The Impact of the Change of Corporate Income Tax Law on Investment Levels of Manufacturing Companies

In this paper, the researchers tested the impacts of the change made in the corporate income tax law on the corporate taxes, net incomes, retained earnings, and the levels of investment of manufacturing companies admitted into Tehran Stock Exchange. To do the task, at first, changes in the amounts of corporate income taxes, net incomes,retained earnings, and investment levels of the companies during the years before and after the changes in question were compared and tested. To test the hypotheses, t-test, analysis of variance, and multiple regression methods were used. Results obtained indicated considerable changes in the amounts of corporate income taxes andinvestment levels of manufacturing companies in the years after the change of the Iranian Direct Taxes Act as compared to the years before the change of the law.