Factors Affcting Corporate Income Tax Refund

Abstract

The objective of this research is to study factors affecting corporate income tax refund. Factors in the study consist of the amount of tax excess, firm size, audit firm type, additional withholding tax, business type, and change in corporate income tax rate. Samples in the study are corporates that have corporate income tax excess located in the Chonburi Area 2 Revenue Department between 2012 and 2014; in total 2,633 samples.
The results show that factors affecting corporate income tax refund consist of the amount of tax excess, audit firm type, additional withholding tax, and changes in corporate income tax rate. Firms having a high amount of corporate income tax excess are more likely to refund corporate income tax and firms are more likely to refund corporate income tax in the period that corporate income tax is reduced. However, the results indicate that firms having additional withholding tax and employing one of the Big 4 audit firms are less likely to refund corporate income tax. Finally, the results present that firm size and business type are not affecting corporate income tax refund.