The document discusses tax policy and incentives for attracting foreign direct investment (FDI) to developing countries, using Vietnam as a case study. It begins by classifying different types of tax incentives and evaluating their advantages and disadvantages. It then analyzes data on tax incentives adopted in 107 developing countries, finding that tax holidays and preferential tax rates are most common. While incentives can positively impact FDI inflows, they often result in significant lost tax revenue. The document concludes by detailing Vietnam's corporate income tax rates and incentives, which are generally competitive but may not be optimally efficient.
Effect of Voluntary Disclosure on Corporate Performance of Quoted Manufacturi...ijtsrd
The objective of the study is to examine the effect of voluntary disclosure on corporate performance of quoted manufacturing companies in Nigeria. The study specifically examined the effect of voluntary disclosure on ROA, ROE, and NPM. The population of the study was drawn from manufacturing firms quoted on the floor of the Nigerian Stock Exchange. financial year. The study was based on secondary sources of data, collected from annual financial reports. The study used content analysis to analyse the voluntary disclosure items. The study finds that voluntary disclosure has a significant negative effect on profitability return on assets, return on equity and net profit margin . The study therefore recommends, among others, manufacturing firms to enhance voluntary disclosure based on a cost benefit analysis of such, and also, help “bridge the gap†between financial numbers and the true economics underlying the company’s transaction. Voluntary disclosure is also recommended as a medium to curtail the shenanigans of earnings management. Ikemefuna, Victor C. | Onuora, J. K. "Effect of Voluntary Disclosure on Corporate Performance of Quoted Manufacturing Companies in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42600.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42600/effect-of-voluntary-disclosure-on-corporate-performance-of-quoted-manufacturing-companies-in-nigeria/ikemefuna-victor-c
This study brings to an academia table the discussion on whether investment incentives are a
motivator or a gift and also explores the moderating effects of Investors‟ Perceptions on Stock market
Performance. By use of key word characters the search initially identified 93 published and unpublished research
papers and after a tentative scrutiny, 66 papers were selected in a random sampling manner in order to give the
birth to this discussion paper. Exploratory research design was used. The key objective of this article was to
investigate on the question as to whether incentives are a gift or a motivator. The study findings reveal than
investor perceptions affects stock market performance more than incentives do. The paper concludes that the
availability, adequacy, and timeliness of relevant information about marketable securities are important for both
pricing efficiency and market confidence. Investment incentives work well in an ideal world to promote
investment while investors‟ perceptions are relevant in the real world. Hence, stock market incentives were
concluded as being a gift and not a motivator for investors to make investment decisions at the stock market.
Impact of Information Technology Investment to Financial Performance on Banki...Hendra Gunawan
This study examines the impact of technology on the performance of financial investment in banking companies listed in Indonesia Stock Exchange to prove its influence on the development of the banking company's financial performance. The data used in this research is secondary data uses financial statements that have been audited. Data analysis technique used is simple regression analysis. Results showed that between investments in information technology affect the company's financial performance. The results of this study illustrate that the company's financial performance would be if the investment in information technology in the company are used effectively and efficiently. This research is important for companies and organizations, in order to better the use or utilization of information technology in the enterprise. The company is only limited to the banking companies listed in Indonesia Stock Exchange, then further research is recommended to add criteria and indicator others that have not been addressed in this study, in addition to subsequent authors can also extend the sample population to another company with a different field such as manufacturing companies.
Intellectual capital: A modern model to measure the value creation in a businessAI Publications
Using a sample of 92 patients, this study looked into the impact of intellectual capital on the efficiency of private hospitals. The researchers used a quantitative approach to assess the effect of Intellectual capital (Human capital, Structural capital, and Relational capital) on long-term competitive advantage in private hospitals in Iraq's Kurdistan region. The research sample was selected using a random sampling method and conducted in various locations across Iraq's Kurdistan province. A total of 110 questionnaires were distributed, but only 92 people correctly completed them. The findings revealed that the most effective relationship with firm success was between human capital as an element of Intellectual capital, while the least effective relationship was between ownership as an element of Intellectual capital. Furthermore, our findings indicate that finance managers should use debts as a last resort in terms of intellectual capital. Finally, our research can be improved by using more controlled variables, a greater sample size, and data from a longer time span in the regression models. Other methods and steps can be used as well.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Mandatory and Voluntary Disclosure of Annual Report on Investor ReactionHendra Gunawan
This study aims to obtain empirical evidence about the influence of mandatory disclosure, voluntary disclosure on investor reaction to either partially or simultaneously. The study was conduct on 38 manufactured companies listed on Indonesian Stock Exchange. There are fve variables that mandatory disclosure, voluntary disclosure as the independent variable, cash flow operating activities (AKOp), cash flows investing activities (AKIn), cash flows fnancing activities (AKDa) as the control variable and the investor reaction was measured by using trading volume activity as the dependent variable. The result indicates that mandatory disclosure partially affect the investor reaction mandatory disclosure, voluntary disclosure simultaneously affect the investor reaction. Limitations are mandatory disclosure, voluntary disclosure, cash flow operating activities (AKOp), cash flow investing activities (AKIn), cash flow fnancing activities (AKDa) are less able to measure the volume of stock trading prediction of the future.
