Proceedings of the 9th Terengganu International Business and Economics Conference 2025 (TiBEC IX 2025)

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Corporate Tax Planning across Industries: An Analysis of Effective Tax Rates in Malaysia

Authors
Noor Emilina Mohd Nasir1, *, Siti Nasuha Muhmad1, Najihah Marha Yaacob1, Siti Nurhazwani Kamarudin1, Norfadzilah Rashid2, Mustapha Jamiu3
1Universiti Teknologi MARA Cawangan Terengganu, Sura Hujung, 23000, Dungun, Terenganu, Malaysia
2Faculty of Business and Management, Universiti Sultan Zainal Abidin, Gong Badak Campus, Terengganu, Malaysia
3Accounting Education Department, Federal College of Education (Technical), Bichi, Kano State, Nigeria
*Corresponding author. Email: nooremilina@uitm.edu.my
Corresponding Author
Noor Emilina Mohd Nasir
Available Online 31 July 2025.
DOI
10.2991/978-94-6463-801-1_10How to use a DOI?
Keywords
Effective tax rate; tax planning; statutory tax rate; agency theory; tax planning theory
Abstract

This study examines the level of effective tax rates (ETR) among listed companies in Malaysia, focusing on industry-specific variations from 2016 to 2021. Using a dataset of seven industries, trends and differences in ETR are identified to determine which industry has the highest and which has the lowest tax efficiency. In addition, the study analyses the relationship between the ETR and the statutory tax rate (STR) using a paired-samples t-test to identify significant discrepancies. A one-way ANOVA is conducted to determine if there are significant differences in ETR across industries. The results provide insight into the tax planning practices of companies and highlight the differences in tax strategies across industries. These findings are relevant for policy makers, corporate managers and investors as they show the tax efficiency and compliance behaviour of Malaysian listed companies over time across different industries. Given the strategic importance of taxation, understanding these differences is crucial for policy makers, investors and corporate managers.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 9th Terengganu International Business and Economics Conference 2025 (TiBEC IX 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
31 July 2025
ISBN
978-94-6463-801-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-801-1_10How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Noor Emilina Mohd Nasir
AU  - Siti Nasuha Muhmad
AU  - Najihah Marha Yaacob
AU  - Siti Nurhazwani Kamarudin
AU  - Norfadzilah Rashid
AU  - Mustapha Jamiu
PY  - 2025
DA  - 2025/07/31
TI  - Corporate Tax Planning across Industries: An Analysis of Effective Tax Rates in Malaysia
BT  - Proceedings of the 9th Terengganu International Business and Economics Conference 2025 (TiBEC IX 2025)
PB  - Atlantis Press
SP  - 128
EP  - 139
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-801-1_10
DO  - 10.2991/978-94-6463-801-1_10
ID  - Nasir2025
ER  -