The Effect of Profitability on Tax Avoidance Among Property & Real Estate Companies on the Idx Period 2020–2024
DOI:
https://doi.org/10.59890/ijels.v4i6.27Keywords:
Profitability, ROA, Tax Avoidance, ETR, Real Estate CompaniesAbstract
The purpose of this study is to determine how much profitability, as determined by Return on Assets (ROA), affects tax avoidance behavior, as determined by the Effective Tax Rate (ETR), among real estate and property companies listed on the Indonesia Stock Exchange (IDX) between 2020 - 2024. All businesses that operate in the property and real estate sector on the IDX are included in the research's overall population. Purposive sampling was used to choose a sample of thirty businesses, yielding 150 units of analysis. The study's data came from secondary sources, namely the companies' annual financial reports. Simple linear regression analysis was employed as the analytical method, processed using SPSS software. The findings indicate that ROA does not contribute statistically significant ETR, as seen from the t-value of -0.541 and a significance level of 0.589, which exceeds the threshold of 0.05. Furthermore, the R-squared value of 0.002 indicates that profitability only contributes 0.2% of the variation in tax avoidance, for the rest 99.8% is due to other factors. These results lead to the conclusion that tax avoidance practices in the real estate and property sector are not dominated by profitability levels.
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