Factors Influencing the Level of Compliance with International Financial Re...Premier Publishers
Compliance with International Financial Reporting Standards (IFRS) by Small and Medium-Scale enterprises (SMEs) has become a topical issue in accounting research, and it has become necessary in order to enhance the ability of SMEs to live up to international best business practices. SMEs are pivotal to the growth and development of any nation's economy. Many countries are opening their doors to foreign investments due to globalization and businesses are expanding beyond their national borders. Therefore, there is a need for the SME sector in Nigeria to be prepared and take advantage of this phenomenon for their growth by ensuring that their financial reports comply with the disclosure requirements of IFRS. This study assessed the factors that influence the levels of compliance with IFRS by SMEs in Ondo State, Nigeria. A cross sectional survey of one hundred SMEs in Akure was conducted through structured questionnaire. The data was analyzed using Single-Factor Descriptive Analysis, Weighted Mean Scoring, Principal Component Analysis and Regression Analysis. The study found there was low level of compliance by the SMEs in the study area and major factors influencing compliance are proper accounting records submission of accounting statements to regulatory bodies and knowledge of IFRS with mean ratings of 3.29, 3.27, 3.26 and 3.24 respectively. It concluded that there is need for the SMEs in the study area to comply with the disclosure requirements of IFRS in order to improve their capitalization and profitability. It is recommended that Financial Reporting Act in Nigeria is reviewed to make compliance of SMEs with IFRS mandatory and that Financial Reporting Council should ensure proper capacity development to enable SMEs compliance.
Effect of Abnormal Cash Flow Quality on Big 4 and Non Big 4 Audited Firms in ...YogeshIJTSRD
This study compare financial reporting quality of Big 4 audited and non Big 4 audited firms in Nigeria. Specifically, compares the abnormal operating cash flow quality, and abnormal production expenditure quality, and unexpected core earnings of Big 4 and non Big 4 audited firms. The study adopts the ex post facto research design as the goal is not manipulate any variable but rather establish comparative difference. The population comprised of quoted manufacturing firms and the sample restricted to a purposive sample of 62 firms from 6 sectors listed on the Nigerian Stock Exchange NSE . The study utilized secondary data retrieved from annual financial statements of the sampled firms. The data were analyzed using several techniques such as multiple regression, and correlation. The results showed a statistically significant difference in abnormal operating cash flow quality of Big 4 and non Big 4 audited firms a statistically significant difference in abnormal production expenditure quality of Big 4 and non Big 4 audited firms. Based on this, the study recommends that shareholders during Annual General Meeting AGM may also seek the adoption of joint auditors to strengthen audit quality and cushion against shocks from manipulative practices of managers or the lack of independence from continued engagement of particular audit firms. Anazonwu, Helen O. | Egbunike, Patrick A. "Effect of Abnormal Cash Flow Quality on Big 4 and Non-Big 4 Audited Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd43847.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/43847/effect-of-abnormal-cash-flow-quality-on-big-4-and-nonbig-4-audited-firms-in-nigeria/anazonwu-helen-o
Exploring the Role of Technology and Internet Financial Reports on Financial ...Premier Publishers
Internet financial reports (IFR) and the associated technology are considered among the most technical issues in Libya financial organizations that encouraged the current study, to better understand the future of financial report users. This has gained widespread acknowledgement in the current literature in recent years, where it became a significant phenomenon in practice. Several kinds of studies on IFRs in several areas have been done in developed countries, while IFR and some factors such as technology (Internet) are still not studied enough in developing countries, especially in public organizations in Libya. This study provides exploratory insight into identifying the aforementioned factors, which may affect the users of financial reports.
