scholarly journals Indonesian And Australian Tax Policy Implementation In Food And Agriculture Industry

2014 ◽  
Vol 3 (1) ◽  
pp. 75-84
Author(s):  
Martin Surya Mulyadi ◽  
Maya Safira Dewi ◽  
Yunita Anwar ◽  
Hanggoro Pamungkas
Keyword(s):  
Foreign Direct Investment ◽  
Significant Influence ◽  
Tax Policy ◽  
Income Tax ◽  
Direct Investment ◽  
Corporate Performance ◽  
Tax Incentives ◽  
Indonesian Government ◽  
Food And Agriculture ◽  
Agriculture Industry

Tax policy is one of the most important policy in consideration of investment development in certain industry. Research by Newlon (1987), Swenson (1994) and Hines (1996) concluded that tax rate is one of the most important thing considered by investors in a foreign direct investment. One of tax policy could be used to attract foreign direct investment is income tax incentives. The attractiveness of income tax incentives to a foreign direct investment is as much as the attractiveness to a domestic investment (Anwar and Mulyadi, 2012). In this paper, we have conducted a study of income tax incentives in food and agriculture industry; where we conduct a thorough study of income tax incentives and corporate performance in Indonesian and Australian food and agriculture industry. Our research show that there is a significant influence of income tax incentives to corporate performance. Based on our study, we conclude that the significant influence of income tax incentives to Indonesian corporate performance somewhat in a higher degree than the Australian peers. We have also concluded that Indonesian government provide a relatively more interesting income tax incentives compare to Australian government. However, an average method of net income –a method applied in Australia– could be considered by Indonesian government to avoid a market price fluctuation in this industry.

scholarly journals Modelling the synergy between fiscal incentives and foreign direct investment in Ghana

2020 ◽  
Vol 22 (2) ◽  
pp. 325-334
Author(s):  
Adamu Braimah Abille ◽  
Desmond Mbe-Nyire Mpuure ◽  
Ibrahim Yahaya Wuni ◽  
Peter Dadzie
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Corporate Tax ◽  
Test Technique ◽  
Fdi Inflows ◽  
Content Type ◽  
Tax Rate ◽  
Fiscal Incentives ◽  
Short Run

PurposeThe purpose of the paper was to investigate the role of fiscal incentives in driving foreign direct investment (FDI) inflows into the Ghanaian economy based on data from 1975 to 2017 with the Eclectic paradigm as the theoretical basis. FDI inflows was the dependent variable whiles trade openness, corporate tax rate, exchange rate and market size were the independent variables with corporate tax rate as the main explanatory variable of interest.Design/methodology/approachThe autoregressive distributed lag (ARDL) bounds test technique was employed to investigate Cointegration in the model. The results showed the presence of cointegration among the variables.FindingsThe results revealed that corporate tax rates have a significant negative impact on FDI inflows into the Ghanaian economy in the long run and significant positive impact on FDI inflows in the short run. In the context of Ghana, the positive short-run relationship observed is attributed to the lag effect of tax policy on FDI inflows.Research limitations/implicationsOne obvious limitation of the research is that, it does not identify the specific foreign businesses that are more deserving of a low corporate rate and to what extent can that boost FDI inflows in Ghana. Another limitation is that the data analyzed in the paper is exclusively for Ghana and the findings may not be generalized for other countries.Practical implicationsBased on the research findings, it is recommended that the Ghana Revenue Service (GRA) restructures the corporate tax regime in the country to deal with the policy lapses. It is also recommended that low corporate rates should be maintained especially in respect of foreign companies that are into the production of goods and services for which indigenous companies in Ghana have a comparative disadvantage in order to drive FDI into the Ghanaian economy.Originality/valueThis paper is unique for providing up to date and dynamic insights into the tax incentive and FDI nexus in the Ghanaian context.

scholarly journals Impact of Tax Incentives on Foreign Direct Investment: Evidence from Africa

2021 ◽  
Vol 13 (15) ◽  
pp. 8661
Author(s):  
Seth Nana Kwame Appiah-Kubi ◽  
Karel Malec ◽  
Joseph Phiri ◽  
Mansoor Maitah ◽  
Zdeňka Gebeltová ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
Random Effect ◽  
Tax Incentives ◽  
Business Environment ◽  
Sustainable Growth ◽  
Poverty Eradication ◽  
African Countries ◽  
Tax Holidays

