...

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CONCLUSION Malaysia used many tax incentives to stimulate efficient investment, rapid growth, and structural transformation. Many tax incentives simply remove part or of the burden of the tax from business transactions. There are many types of tax incentives in Malaysia and the most popular among business are pioneer status incentive, investment tax allowance (ITA), and also reinvestment allowance. Based on our reading, not many agriculture companies have take advantage on the tax incentive provided. There is not much study from previous literature on tax incentive in agriculture sector. This study found that there is small volume of Malaysian agriculture company has record on tax incentive. In this study, we analyze the impact of tax incentives used by agriculture companies in Malaysia towards the company performance. Our calculations are based on the company’s return on assets (ROA), earning per share (EPS), and also return on equity (ROE) which determines the company performance over certain period. Tax incentive was identified by using the percentage of property, plant and equipment (PPE) over total asset (PPE/TA), debt over total asset (debt/ TA), and also tax expense over total revenue (TR). All these measures were predicted to have influence over company performance which measured based on ROA, ROE and EPS. The results show that tax incentives in Malaysian agriculture companies have a significant impact on company performance. This study found out that PPE/TA, debt/ TA and tax expense/ TR has positive relationship with company’s ROA, ROE, and EPS.
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