Effect of Voluntary Disclosure on Corporate Performance of Quoted Manufacturi...ijtsrd
The objective of the study is to examine the effect of voluntary disclosure on corporate performance of quoted manufacturing companies in Nigeria. The study specifically examined the effect of voluntary disclosure on ROA, ROE, and NPM. The population of the study was drawn from manufacturing firms quoted on the floor of the Nigerian Stock Exchange. financial year. The study was based on secondary sources of data, collected from annual financial reports. The study used content analysis to analyse the voluntary disclosure items. The study finds that voluntary disclosure has a significant negative effect on profitability return on assets, return on equity and net profit margin . The study therefore recommends, among others, manufacturing firms to enhance voluntary disclosure based on a cost benefit analysis of such, and also, help “bridge the gap†between financial numbers and the true economics underlying the company’s transaction. Voluntary disclosure is also recommended as a medium to curtail the shenanigans of earnings management. Ikemefuna, Victor C. | Onuora, J. K. "Effect of Voluntary Disclosure on Corporate Performance of Quoted Manufacturing Companies in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42600.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42600/effect-of-voluntary-disclosure-on-corporate-performance-of-quoted-manufacturing-companies-in-nigeria/ikemefuna-victor-c
This study brings to an academia table the discussion on whether investment incentives are a
motivator or a gift and also explores the moderating effects of Investors‟ Perceptions on Stock market
Performance. By use of key word characters the search initially identified 93 published and unpublished research
papers and after a tentative scrutiny, 66 papers were selected in a random sampling manner in order to give the
birth to this discussion paper. Exploratory research design was used. The key objective of this article was to
investigate on the question as to whether incentives are a gift or a motivator. The study findings reveal than
investor perceptions affects stock market performance more than incentives do. The paper concludes that the
availability, adequacy, and timeliness of relevant information about marketable securities are important for both
pricing efficiency and market confidence. Investment incentives work well in an ideal world to promote
investment while investors‟ perceptions are relevant in the real world. Hence, stock market incentives were
concluded as being a gift and not a motivator for investors to make investment decisions at the stock market.
Impact of Information Technology Investment to Financial Performance on Banki...Hendra Gunawan
This study examines the impact of technology on the performance of financial investment in banking companies listed in Indonesia Stock Exchange to prove its influence on the development of the banking company's financial performance. The data used in this research is secondary data uses financial statements that have been audited. Data analysis technique used is simple regression analysis. Results showed that between investments in information technology affect the company's financial performance. The results of this study illustrate that the company's financial performance would be if the investment in information technology in the company are used effectively and efficiently. This research is important for companies and organizations, in order to better the use or utilization of information technology in the enterprise. The company is only limited to the banking companies listed in Indonesia Stock Exchange, then further research is recommended to add criteria and indicator others that have not been addressed in this study, in addition to subsequent authors can also extend the sample population to another company with a different field such as manufacturing companies.
Intellectual capital: A modern model to measure the value creation in a businessAI Publications
Using a sample of 92 patients, this study looked into the impact of intellectual capital on the efficiency of private hospitals. The researchers used a quantitative approach to assess the effect of Intellectual capital (Human capital, Structural capital, and Relational capital) on long-term competitive advantage in private hospitals in Iraq's Kurdistan region. The research sample was selected using a random sampling method and conducted in various locations across Iraq's Kurdistan province. A total of 110 questionnaires were distributed, but only 92 people correctly completed them. The findings revealed that the most effective relationship with firm success was between human capital as an element of Intellectual capital, while the least effective relationship was between ownership as an element of Intellectual capital. Furthermore, our findings indicate that finance managers should use debts as a last resort in terms of intellectual capital. Finally, our research can be improved by using more controlled variables, a greater sample size, and data from a longer time span in the regression models. Other methods and steps can be used as well.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Mandatory and Voluntary Disclosure of Annual Report on Investor ReactionHendra Gunawan
This study aims to obtain empirical evidence about the influence of mandatory disclosure, voluntary disclosure on investor reaction to either partially or simultaneously. The study was conduct on 38 manufactured companies listed on Indonesian Stock Exchange. There are fve variables that mandatory disclosure, voluntary disclosure as the independent variable, cash flow operating activities (AKOp), cash flows investing activities (AKIn), cash flows fnancing activities (AKDa) as the control variable and the investor reaction was measured by using trading volume activity as the dependent variable. The result indicates that mandatory disclosure partially affect the investor reaction mandatory disclosure, voluntary disclosure simultaneously affect the investor reaction. Limitations are mandatory disclosure, voluntary disclosure, cash flow operating activities (AKOp), cash flow investing activities (AKIn), cash flow fnancing activities (AKDa) are less able to measure the volume of stock trading prediction of the future.
Factors Influencing the Level of Compliance with International Financial Re...Premier Publishers
Compliance with International Financial Reporting Standards (IFRS) by Small and Medium-Scale enterprises (SMEs) has become a topical issue in accounting research, and it has become necessary in order to enhance the ability of SMEs to live up to international best business practices. SMEs are pivotal to the growth and development of any nation's economy. Many countries are opening their doors to foreign investments due to globalization and businesses are expanding beyond their national borders. Therefore, there is a need for the SME sector in Nigeria to be prepared and take advantage of this phenomenon for their growth by ensuring that their financial reports comply with the disclosure requirements of IFRS. This study assessed the factors that influence the levels of compliance with IFRS by SMEs in Ondo State, Nigeria. A cross sectional survey of one hundred SMEs in Akure was conducted through structured questionnaire. The data was analyzed using Single-Factor Descriptive Analysis, Weighted Mean Scoring, Principal Component Analysis and Regression Analysis. The study found there was low level of compliance by the SMEs in the study area and major factors influencing compliance are proper accounting records submission of accounting statements to regulatory bodies and knowledge of IFRS with mean ratings of 3.29, 3.27, 3.26 and 3.24 respectively. It concluded that there is need for the SMEs in the study area to comply with the disclosure requirements of IFRS in order to improve their capitalization and profitability. It is recommended that Financial Reporting Act in Nigeria is reviewed to make compliance of SMEs with IFRS mandatory and that Financial Reporting Council should ensure proper capacity development to enable SMEs compliance.