African countries have faced competition and several challenges to attract foreign direct investment given the role that FDIs play in the development process. Several efforts made have been futile because of numerous factors that play against the business environment for foreign investments. Our paper analyses the influence of tax incentives on foreign direct investment in African economies based on data from 2000–2018. We utilized panel data on forty (40) African countries and an econometric model of four proxies of tax incentives, after controlling other variables, with robust Random Effect as our discussion estimator. Our results revealed that FDI responds to lower corporate income tax (CTR). Furthermore, foreign direct investment predominates in African economies with longer tax holidays and withholding tax. However, tax concession is insignificant to the inflows of FDIs in Africa. Summarizing, our results recommend that without proper restructuring of the tax incentives to deal with policy lapses by the governments of Africa, achieving the four main goals, i.e., poverty eradication, sustainable growth and development, African integration in the competitive global economy, and women empowerment, will be hindered.

Determinants of Foreign Direct Investment in Australia

2013 ◽  
Vol 03 (08) ◽  
pp. 20-30
Author(s):  
Sauwaluck Koojaroenprasit
Keyword(s):  
Foreign Direct Investment ◽  
Research And Development ◽  
Exchange Rates ◽  
Significant Relationship ◽  
Direct Investment ◽  
Market Size ◽  
Corporate Tax ◽  
Fdi Inflows ◽  
Tax Rate ◽  
Significant Relationships

Determinants of Foreign Direct Investment (FDI) in Australia were analyzed from 1986 to 2011, based on data availability. The determinants considered FDI inflows according to aggregate FDI inflows and FDI inflows by the top three source countries (USA, UK and Japan). Empirical studies identified four results. (1) For the determinants of FDI in Australia, a larger market size will attract more FDI, whereas more openness and a higher corporate tax rate will discourage FDI inflows into Australia. Lower customs duty and lower interest and depreciation of exchange rates will attract more FDI. The relationship between FDI inflows into Australia and wages was not significant. (2) For the determinants of US inward FDI in Australia, a larger market size will attract more US inward FDI in Australia, whereas more openness and an appreciation of the exchange rate will discourage US inward FDI in Australia. A negative and significant relationship was obtained between customs duty and US inward FDI in Australia. There were positive and significant relationships between US inward FDI in Australia and both the interest and corporate tax rates. (3) For the determinants of UK inward FDI in Australia, greater research and development in Australia will attract more UK inward FDI in Australia, whereas a higher corporate tax rate will discourage UK inward FDI in Australia. The positive relationship between market size and UK inward FDI in Australia was not significant. Openness, customs duty and inflation did not have significant relationships with UK inward FDI in Australia. (4) For the determinants of Japanese inward FDI in Australia, higher wages and greater research and development will attract more Japanese inward FDI in Australia, whereas higher customs duty and a higher corporate tax rate will discourage Japanese inward FDI in Australia. There was no significant relationship between Japanese inward FDI in Australia and either the interest or exchange rates.

Company Income Taxes and Foreign Direct Investment in Nigeria

2018 ◽  
Author(s):  
Onome Edo ◽  
Omoye Alade
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Cost Benefit Analysis ◽  
Empirical Studies ◽  
Cost Benefit ◽  
Tax Incentives ◽  
Corporate Taxes ◽  
Secondary Sources ◽  
Current Economic Situation ◽  
Research Findings

This paper discusses corporate taxes and Foreign Direct Investment (FDI) in Nigeria. It is a review of literature that attempts to explore and give a reality on the response of FDI to corporate taxes. This paper shows in its introductory phase a prior discussion of the terms corporate tax and FDI and also elements of both terms and classifications. It follows with issues such as the effects of corporate taxes on FDI. This paper discusses the rhetoric whether reduced corporate taxes and other tax incentives has an effect on the inflow of FDI in Nigeria. To answer this question, the paper utilised information gathered from secondary sources including books, newspapers publications, working papers and research findings from studies. This paper shows that from surveyed empirical studies corporate taxes may have an important role in attracting FDI and have a rising effect on the development of the country, and as such recommends that tax incentives should be employed as a means  to attracting FDI, a cost benefit analysis should be employed on the types of corporate taxes  to determine the benefit from the perceived FDI inflow, in addition a review of the current tax policies should be carried out as they seem not to respond to the current economic situation.

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