An Overview of Current Tax Incentives Matters Among Companies in Malaysia
The Earth is sick! The fact of climate change is now widely accepted by every major scientific body universally. The environment is positing challenges to everyone. People around the world have taken notice of the world's ills, and major governments are working on solutions to curb with the pressing issues to slow down the effects and begin to shape a better world for the future. Some of the initiatives by the Malaysian Government is the introduction of tax incentives among the companies. This study aims to provide an overview of the current tax incentive issues among companies in Malaysia. Purposive sampling method was adopted to collect responses from Malaysian companies by using a semi-structured questionnaire. The results reveal that majority of the companies acknowledged the predicament of rising production cost and emerging environmental issues yet most of them are unaware about the tax incentives offered by the Government. The study informed that the facilitating factors for tax incentives application and implementation are the companies’ financial resources; supportive management, and the clear directives from the Government. Time consuming in studying the requirement, complicated procedures and benefit reap from the tax incentives application are the main barriers that contribute to low tax incentive applications. This study contributes by providing a timely review of current tax incentives situations in Malaysia and proposals for better utilisation of tax incentives for companies’ performance.
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