Effect of Abnormal Cash Flow Quality on Big 4 and Non Big 4 Audited Firms in ...YogeshIJTSRD
This study compare financial reporting quality of Big 4 audited and non Big 4 audited firms in Nigeria. Specifically, compares the abnormal operating cash flow quality, and abnormal production expenditure quality, and unexpected core earnings of Big 4 and non Big 4 audited firms. The study adopts the ex post facto research design as the goal is not manipulate any variable but rather establish comparative difference. The population comprised of quoted manufacturing firms and the sample restricted to a purposive sample of 62 firms from 6 sectors listed on the Nigerian Stock Exchange NSE . The study utilized secondary data retrieved from annual financial statements of the sampled firms. The data were analyzed using several techniques such as multiple regression, and correlation. The results showed a statistically significant difference in abnormal operating cash flow quality of Big 4 and non Big 4 audited firms a statistically significant difference in abnormal production expenditure quality of Big 4 and non Big 4 audited firms. Based on this, the study recommends that shareholders during Annual General Meeting AGM may also seek the adoption of joint auditors to strengthen audit quality and cushion against shocks from manipulative practices of managers or the lack of independence from continued engagement of particular audit firms. Anazonwu, Helen O. | Egbunike, Patrick A. "Effect of Abnormal Cash Flow Quality on Big 4 and Non-Big 4 Audited Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd43847.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/43847/effect-of-abnormal-cash-flow-quality-on-big-4-and-nonbig-4-audited-firms-in-nigeria/anazonwu-helen-o
Exploring the Role of Technology and Internet Financial Reports on Financial ...Premier Publishers
Internet financial reports (IFR) and the associated technology are considered among the most technical issues in Libya financial organizations that encouraged the current study, to better understand the future of financial report users. This has gained widespread acknowledgement in the current literature in recent years, where it became a significant phenomenon in practice. Several kinds of studies on IFRs in several areas have been done in developed countries, while IFR and some factors such as technology (Internet) are still not studied enough in developing countries, especially in public organizations in Libya. This study provides exploratory insight into identifying the aforementioned factors, which may affect the users of financial reports.
One of the key issues highlighted on our end-year KIB Consulting e-news edition is to help our clients in identifying and understanding today’s business landscape and its ongoing risks. The headline was excerpted from the World Economic Forum insight report of Regional Risks for Doing Business 2018.
Corporate Tax Reforms in Pakistan
Tax policy plays an important part in inclusive growth, incomes and wealth redistribution. Owing to a narrow tax base in Pakistan, the ability of taxes to alter distribution of incomes in favour of the poorest income quintiles has been limited. This paper specifically makes a case where private sector has been realizing anticipated profits however their rising incomes did not result in progressive changes in tax contribution. The ability of tax administrative machinery to check evasion has also remained weak.
Another important matter is how a distortive tax policy is preventing entry of new firms and investments which can potentially create greater competition and enhance consumer surplus. Since 2007 Pakistan’s economy has been witnessing low levels of investment. Despite low interest rates, the private sector credit has not picked up. The exports have declined during a period when Pakistan enjoys preferential market access from the European Union and the United States. While large firms operating domestically continue to growth, the survival and growth of new firms is weak.
According to several recent studies, part of the answer to this problem may lies in the way taxes are helping cartelization through exemptions and preferences in the direct (corporate) tax structure. We discuss this view in the light of recent tax directory published by the Federal Board of Revenue. Making use of the key informant interviews and focus group discussions involving the business community, tax officials, trade and consumer associations, we present some recommendations for the reform of corporate taxation in Pakistan.
Foreign companies continue to be attracted by the opportunities offered by China’s large and rapidly growing economy. As those companies look to enter China’s market, they are eager to learn about how the corporate tax system works and what restrictions they may encounter. This practical guide to corporate taxation in China will give you an introductory guide to understanding and complying with China’s corporate taxation system.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdf
I425964
1. American International Journal of Business Management (AIJBM)
ISSN- 2379-106X, www.aijbm.com Volume 4, Issue 02 (February 2021), PP 59-64
*Corresponding Author: Giang Thi Cam NGUYEN www.aijbm.com 59 | Page
TAX POLICY FOR FOREIGN DIRECT INVESTMENT
ATTRACTION IN SOME DEVELOPING COUNTRIES– THE
CASE OF VIETNAM
Giang Thi Cam NGUYEN
Faculty of Finance, Banking Academy, Vietnam
ABSTRACT:Recently, tax incentives are considered as important influencing factors to attract foreign direct
investment (FDI) flows inwards developing countries. Some developing countries in the East Asia are under a pressure
of lowering tax rates competitiveness, which raises negative issues of fair business environment and other social
economics impacts. This paper focused on theoretical and practical issues related to incentives in corporate income tax
(CIT) policies. Then by synthesizingmethod and analyzing data, the paper compared and contrasted CIT incentives
among developing countries; evaluated current status and impacts on FDI inflow during effective period and proposed
some recommendations to reform tax legislation in Vietnam.
