Analysis of the Impact of Tax on Companys Investment Strategy: Case of the Biovarm Drug Company

Authors

Talbi Mohammed, Accounting and Financial Sciences Department, Faculty of Economics, Management & Commercial Sciences, Ali Lounici University, Blida, AlgeriaFollow
Menacer Abdesslam, Accounting and Financial Sciences Department, Faculty of Economics, Management & Commercial Sciences, Ali Lounici University, Blida, AlgeriaFollow
Belkacem Omar, Accounting and Financial Sciences Department, Faculty of Economics, Management & Commercial Sciences, Ali Lounici University, Blida, AlgeriaFollow
Mujeeb Saif Mohsen Al-Absy, Accounting and Financial Science Department, College of Administrative and Financial Science, Gulf University, Sanad 26489, Kingdom of BahrainFollow

Abstract

The aim of the study is to identify and clarify the extent of the impact of the tax legislation on the investment strategy of the institution. Further, it attempts to evaluate the effectiveness of the tax incentives created by a legislator to pay positively for an economic institution. Lastly, the study looked at the outcomes that the organization can draw upon in implementing its investment strategy. Indeed, the state seeks to reduce the tax burden on the companies and tries to encourage them to make more investment. The results show that tax variable influences an enterprises investment strategy through its imposed tax mix, rates of tax subjugation, legal provisions of the tax legislation that specify the procedures to be followed by an enterprise to determine taxable profit, and the calculations of the value of the taxes and fees to be paid. The study showed that the tax legislator sought to support the economic institution by reducing the tax burden on it by granting tax exemptions and tax breaks, especially for corporate profits. On the other hand, it has limited it to the set of legal texts regulating the procedure for determining the tax base, such as the provisions, the revaluation of assets and the accounting treatment of deductible costs.

Recommended Citation

Mohammed, Talbi; Abdesslam, Menacer; Omar, Belkacem; and Saif Mohsen Al-Absy, Mujeeb (2023) "Analysis of the Impact of Tax on Companys Investment Strategy: Case of the Biovarm Drug Company," Information Sciences Letters: Vol. 12 : Iss. 9 , PP -.
Available at: https://digitalcommons.aaru.edu.jo/isl/vol12/iss9/18