Appraisal of Tax Incentive on Corporate Performance in Calabar Free Trade Zone

The study was on the appraisal of tax incentive on corporate performance in the Calabar free trade zone. This was due to the fact that in spite of the tax incentives put in place, companies are not investing in Calabar Free Trade Zone. The study therefore evaluate if there is any significant difference between the effect of profit with exempt profit taxes and profit without exempt profit taxes on the profitability of companies in the Calabar Free Trade Zone. Ex-post facto design was used for the study. The hypothesis was tested using, the independent sampled t-test.it was discovered that there is a significant difference between the effect of profit with exempt profit taxes (M=253.0708, SD=350.07458), and profit without exempt profit taxes on companies in the Free Trade Zone (M= 172.1630, SD= 237.87061); t (94) = 1.324, p=.016. The magnitude of the differences in the means is very high (eta squared = 0.18). The government should sustain the tax incentives in order to maintain industrial and economic development growth potentials of the Zone and that of the nation as a whole. If these incentives are sustained, the government on the other hand, tends to recover revenue lost to tax incentives from personal income tax of employees and sales taxes of products generated by the industrial growth of the Zone.