KEYWORDS:Developing countries, Foreign direct investment, Tax incentives, Vietnam
I. INTRODUCTION
Currently some countries, even developed ones are considering about applying tax preferential measures in
tax policy related to FDI enterprise. Investment promotion agencies are under pressure to offer incentives to race in
the global battle to attract FDI. Incentives for FDI enterprises could be effective for different kinds of taxes, such as
corporate income tax, international profit shifting tax, tariffs, landfill taxes. In the context of this research, some
theoretical and practical issues in respect of preferential treatment of CIT would be discussed due to its numerous
impacts on FDI enterprises decisions making. Therefore the aim of the research is to: (1) provide general
background of CIT incentives; (2) evaluate the current status of applying tax incentives in 107 developing
countriesfor the period 2009 – 2017 based on The developing country tax incentives database of World Bank report;
(3) propose some recommendations to improve tax policies and investment environment in Vietnam.
II. BACKGROUND OF TAX INCENTIVES
Classifications of tax incentives:
Tax incentive is one of important factors of the national policies for FDI attraction. Through preferential
tax legislation, tax expenditure of FDI enterprises are cut down, thereby the government aims to promote more
attractive and fairly competitiveness business environment in that country among the region and global. FDI
supports to some macro economic targets, such as job creation, advanced technology transfer; export growth and
sustainable economy development.
Some main tax incentives instruments available in developing countries are classified into two groups, namely (i)
profit – based incentives and (ii) cost – based incentives. The advantages and disadvantages of those incentives are
also mentioned below.
(i) Profit – based incentives
These instruments are tax holiday (known as time bound exemption of new firms or investments form
taxes) and preferential tax rates (reduced tax rates that act as a partial exemption of the standard CIT rate). The
governments lower CIT rate for profits earned by the FDI enterprises, by reducing the tax rate to zero for a limited
period during a tax holiday. A plus of the incentive is a direct impact on the firm’s profit. As a result, the instrument
heavily favors multinational companies with high profits, which least need the government’s support. It could lead
to high redundancy of tax expenditure on incentives because an investor predicting high profits would likely have
proceeded in any way. Moreover, host governments deal with the risk of losing substantial public revenue when a
firm earns huge profits in a given period. It also raises an issue of the possibility of tax evasion through profit
shifting. The risk is high for performance – based instruments because the multinational companies could artificially
allocate profits within subsidiaries enjoying concessionary tax treatment (UNCTAD, 2018). The widespread use in
developing countries is a remark in the upcoming design of tax policy.
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Box 1: Advantages and disadvantages of profit – based incentives
Advantages Disadvantages
- Strong directly signaling influencing to
investors, easy communication and
advertisement to FDI firms.
- Unfairly favors investments with high profit
margins and investment with short time of tax
holidays.
- High likely of tax evasion through profits
shifting within firms.
- Remarkable loss of actual fiscal revenue
(ii) Cost – based incentives:
They include: tax allowance (considered as a deduction of taxable income of a firm); tax credit (direct
deduction of tax liability of a firm); accelerated depreciation (depreciation of fixed assets for tax purposes at a faster
schedule than what is normally applied). Compared to profit – based instruments, cost – based ones lower the cost of
specific production factors. In term of tax allowances, the government allows the qualified firm to reduce a certain
share of the investment value from its taxable income. The extent of the benefit to the firm does not depend on its
profit level but the magnitude of the investment that is undertaken. These incentives are numerous strengths: they
avoid the weakness of profit – based incentives in favor of high profitable companies. They are not prone to tax
evasion abuse through international earnings shifting, but their benefit directly linked to the outcome which they are
conditioned. However, few of developing country still are joining a battle of reducing CIT rates, which bring
negative impacts on business environment.
Box 2: Advantages and disadvantages of cost – based incentives
Advantages Disadvantages
- Extent of benefit to investors is linked directly
to extent invested.
- Less prone to abuse through transfer pricing
than profit – based instruments.
- More transparent tax filling process due to
easy tracking forgone revenue.
- Tax revenue loss (tax expenditure) of the
government is more anticipate than profit –
based instruments.
- More challenging and complicated for tax
administration.
- Likely to bias production technology toward
more capital intensive investment.
