...Tax Incentives and Facilities in Bangladesh Exemption and allowances according to ITO, 1984: Tax rebate: An assesse shall be entitled to a credit from the amount of tax payable on his total income of an amount equal to fifteen percent of the sums specified in paragraphs of the said Part B of ITO, 1984. The aggregate of the allowances admissible of the Sixth Schedule Part B shall not exceed- (a) One crore and fifty lakh taka (b) exceed thirty per cent of the total income of the assesse. Tax Exemption: 44. (4) The Government may, (a) Make such amendments by way of addition, omission, alteration or qualification (b) Make any exemption, reduction in rate in respect of tax in favor of any class of income or in regard to the whole or any part of the income of any class of persons. Exclusion from total income: • Any income derived from house property held under trust or other legal obligation wholly for religious or charitable purposes. • Any service charge derived from operation of micro credit by a non-government organization registered with NGO Affairs Bureau; • Any voluntary contributions received by a religious or charitable institution and applicable solely to religious or charitable purposes; • The income of a local government; • Any income accruing to, or derived by, a provident fund to which the Provident Fund Act, 1925 (XIX of 1925), applies; • Any income accruing to, or derived by, workers participation fund established under the Bangladesh Labor Act...
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...Tax incentives Singapore is well positioned to maintain its economic competitiveness in today’s global environment with a low headline corporate tax rate of 17%, generous tax exemptions for small-to-midsize companies, and industry-specific tax incentives. The Government of Singapore provides a comprehensive package of tax concessions and incentives to businesses whose business activities reflect the direction in which the state plans to steer economic development. 1. Development and Expansion Incentive (DEI) The DEI encourages Singapore-based companies to move into high value-addition business activities, expand their operations in the country, and procure advanced machinery and equipment by offering a reduced tax in the range of 5%-10% on incremental income derived from qualifying activities. 2. International / Regional Headquarters Award (IHQ / RHQ) The Regional Headquarters Award and International Headquarters Award provide a reduced corporate tax rate on incremental income from qualifying activities. * Regional Headquarters Award: Under the (RHQ) Award, qualifying companies can enjoy a concessionary tax rate of 15% for five (3+2) years on incremental qualifying income from abroad, instead of the regular Singapore corporate tax rate of 17%. In other words, if applicant company satisfies all the minimum requirements by the third year of the incentive period, it will enjoy the 15% concessionary tax rate for an additional 2 years on qualifying income. This scheme applies...
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...NEW TAX INCENTIVE FOR LONG-TERM EQUITY INVESTMENTS There has been a great deal of public discussion about the increased individual and corporate income tax rates and general harsh treatment of upper income taxpayers under the Omnibus Budget Reconciliation Act of 1993. However. there has been scant attention to what may, in fact, prove to be a silver lining in that tax cloud - the newly authorized capital gains exclusion for the stock of certain companies. Under the Act. non-corporate holders of stock in "qualified small businesses" can escape tax on up to one-half of any gain from the sale of that stock which they have held for at least five years. 1. Qualified Small Businesses The new tax benefit is only available if the issuing corporation ("Issuer") is a qualified small business on the date of the stock issuance and during "substantially" all of the period that an investor holds its stock. In order to qualify as a small business. an Issuer must satisfy the following requirements: A. Non-Qualifying Corporations: The corporation cannot be an S corporation; a domestic international sales corporation that has made an IRC section 936 election: a regulated investment company: a real estate investment trust. a real estate mortgage investment conduit or a cooperative. B. Conduct of Active Business: It must use at least 80% (by value) of its assets (including intangible assets) in the actual conduct of a "qualified trade or business...
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...2003 pp. 1–25 The Effect of State Income Tax Apportionment and Tax Incentives on New Capital Expenditures Sanjay Gupta and Mary Ann Hofmann ABSTRACT: This study examines how variations in states’ corporate income tax regimes affect new capital investment by business. Using U.S. state-aggregated data from 1983 to 1996, we find in pooled and fixed-effects regressions that new capital expenditures by corporations in the manufacturing sector are decreasing in the income tax burden on property (measured as the product of the statutory tax rate and the property factor weight), and increasing at a decreasing rate in investment-related tax incentives. The effect of the income tax burden on property is more pronounced for states mandating unitary taxation or the throwback rule. Triangulating our empirical findings with prior analytical and simulation studies suggests the following hierarchy for the relative importance of major attributes of state corporate income tax regimes: the unitary or throwback requirement is most influential on incremental capital investment, followed by apportionment weights and tax rates, and, finally, investment-related incentives. Keywords: state taxation; apportionment formula; tax incentives, unitary business principle, throwback rule. JEL Classification: H20; H71. INTRODUCTION he purpose of this study is to provide empirical evidence on the effects of variations in states’ corporate income tax regimes on new capital investment by business...
