|
|
| |
| Tax Incentives and Investment Performance of Selected Oil and Gas Multinationals in Nigeria
Download PDF
|
Atube, E.N.& Okolie, A.O.
|
Abstract:
This paper examined the effect of tax incentives-TAIV on investment performance. Having developed a model fit on tax incentives using Tax Exempt Income, Loss Relief, and Investment Allowance against investment performance (return on investment-ROI). This study adopted ex-post facto design as they are based on the secondary historical data collated from annual financial reports of the nine (9) selected Nigerian oil and gas companies from 2017 to 2021 listed on the Nigerian Exchange Group (NGX). The study disclosed that, Tax Exempt Income, Loss Relief, and Investment Allowance have joint effect on ROI. Based on this, the study concludes that tax incentives are a major driver of investment performance-ROI in Nigeria. On this premise, firms should convert their high earned income to low earned income in order to pay less tax which influences investment performance. Again, firm should ensure that all the losses sustained within the year are relieved subsequently so as to pay less and influence more investment performance. Lastly, tax authorities should look at ways to provide more incentives like investment allowance to firms which reduces taxable profit and consequently ensures investment performance.
|
|
|
| | |