Positive impacts of tax incentives
The effectiveness of tax incentives in the aim of FDI attraction is debatable in many academic studies for
many years. Most quantitative evidence on a large scale concludes that tax incentives bring positive impact to FDI
inflows (IMF, 2015; WB 2017) but not on a top decision factor. According to Global investment report of UNCTAD
(2018), the changes in tax policy stands 7th
out of 13 macro influencing factors in FDI attraction. Besides, the
different impact depends on the purposes of FDI projects into a host country. For instance, tax incentives is big plus
to attract efficiency - seeking FDI, not to markets seeking FDI and strategic assets seeking FDI (trademark,
advanced technology…). In the WB survey of Investment competitiveness, 64% of efficiency - seeking foreign
investors agreed that tax incentive has important influences to their decisions while only 40% other – seeking
investors supported to that. The explanation might be that CIT is considered as a cost, directly affects net profits of
the firm. Hence, for efficiency - seeking FDI, the main motivation is maximizing profits by minimizing costs,
including tax payment. The investors would compare CIT rate between target host countries and take it as one
decision factor of investment. On the contrary, for other different types of FDI projects, production cost reduction is
not on a top priority. Thus, tax incentives of developing countries become less attractive. The investors seek for a
destination of various natural resources, market magnitude, strengths of technology, labormarket and distribution
network.
As mentioned, the effects of tax incentives rely on specific kinds of instruments. Performance – based
incentives (tax holiday and preferential tax rate) are suitable for high profit FDI firms during given years. It may
cause the issue of abuse to unsustainably expand the scope of investment in the short period (WB, 2017). In contrast,
cost – based incentives (tax allowance, tax credit and accelerated depreciation) are effective for large scale of capital
investment in the long term, such as some projects relating to information technology, healthcare and green
technology).
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Negative impacts of tax incentives
In fact, tax incentives causes significant loss on tax revenue. Budget deficit is a common problem of
developing counties although the government seems to be too generous for FDI attraction related policies. Some of
countries unlikely disclosure information on tax expenditures (tax revenue foregone) in the report of IMF (2015). In
spite of data limitation, WB (2017) researcher still could estimate high rate of loss of CIT revenue out of GDP,
specifically, up to 5.9% in Cambodia; 5.2% in Ghana; 5% in Brazil and 3.9% in Dominican Republic.
It seems that tax incentive regimes in developing countries suffer from weak design, lack of transparency and
inefficient administration. Tax holidays and lower tax rates are widely used in spite of their shortcomings well-
documented. Sufficient transparency and expensive administrative costs make tax instrument less attractive and
raise some indirect costs in term of economic distortions and potential risk of corruption. In the short term,
developing countries could conduct tax reform better targeted and more cost – efficient. By focusing incentives on
those types of investors high likely to respond, developing countries can minimizeunnecessary loss of tax revenue
resulting from incentives granted to FDI enterprises which would invest anyway. It is clear that tax reform to
improve the transparency and administration of tax instruments could help to reduce unnecessary impacts and
expenditures. As a result, it would improve the cost – benefit ratio of tax incentive in a sustainable way.
III. TAX INCENTIVES ADOPTION IN SOME DEVELOPING COUNTRIES
Host country can offer favors of tax policy for FDI enterprises under many different forms. Most popular
incentives are used as tax holiday and preferential tax rate. In 2017, World bank data set has been collected and
synthesized from 107 developing countries during 2009 – 2015. It concluded that 51% of chosen developing
countries offering tax holiday for at least one aspect of industry or field of investment. If sorting out of industry, the
highest rate is construction field with 47% of developing nations applying tax credit for that; whereas the lowest rate
is trade and retail business at only 23%. The average tax free period ranges from 8 to 10 years. Most developing
countries in the database offered tax holiday with strict conditions of specific destinations (about 77%) and research
and development industry (40%).
Figure 1: : Portions of developing countries adopting tax holiday by industry
Source: Developing Country Tax incentives Database, Worldbank (2017)
Similar to tax holiday, preferential tax rate is widely used in host developing countries. Approximately 40%
of nations supplied this instrument for at least one field of investment. The average preferential tax rate is 13%. The
highest favor is offered for production industry, especially food and beverages, IT and electronics (31% of 107
developing countries applied)
23%
24%
24%
25%
25%
26%
27%
33%
36%
43%
44%
44%
44%
45%
46%
47%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Trade and retail
Business services
Financial services
Transportation and logistics services
Agriculture and fishing
Food and beverages
IT and electronics
Machinery and equipment
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Figure 2: Portions of developing countries adopting preferential tax rate by industry
Source: Developing Country Tax incentives Database, Worldbank (2017)
In terms of cost – based incentives, they are applied least popular than profit – based ones. According to the
research, only 16% of data offering tax allowance and tax credit for at least one industry. Almost of these incentives
normally focus on production field (R&D; machinery and equipment) and with specific conditions relating to
performance based outcome of FDI firms.
