TAF PUBLISHING

With the changing era of the world, it has become necessary for every firm to remain updated and keep on searching for how it can better satisfy the customers’ needs than other firms; for this, it should be active in research and development. The goal of every firm is to reduce its costs as much as it can, and taxes are one of the highest costs due to which a firm cannot spend on many other activities. This study has focused on the impact of research and development on the financial performance of the firms along with the impact of tax avoidance on the financial performance of the firms in the firms from a non-financial sector of Pakistan. This study has explored more and tried to clarify the big question of that is there any impact of research and development on the financial performance of the firms that was answered in a mix in previous studies and also calculated the effective tax rate in another way rather than using the usual methods to pay taxes.