Corporate Income Tax Planning and Firm Performance of Listed Companies in the Stock Exchange of Thailand in SET100 Index
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Abstract
This research aims to examine on the relationship between the corporate income tax planning and firm performance of listed companies in the Stock Exchange of Thailand. The sample composes of 81 companies in SET100 index excluding the financial sector using the financial information during 2020-2021 162 firm-year in total. The data was analyzed using percentage, mean, standard deviation, multiple correlation analysis, and multiple regression analysis. The results showed that the listed companies have a corporate income tax plan in order to pay less tax. An effective tax rate was 11 percent compared to the current tax rate of 20 percent. However, there is no relation found between corporate income tax planning and firm performance significantly. Therefore, it implies that tax planning is only a mechanism of tax management of executive for tax benefits rather than emphasizing on economic benefits such as maximizing profit or firm value.
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