Figure 3: Portions of developing countries adopting tax incentives by region
Source: Developing Country Tax incentives Database, Worldbank (2017)
If classified by region, developing countries in the East Asia and Pacific are under fierce competitiveness of tax
incentives, specifically 71% of that adopting tax holiday; 60% of that adopting preferential tax rate; 33% of that
adopting tax allowance and same as tax credit. Additional qualified conditions go with investment destination;
export orientation and national benefit in return…
IV. TAX INCENTIVES ADOPTION IN VIETNAM
In Vietnam, many CIT incentives have been applied for a given or entire
investment duration. The preferential tax rates from 10% to 20% depend on the locations and fields of investment.
The government offers tax favor to which projects in difficult socio-economic areas, high- teach zones or
encouraging industry (for scientific and technology development) under some specific terms. In particular, more
18%
20%
19%
21%
21%
21%
21%
21%
21%
30%
31%
28%
31%
30%
30%
29%
0% 5% 10% 15% 20% 25% 30% 35%
Trade and retail
Business services
Financial services
Transportation and logistics services
Agriculture and fishing
Food and beverages
IT and electronics
Machinery and equipment
71%
61%
48%
50%
50%
41%
60%
39%
26%
38%
67%
38%
33%
11%
9%
13%
17%
16%
0% 10% 20% 30% 40% 50% 60% 70% 80%
East Asia and Pacific
Europe and Central Aisa
Latin America and the Caribbean
Middle East and North Africa
South Asia
Sub - Saharan Africa
Shares of nations adopting tax
allowance and tax credit
Shares of nations adopting prefential
taxrate
Shares of nations adopting tax holiday
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*Corresponding Author: Giang Thi Cam NGUYEN www.aijbm.com 63 | Page
than 30 preferential investment fields and 27 special preferential areas spreading up 53 out of 63 provinces in
Vietnam (Truong Ba Tuan, 2019).
The period of tax holiday used in Vietnam (from 2 to 4 years) is much shorter than other countries (normally 8 to 10
years). However, after tax holiday, foreign investors in Vietnam are deducted up to 50% tax liability in the next 4 –
9 years. Besides, profitable FDI firms could use accelerated depreciation for fixed assets as long as no more than 2
times as standard depreciation. Other incentives as tax allowance and tax credit have been not available in Vietnam.
Table 1: Comparison of CIT rate in some developing countries in 2017
Country CIT rate in law Average preferential
tax rate
Total tax rates in
host country
(Note 1)
Level of impact of tax
rate on investment
decision (Note 2)
Vietnam 20% 13.1% 39.4% 3.7
Thailand 20% 22.6% 32.6% 4.1
Philippine 30% 20.3% 42.9% 3.5
Indonesia 25% 16.6% 30.6% 4.2
China 25% 11.1% 68% 4.4
India 30% 23.5% 60.6% 4.5
*** Note 1: Including all tax direct and indirect tax rate in the host country
Note 2: Range from 1 – 7, explained as 1: most remarkable impact to 7: least remarkable impact
Source: World Economic Forum (2017)
Comparing to other countries in the Asia, CIT rate it Vietnam is quite low. It
could be said that tax incentive is advantageous in Vietnam to attract FDI inflow. In addition, OECD report (2018)
admitted about the positive impact of low CIT rate on FDI in some developing countries, such as Vietnam,
Cambodia and Thailand. However, according to Nguyen et.al (2013) research, the efficiency of tax incentives in
Vietnam has not been optimal, about 60% of FDI firms interviewed still invested in Vietnam whether preferential
tax policy was adopted or not. Therefore, tax expenditure foregone relating to loss of tax revenue is higher than
expected. Tax revenue in FDI sector reduced by 70% of total revenue due to tax incentive in Vietnam in 2017
(Truong, 2019).
There are main tax incentives of CIT rate based on invested areas and fields of industry.
(i) Regional incentives
A 10% CIT rate applies for 15 years for polices such as: infrastructure projects established in a location
where natural or socio-economic conditions are severe; project in mountainous or remote areas; reforestation
projects; special projects. Moreover, these projects are entitled to CIT exemption for 4 years from the first profit
making year and a 50% CIT rate deduction for the subsequent 4 years. Reforestation and infrastructure projects in
mountainous and remote areas and large and special projects may be entitled up to an 8 year holiday from the first
profitable year.
(ii) Sectorial incentives
For projects that meets one of the following criteria, a 15% CIT rate applies for 10 years from the first year
of operations: at least 50% of production is exported; at least domestic 500 workers are employed; the project
involves farming or the processing of agricultural, forestry or marine products; advanced technology is used or a
research and development industry is involved and/ or substantial local raw materials are used in accordance with
special conditions. The above projects are entitled to a profit tax exemption for one year from the date of profitable
operation and a reduction of 50% for the subsequent two years.