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...Evaluating the tax incentives for foreign investors policy Reporting to the Manufacturers league Executive Summary This report has been written in response to the government’s proposed tax incentive policy for foreign multi-national corporations to increase foreign direct investment within Australia. The report draws attention to the reasons behind the government’s proposal. These include the slow growth trends of the manufacturing industry, restoring the dropped level of foreign investment caused by the global financial crisis as well as a desire to increase levels of employment within the manufacturing sector. It continues by drawing attention to the resultant competitive issues that may be caused by such a move as well as issues that may arise due to inflation. It also draws attention to the tendency for foreign investment to result in less government intervention which may affect the industry in the longer term. It is recommended that: * The government increase the breadth of its proposal to all investors in the manufacturing industry so as to reduce competitive pressures on local manufacturers. * The government increases investment in training to provide a skilled workforce and reduce inflationary wage pressures. Introduction This Report shall be to determine whether or not tax incentives, with relation to foreign direct investment (FDI), are beneficial, holistically. First we must say a word about the nature of FDI. FDI can be defined as “....
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...Incentive programs are one of many ways organizations motivate employees. Our goal is to design an incentive program that is aligned with the company’s goals, needs, skills, and abilities. Incentive pay can be determined by merit pay and performance bonuses. Studies have found that pay-for-performance plans help achieve organizational goals and desired performance results. Merit pay is a reward in which employees receive permanent pay increases such as raises as a function of their individual performance ratings. Although it can be different across industries, some recent surveys have demonstrated that 80% to 90% of organizations use merit pay plans (Heneman & Werner, 2005) Merit raises should be fair and based on performance ratings and the biggest increase is given to the best performers. Performance bonuses are monetary rewards for performance and not rolled into base pay. Bonuses must be earned and re-earned during each performance period. Bonuses are attractive to many organizations because the one-time cash reward links pay to performance and motivate employees. (Lawler, 1981; Lowery, Petty, & Thompson, 1996) There are several core legal requirements that will affect our employee’s benefits. These legal requirements include tax treatment of benefit, anti-discrimination laws, and accounting requirements. The federal and state governments require various forms of social insurance to protect workers from the financial hardships of being out of work. The IRS...
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...project How is base pay adjusted over time? Cost of living adjustments Seniority pay, merit pay Incentive pay, person focused pay All of the above Extrinsic compensation includes? Base salaries and bonuses Jobs that provide autonomy Both monetary and nonmonetary rewards Traditional pay 4) Competency based can be defined as? Two basic types of focused pay programs, pay for knowledge and skill base pay Compensation for longevity Phased wage approach Retirement compensation 5) Pay for knowledge can be defined as? a) Rewards for managerial, service, or professional workers for successfully learning specific curricula b) Consultant fees c) Measures labor productivity 6) Skill-based pay defined is? a) Employees who work on computers b) A term used mostly for employees who do physical work c) Trade that deals mainly with the restaurants industry d) Skills considered supervisory 7) Incentive pay defined is? Augments employees base pay Appears as a one-time payment Employees usually receive a combination of recurring base pay and incentive pay All of the above 8) Incentive pay plans can be broadly classified into what 3 categories. a) Store sales, profit levels, customer quality b) Cost savings, reduction, services c) Individual incentive plans, group incentive plans, company wide plans d) Number of units produced, amount of sales, error rate 9) Individual incentive pay plans are most appropriate under what 3 conditions? a) Where employee’s performance can...
