Effect of Taxes on Corporate Investment Decisions. (Essay Sample)

Effect of Taxes on Corporate Investment Decisions
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Effect of Taxes on Corporate Investment Decisions
Corporation tax has significant effects on a company's corporate investment decisions because it directly influences the amount of net profit a company makes. Corporation tax is part of the government's profit for authorizing a company to operate business activities within its territories. The purpose of this paper is to discuss the effects of corporation tax on corporate investment decisions.
First, high corporation tax rates reduce the profitability of an investment because it reduces the profit; thus, it is favorable if the tax rate charged on profits earned from an investment is relatively low (Gandullia & Piserà, 2020).