Factors Affecting SMEs Successful Utilization of Tax Incentives In Manufacturing Sector

  • Nadiah Abd Hamid Universiti Teknologi MARA
  • Rohaya Mohd Noor Universiti Teknologi MARA
  • Mustaffa Mohamed Zain Universiti Teknologi MARA


This study aimed to determine the key factors associated with successful utilization of tax incentive and to further investigate which factors were significant via the logistic approach. Using the convenient sampling, 125 SMEs in the manufacturing sector were selected as samples. The findings showed four factors; capital investment, business strategies, government support and environment were significant in attributing to successful utilization of tax incentives. A further analysis using the logistic approach was extended to determine the underlying factors of why some SMEs were able to utilize the tax incentives, whilst others were not. The results from the logistic approach revealed that factors related to the governance of companies had significant influence on the ability of the company to effectively utilize the tax incentives. This study used both primary and secondary data and employed methods, such as, survey and real financial data analysis retrieved from companies’ financial statements.Keywords: Tax incentives, utilization of tax incentives, successful, SMEs, manufacturing sector, economic goal.
Jun 30, 2011
How to Cite
ABD HAMID, Nadiah; MOHD NOOR, Rohaya; MOHAMED ZAIN, Mustaffa. Factors Affecting SMEs Successful Utilization of Tax Incentives In Manufacturing Sector. Management & Accounting Review (MAR), [S.l.], v. 10, n. 1, p. 1-16, june 2011. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/232>. Date accessed: 30 nov. 2022. doi: http://dx.doi.org/10.24191/mar.v10i1.232.