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...Four Incentive Methods Comparison Introduction To motivate staff contribute more to the company, companies use their own incentive methods. British firms prefer share scheme, merit pay is often used in French companies (David & Richard, 2010) while In China, a large amount of corporations perform EVA-based scheme. (Yongjian, Lei &Donghua, 2015) For executives, formula-based arrangement is often used. (Robert, David & Richard, 1995). This leads to the question of what’s the advantage and disadvantage of the four payments. In the literature, I only discuss about individual incentives. Knowledge Gap The share scheme is extended rapidly these years. The incentive helps the employees perform as the shareholders do. When the company’s retained earnings increases, they are also benefited. Another advantage of this incentive is tax-avoiding. Merit pay is a traditional but effective motivating method. How much one earns depends on his performance. However, it is also difficult to determine what kind of expectation should be rewarded and how to reward. If the standard is not fair enough, it might lead to contradiction between the employees and executives. (David & Richard, 2010) EVA-based mechanism grantees the profit of the company. EVA defines company profit as the part of the return exceeds the capital cost. Under the mechanism, the more profit the company earns, the more incentive the staff will have. Also, when the company’s revenue is negative, the incentive will...
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...Importance of alignment [300 words]: The role of incentives in securing execution Employees are the agents of the firm’s owners since they take actions or make decisions that impact the payoff to the owners. The difficulties in the agent-principal relationships arise when the objectives of principal and agent are different and the actions taken by the agent or the information possessed by the agent are hard to observe. Employees care about the job in terms of the value the job generates for themselves. Thus providing the right incentives to employees would secure execution of the firm’s plans to meet the firm’s objectives. There are financial and non-financial incentives. Non- financial incentives are social and moral incentives. Which incentives are appropriate depends on the objective of the company. Since motivation comes from within the employees, the personality, needs and interest of each employee determine the right incentives that will influence employees to self motivate and produce the best work possible that will contribute to the firm meeting its objectives. Reward and recognition is concerned with the range of practices an organisation undertakes (financial and non-financial) to compensate employees, maximise employee engagement and encourage behaviours that lead to organisational success. A good reward and recognition system should motivate employees while aligning their goals with those of the organisation. Such a system involves balancing employee remuneration...
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...Compensation – The sum total of all forms of payments or rewards provided to employees for performing tasks to achieve organizational objectives Rs Compensation- Nature and scope • The complex process includes decisions regarding variable pay and benefits • It suggests an exchange relationship between the employee and the organization • It involves design, development, implementation, communication and the evaluation of reward strategy and process of the organization Compensation Objectives 1. 2. 3. 4. To reward employees’ past performance fairly, in line with efforts, skills and competencies To attract and retain competitive high performing employees To motivate the high performing employees and reinforce desirable employee behaviour To remain competitive in the labor market 5. 6. 7. To align employees’ future performance with organizational goals To communicate the employees their worth to the organization To provide employee social status • Strategic compensation – Using the compensation plan to support the company’s strategic aims. – Focuses employees’ attention on the values of winning, execution, and speed, and on being better, faster, and more competitive.. • IBM Strategic Compensation Planning • Strategic Compensation Planning – Links the compensation of employees to the mission, objectives, philosophies, and culture of the organization. – Serves to identify the net monetary payments made to employees with specific functions of...
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...knowledge and understanding that the local government needs to do more so as to attract new business to our city. It is evident that in order to appease the chamber, the local government needs to develop business attraction strategies. The attraction strategies formulated aim at making the city more aggressive compared to other cities when it comes to its recruitment activities. With this at hand, I propose 4 business attraction strategy activities that would make our city attractive and at also have a positive impact on the local treasury. One activity that the local government can engage in so as to attract new businesses is the provision of both financial and non financial incentives. Such incentives should be targeted to the needs of new recruiting businesses. For example, offering tax incentives and exemptions to strategic businesses, which promote the town’s economic growth. Secondly, the local government can reduce the utility rates for businesses as it would help spur economic growth of the city. The reduction of rates on electricity and water will also give a reason for those businesses willing to locate to riverside. The other activity which the local government can engage in is the development of the town’s profile. With the profile in place, one can compare their town with other towns in similar demographics and identify its unique characteristics. Hence, the local government can embark on activities that lead to the town’s strengths...