For projects involved in activities listed below, a 10% CIT rate applies for 12 years from the first year of operation:
project in which at least 80% of production is exported; investment in chemicals, petroleum, electronic component
production and automobile and motorbike component production; the building and operating of infrastructure;
cultivation of perennials; investment in locations where natural or socio-economic conditions are severe…In some
special circumstances, these projects are entitled to CIT exemption for 2 years for the first profit making year and a
50% CIT rate reduction for the subsequent three years.
(iii) Export incentives and free trade zone
Foreign enterprises investing in the Export processing zones (EPZ), regardless of industry, are entitled to
special tax incentives as follows: a CIT rate of 10% for manufacturing projects; a CIT rate of 15% for service
projects; exemption from income tax for the first 4 profit – making years for manufacturing firms and a 50% CIT
rate reduction for the subsequent 4 years; exemption from income tax for the first 2 profit – making years for
services firms and a 50% CIT rate reduction for the subsequent 4 years; a 5% tax on remittance of profits abroad for
6. TAX POLICY FOR FOREIGN DIRECT INVESTMENT ATTRACTION IN….
*Corresponding Author: Giang Thi Cam NGUYEN www.aijbm.com 64 | Page
all types of EPZ enterprises; and exemption from import and export duties for all kinds of machinery and equipment,
raw materials and finished products imported to, or exported from Vietnam.
V. RECOMMENDATIONS TO REFROM TAX POLICY TO ATRACT FDI INTO
VIETNAM
First, the government should improve the design, administration and transparency of tax incentives to
reduce indirect costs and avoid unintended consequences as additional burden to public budget.A key point for tax
policy is to achieve clarity and consensus among stakeholders as to the specific and measurable policy goals to be
pursued via tax incentives. A monitoring and self evaluation framework to track progress toward such objectives is
inseparable to justify the public cost of tax incentives and to adjust inefficient costs.
Second, it is time for the government to target incentives straightforward at those investors whose decision to invest
influenced the most. To do this, it is necessary to well understanding of types and motivation for specific FDI
orientation as well as the cost – benefit evaluation of existing tax instruments. Tax incentives should be aimed at
efficiency – seeking investors, however principles of the investment climate must be addressed first. Tax
competition for efficiency seeking FDI is intense; thus for developing counties including Vietnam, the most
promising strategy is to avoid the use of incentives and instead project their revenue base to support investment in
infrastructure and improvement of the investment climate while designing a medium term strategy to become more
competitive for efficiency seeking FDI.
Third, the government could improve the design of incentives by switching from profit based to cost based
incentives connected to clear policy targets. Tax holiday and preferential tax rate have been widely used in some
developing countries, creating loss on tax revenue and heavy burden to public budget. The upcoming of such profit
based instruments have been well applied for foreign investors whose high profits in the short time horizons. Thus, it
encourages tax planning and international profits shifting. In contrary, cost based incentives could be more close to
policy goals, host country should be realistic for setting up national targets and design tax instruments accordingly.
Controlling and self evaluation system should be in a priority. By enhancing transparency and administration
policies, the government has a chance to avoid indirect costs resulting from rent seeking and firm corruption.
Fourth, apart from tax incentives, to attract quality FDI inflow, the government should focus on globally and
regionally comparable firm level data and seek further micro – based incentives such as rates of returns on foreign
investment and marker size as well as firm expansion, because FDI enterprises also look forfair
competitiveinvestment environment between foreign and domestic firms.
VI. CONCLUSION
The evidence of the efficiency of tax incentives to attract quality FDI inflows needs to be further researched
and developed. Recently, in some developing countries, including Vietnam have been applying traditional tax
incentives widely without careful selection. Thus, the paper aims to evaluate the current issues and results of
preferential tax instruments into FDI inflows, based to this, some feasible solutions to the government to consider
about policy reform for sustainable investment and economic development.
REFERENCES
[1] IMF (2015), Options for low income countries„ effective and efficient use of tax incentive of investment,
Washington, D.C
[2] Nguyen, T. C & Hoang T. P; Ray D (2013), “Measuring the effectiveness of corporate income tax
investment incentives for domestic companies in Vietnam”, Journal of emerging issues in economics,
finance and banking (JEIEFB), 1 (1).
[3] OECD (2018) Investment policy reviews: South East Asia
[4] Truong Ba Tuan (2019) “Tax incentives in Vietnam”, Journal of Finance of Vietnam, 8 (2).
[5] UNCTAD (2018), World Investment Report 2018: Investment and the digital economy, United Nations
publication
[6] World Bank (2017), 2017/2018 Global Investment Competitiveness Report: Foreign Investor Perspectives
and Policy Implications, Washington, D.C.
[7] World Economic Forum (2017), The Global Competitiveness Report 2017 – 2018.
*Corresponding Author: Giang Thi Cam NGUYEN1
1
(Faculty of Finance, Banking Academy, Vietnam)