The Effect of Profitability on Tax Planning on Company Manufacture Sub Pharmacy Sector Which Registered on the Stock Exchange Indonesia

Dina Ramadhani, Soul Lesmana

Abstract


Tax planning is an effort to carry out and minimize taxes, which can legally be done through tax management. Meanwhile, for the state, taxes are an important source of revenue which will be used to finance state expenditure, both routine expenditure and development expenditure. Meanwhile, in business practice, entrepreneurs generally identify paying taxes as a burden. So entrepreneurs will try to minimize tax payments, to optimize the size of profits. In this research, tax planning is calculated using the effective tax ratio formula, namely dividing net profit by profit before tax. The author's aim is to determine the effect of profitability on tax planning in pharmaceutical sub-sector manufacturing companies listed on the Indonesian Stock Exchange. The number of samples in this research was 8 companies using a purposive sampling technique. The analysis technique in this research uses regression analysis and t test. The results of this research show that Return On Assets has a significant negative influence on tax planning in pharmaceutical companies listed on the IDX. The greater the value of return on assets produced by the company shows the company's ability to generate profits, with the amount of profit continuing to increase it will certainly influence the company to carry out more effective tax planning.


Keywords


Tax Planning, Profitability, Company Manufacture

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References


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DOI: https://doi.org/10.30596/miceb.v1i0.501

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