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...of Economic Research Discussion Paper Number 2097 Paternalism and Psychology by Edward L. Glaeser December 2005 HARVARD UNIVERSITY Cambridge, Massachusetts This paper can be downloaded without charge from: http://post.economics.harvard.edu/hier/2005papers/2005list.html The Social Science Research Network Electronic Paper Collection: http://ssrn.com/abstract=860865 Paternalism and Psychology Edward L. Glaeser† Does bounded rationality make paternalism more attractive? This Essay argues that errors will be larger when suppliers have stronger incentives or lower costs of persuasion and when consumers have weaker incentives to learn the truth. These comparative statics suggest that bounded rationality will often increase the costs of government decisionmaking relative to private decisionmaking, because consumers have better incentives to overcome errors than government decisionmakers, consumers have stronger incentives to choose well when they are purchasing than when they are voting and it is more costly to change the beliefs of millions of consumers than a handful of bureaucrats. As such, recognizing the limits of human cognition may strengthen the case for limited government. INTRODUCTION An increasingly large body of evidence documenting bounded rationality and non-standard preferences has led many scholars to question eco1 nomics’ traditional hostility towards paternalism. After all, if individuals have so many cognitive difficulties then it is surely possible...
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...Pay systems Introduction Pay is a key factor affecting relationships at work. The level and distribution of pay and benefits can have a considerable effect on the efficiency of any organisation, and on the morale and productivity of the workforce. It is therefore vital that organisations develop pay systems that are appropriate for them, that provide value for money, and that reward workers fairly for the work they perform. Pay systems are methods of rewarding people for their contribution to the organisation. Ideally, systems should be clear and simple to follow so that workers can easily know how they are affected. In considering rewards it should be borne in mind that pay and financial benefits are not the only motivator for worker performance. Other important motivators for individuals may include job security, the intrinsic satisfaction in the job itself, recognition that they are doing their job well, and suitable training to enable them to develop potential. What are pay systems? Key Points: Pay systems provide the foundation for financial reward systems There are basic rate systems, where the worker receives a fixed rate per hour/week/month with no additional payment There are systems related in whole or part to individual or group performance or profit There are systems based in part on the worker gaining and using additional skills or competencies Pay systems provide the bases on which an organisation rewards workers for their individual contribution, skill and...
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...HRM-430 final exam Page 1: Multiple Choices Question 1.1. (TCO 1) Which pay structures represent companies' compensation policies that fit with their business objectives? (Points : 5) | Market competitive Internally consistent Equitable Analytical | Question 2.2. (TCO 2) Medicare Part A is based on what type of healthcare option? (Points : 5) | Preferred provider plan Medical savings account Managed care option Fee for service | Question 3.3. (TCO 3) Helen believes that the company should share part of the risk for her sales position. Which sales compensation plan should she pursue? (Points : 5) | Salary-plus-bonus plan Commission-only plan Commission-plus-draw plan Salary-plus-commission plan | Question 4.4. (TCO 4) The level of specialization or expertise an employee brings to a job are what type of skills? (Points : 5) | Depth Breadth Work team Horizontal | Question 5.5. (TCO 5) The collective bargaining system was established by the passage of which federal act? (Points : 5) | Davis-Bacon Act National Labor Relations Act Wagner Act Union Labor Relations Act | Question 6.6. (TCO 6) You broke your leg at work. The company called to inform you that they had to switch your benefits from the short-term disability account to the long-term account. That means you have probably been off work...
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...MONETARY REWARDS [pic] EMPLOYEE MONETARY REWARDS Monetary rewards are given for a variety of reasons. Some examples are meeting sales goals, achieving quality, outstanding performance in a given situation, or delivering a special project. Typical rewards are money in a form of a bonus, trips paid for by the company, gifts from a rewards catalog, or services such as cell phone or paid cable. TYPES OF REWARDS Selecting the appropriate rewards is vital to any programs success. The goal in choosing rewards is to select items that will spark the participant’s interest or feelings, and support the program’s objectives. Effective rewards will both motivate short-term behavior and provide motivation over time. VARIABLE PAY Variable pay or pay-for-performance is a compensation program in which a portion of a person's pay is considered "at risk." Variable pay can be tied to the performance of the company, the results of a business unit, an individual's accomplishments, or any combination of these. It can take many forms, including bonus programs, stock options, and one-time awards for significant accomplishments. Some companies choose to pay their employees less than competitors but attempt to motivate and reward employees using a variable pay program instead. According to Shawn Tully in Fortune , "The test of a good pay-for-performance plan is simple: It must motivate managers to produce earnings growth that far exceeds the extra cost of [the program]. Though employees...
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